Eton Properties expects sharply lower profit this year

MANILA STANDARD - Eton Properties Philippines Inc., the real estate unit of the Lucio Tan Group of Companies, expects net income to decline 60 percent this year to P300 million from P733 million in 2011 due to construction delays.

Eton said in a statement profit in the first six months of the year reached P31 million, down sharply from P418 million year-on-year while revenues slid 60 percent to P995 million from P2.5 billion a year ago.
The company partly attributed the lower profit to the non-recognition of sales of projects that had not started construction. The company uses the percentage-of-completion method in recognizing residential project revenues.

Construction of Eton’s ongoing residential and commercial projects continued full-blast in the first half, but development of Aurora Heights Residences, First Homes Makati and West Wing Villas was moved back to give way to design improvements and enhancements.

“We moved back construction timetables of some projects for much-needed design improvements. These range from road widths to building façade. The enhancements would definitely add value to these projects in terms of quality and functionality,” Michael Tan, officer-in-charge of Eton Properties, said.

Tan said he expects the recognition of income from these projects once construction begins.
Construction on the fully-sold West Wing Villas is expected to start in September this year while that of high-rises First Homes Makati and Aurora Heights Residences is expected in the first quarter of 2013.
First Homes Makati is a 34-story condominium project along Pasong Tamo, Makati, just steps away from Ayala Avenue.

The company recently launched Hanna Manor, the 11^th cluster of The Manors at North Belton Communities in Quezon City, an enclave featuring 14 clusters of five-story mid-rise buildings.
Eton also plans to launch within the year a Quezon City project featuring mid-rise and high-rise structures, a residential condominium for the upper class market in Makati and the second tower of First Homes Makati.
Eton Properties has launched 45 projects since the company started operations five years ago. Its portfolio of launched and completed projects includes residential, commercial, office projects and township developments.

Trading of Eton Properties’ shares is currently suspended because of the non-submission of reportorial requirements to the Philippine Stock Exchange.

For more details on Eton projects, you may e-mail reby_ramirez@yahoo.com or contact her at 0922.883.9308 / 0916.4044.555 / 0919.699.3572 / 4044-534.

For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.

Bank merger clears another hurdle

BUSINESSWORLD - THE MONETARY BOARD has green-lighted the merger of Philippine National Bank (PNB) and Allied Banking Corp. (Allied Bank), with the Securities and Exchange Commission (SEC) left as the sole regulatory hurdle to the union.

In a disclosure to the stock exchange, PNB said: "we received ... advice from the BSP (Bangko Sentral ng Pilipinas) under Monetary Board Resolution No. 1270 dated Aug. 2, 2012, approving the plan of merger and articles of merger of PNB and Allied Bank, with PNB as the surviving entity."

Allied Bank President Anthony Q. Chua, in an e-mail, yesterday said: "[Pending SEC approval,] the two banks continue to meet and plan the integration process. This will continue until the merger is fully completed."

PNB and Allied Bank are still responding to SEC queries regarding the merger, he said.

Philippine Deposit Insurance Corp. was the first of three regulators to approve the merger, issuing its approval on July 26.

The plan, approved by the banks’ shareholders in 2008, is expected to be implemented this year. New share swap terms were approved in March.

PNB will exchange 130 PNB common shares for each Allied Bank common share and 22.763 PNB common shares for every Allied Bank preferred share. The PNB shares will be issued at P70 apiece, up from the P55 approved in 2008. PNB will issue a total of 423.96 million common shares.

Also in March, Allied Bank sold a 28% indirect stake in San Francisco-based Oceanic Bank to California-based FNB Bancorp, clearing another merger hurdle.

Full integration of the Tan-led banks is targeted for completion 18 months after SEC approval, Mr. Chua said. After the merger, PNB will have 650 branches and assets of over P500 billion, making it the country’s fifth largest bank.

PNB earned P1.169 billion in the first quarter, up 1,000% from a year earlier. Allied Bank, meanwhile, netted P629.105 million in the same period, up 153%.

PNB shares closed at P72.95 apiece yesterday, up 20 centavos.

For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.

