Walter Brown is expanding his real estate business as buyers show renewed interest; ABCI posts record P1.9B reservation sales

Bullish on its prospects this year, A Brown Co. Inc. (ABCI), the holding company of businessman Walter Brown, has lined up several real estate projects with a focus on low-density communities to take advantage of the strong demand.

The company will aggressively build up its real estate portfolio to sustain its growth momentum following a 27 percent jump in reservation sales to P1.9 billion last year.

Sales mostly came from projects based in Northern Mindanao. These include the Thai-inspired oral Resort Estates, the first residential resort estate in Initao, Misamis Oriental, and Ignatius Enclave Phase 2, a premiere gated subdivision in Upper Balulang, Cagayan de Oro, which features a clubhouse and park.

Using proceeds from its P1.33 billion follow-on offering last November, ABCI will start construction of the Coral Bay Suites, the first condo by the bay located in Initao, Misamis Oriental; the Teakwood Crest, featuring views of Macalajar Bay, mountains and cityscape in Brgy. Agusan, Cagayan de Oro City; and the Mountain Pines AgroTourism and Retirement Estates, an eco-farm concept located in the foothills of the Kitanglad Range in Manolo Fortich, Bukidnon.

Following its success in Northern Mindanao, ABCI is bringing the same concept to Luzon with several projects lined up in Tanay, Rizal. The company’s Adelaida Mountain Residences and Adelaida Homes project will feature lots and housing units together with a commercial frontage.

ABCI has earmarked P600 million for the development of real estate projects in key cities in Mindanao and Luzon. Some P400M has also been set aside for further strategic landbanking.

“The fund raising activity allows us to maximize opportunities in our real estate business alongside expansion in new growth industries. In recent years, ABCI has focused on strengthening our balance sheet. We are on track for further growth ,” said Robertino Pizarro, president and CEO of ABCI,.

 SOURCE: Bilyonaryo

Read More

Walter Brown gearing up for expansion of real estate business, new growth markets

 A.Brown Co. Inc. of bilyonaryo Walter Brown kicked off the sale of preferred shares to raise as much P1.5 billion to support the development of various projects including the first commercial electron beam (E-Beam) irradiation facility in the Philippines.

It is selling up to 15 million preferred shares, including an oversubscription option of up to five million preferred shares, at P100 each. The offer will run until November 19 with tentative listing set on November 29.

The preferred shares will carry an initial dividend rate of 7% per annum, to be paid quarterly.

PNB Capital and Investment Corp. is the sole issue manager, lead undewriter and sole bookrunner of the offer.

A.Brown is setting aside P600 million of the total proceeds to partly fund its real estate projects in key cities in Luzon and Mindanao. Another P400 million will go to strategic land banking initiatives in Tanay, Rizal, Cagayan de Oro, Butuan City and Bukidnon.

Some P350 million has been earmarked for subsidiary Irradiation Solutions Inc.’s e-beam project, located in Tanay, Rizal. The facility will cater to the medical and food industries.

The e-beam is a globally accepted technology used for the reduction of microbial loads in spices, herbs and cosmetic raw materials. It is also used for treatment of fruits and seafood and is one of the most economical sterilization methods for medical devices.

“This fund raising activity allows us to maximize opportunities in our real estate business alongside expansion in new growth industries. In recent years, A Brown has focused on strengthening our balance sheet with an increasing asset and equity base and low reliance on debt,” said Robertino E. Pizarro, A.Brown president.

 SOURCE: Bilyonaryo

Read More