Michael G. Tan thrust into limelight

Unlike other Filipino-Chinese taipans, it took a lot longer for Lucio Tan—the country’s second-richest man, according to Forbes magazine—to make clear to the public the succession plans for his vast empire.

But such is no longer the case after the tobacco and beer magnate announced Tuesday that his diverse business empire composed of at least 17 large and small firms would be consolidated under publicly listed Tanduay Holdings Inc.

Soon to be renamed LT Group Inc., the holding company is headed by the taipan’s son, Michael, whose profile has risen since he took over the helm of his father’s flagship beverage firm, Asia Brewery Inc.

Interviewed by the Inquirer Tuesday, the foreign-schooled Michael conceded that his father’s decision to consolidate his business empire under one roof comes late compared to other taipans.

But the timing is good.

“It’s all about timing,” he said. “The stock market is up and it’s a good time to do this.”

He added jokingly that the name “LT Group” comes after similar moves by other taipans to consolidate their empires under holding firms named after their patriarchs.

“We’ve seen ‘JG Summit’ (owned by John Gokongwei Jr.) and we’ve seen ‘GT Capital’ (owned by George Ty), so why reinvent the wheel? It’s a trend and it works,” he said.

Indeed, stock market investors reacted positively to the decision to inject at least P200 billion worth of assets into the lightly traded holding firm.

At the Philippine Stock Exchange on Wednesday, the stock was heavily traded and its stock price shot up 50 percent—the most any stock can rise in a single session.

Now 46 years old, Michael Tan took his early education at the Jesuit-run Xavier School, which caters mainly to affluent Chinese-Filipino students.

“I studied there until second year high school, then my father sent me to Singapore, where I continued high school for three more years,” he said.

He was then sent to study at the prestigious Peking University where he soaked up Chinese culture, before he went to the University of British Columbia in Vancouver, Canada, from which he graduated with a civil engineering degree.

On returning to the Philippines, he was gradually eased into the day-to-day operations of his father’s empire, starting with the brewery business and eventually in the real estate firm, Eton Properties.

At present, Michael remains the chief operating officer of Asia Brewery—the country’s second-largest beer maker—and the officer-in-charge at Eton. He also holds directorships representing his father’s concerns in Allied Banking Corp., the Philippine National Bank, Philippine Airlines and Philip Morris Fortune Tobacco Co., among others.

It remains unclear when the 78-year-old Lucio Tan will retire, but it has become increasingly clear that Michael, given the roles he has been playing in running the business, is his heir apparent.

Asked to describe his management style, Michael says he—like his father— has an eye for detail. But he is quick to point out that he is less of the micromanager that his father is known to be—something business associates confirm.

“It is also important to me to establish accountability,” he said, adding that while he gives greater latitude to people working under him, he is strict when it comes to defining which company official is responsible for what.

“I don’t like officials pointing fingers at each other,” he said.

Going forward, Michael said LT Group Inc. will remain focused on the businesses of aviation (through its 51 percent stake in Philippine Airlines); tobacco (through PMFTC); beverages (through Asia Brewery); real estate (through Eton Properties); and banking (through the soon to be merged PNB and Allied Bank).

“These are really the five pillars of our business, and we intend to remain focused on them,” he said. “I want to look at the synergies that can happen between them and leverage the experience we have in these industries.”

First up on his plate as the head of the consolidated holding firm is to restore its stock market free float to the minimum of 10 percent, as it is expected to drop to 6 percent once the major operating firms are folded in.

“We will have to do a follow-on offering of primary shares,” he said, adding that the move will be part of a series of moves that will result in the LT Group firms being more liquid on the bourse.

Characteristically, he is reluctant to reply when asked whether the corporate changes signal his looming ascension as his father’s chosen one.

“What we are seeing here is only the start of a process,” he said.

For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.

Lucio Tan sets landmark asset-consolidation plan

Business Mirror - One of the country’s richest men, Lucio Tan, is embarking on a landmark asset consolidation plan that will see his banking, tobacco, real estate, airline, beer and liquor empire all housed under one publicly-traded company.

Tan’s chosen firm is listed rum maker Tanduay Holdings Inc., which will be renamed into LT Group Inc., a filing to the Philippine Stock Exchange late Tuesday showed.

Once completed by the September target, the transaction would create one of the country’s biggest conglomerates with a coveted mix of consumer-related investments.

Analysts said the consolidation is likely a form of estate planning for the 78-year-old taipan, whose humble beginnings as an immigrant from China have garnered as much attention as the multi-billion dollar business group he would one day establish.

Forbes Magazine recently ranked him as the Philippines’s second richest man—just behind SM Group founder Henry Sy— with a fortune estimated at $4.5 billion.

Based on the disclosure, LT Group will acquire unlisted Tan companies like Asia Brewery Inc. and Fortune Tobacco Corp. Also to be acquired are listed Eton Properties Philippines Inc., Philippine Airlines and its low-cost unit Air Philippines.

Tan’s two banks, namely, Philippine National Bank (PNB) and Allied Banking Corp., which will be merged, are also set to be acquired by LT Group Inc.

“As a representative of the Philippine economy, it will be a very attractive company. The problem is what the valuation will be,” Joseph Roxas, president of stock brokerage firm Eagle Equities Inc., said in a phone interview.

Trading of Tanduay’s shares were halted Wednesday ahead of the announcement. The company last closed at P5.10 per share, giving it a market value of P20.30 billion.

Based on the disclosure, Tanduay will acquire 90 percent of Asia Brewery, the maker of Manila Beer, Colt 45 and Coors, via a cash subscription of P1.8 billion, or P1 per share based on par value. Asia Brewery also owns firms that produce the Cobra energy drink and Absolute distilled drinking water.

Tanduay is also buying 83 percent of Fortune Tobacco for P1.64 billion, also at P1 per share, in a cash subscription. Fortune Tobacco owns 49.6 percent of PMFTC Inc., a venture with Philip Morris Philippines Manufacturing, which makes and distributes brands Philip Morris, Marlboro, Hope, Champion and Fortune brands.

Moreover, Tanduay will acquire 98.1 percent of Eton Properties, a listed property developer with projects in Metro Manila and a township development in Laguna province, via the acquisition of its unlisted parent companies.

The company did not disclose financial details on Eton's transaction and other publicly listed companies involved in the deal. Eton had a market value of P4.6 billion on Tuesday.

The disclosure also said that 49.84 percent of flag carrier Philippine Airlines Inc. and 50.97 percent of Air Philippines will be acquired by LT Group. Tan’s partner in both airlines is conglomerate San Miguel Corp., which has vowed to bring the Asia’s oldest carrier back into the black by the second year of its takeover.

PAL Holdings Inc., the listed owner of both airlines, had a market value of P39.58 billion on Tuesday.

Tanduay said it is buying 34.79 percent of PNB by acquiring 11 holding companies that own the stake and 27.62 percent of Allied Banking by buying out two firms that hold the stake. PNB had a market value of P49.6 billion, based on current prices.

“The board of directors believes that the enlarged portfolio will provide the corporation with significant opportunities for synergies and business growth,” Tanduay said in its disclosure.

It said proceeds from a recent P5 billion  top-up equity sale will be used to finance these investments, altering the earlier use of proceeds intended to grow Tanduay’s liquor business.

For more details on Eton properties, you may e-mail reby_ramirez@yahoo.com or contact her at 0922.883.9308 / 0916.4044.555 / 0919.699.3572 / 4044-534.

For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.

SOHO meets Urban Convenience at 8 Adriatico

Philippine Star - The home is a haven for comfort, and the office is a place for work. But thanks to modern and chic Small Office Home Office (SIHO) units of 8 Adriatico, one can work and live in an upbeat yet corporate environment right at the heart of Manila.

Prime Home Office
The Lucio Tan-led Eton Properties Philippines, Inc. meets the market’s needs as it launches 8 Adriatico, a unique residential condominium with a SOHO feature.

Located at the heart of Manila along Padre Faura Street, 8 Adriatico is situated right beside Manila’s biggest mall, Robinsons Place Manila. This 42-storey high-rise development features SOHO units poised to cater to entrepreneurs and self-employed individuals. During the daytime, a SOHO unit functions as an office. At night, it serves as a comfortable home to relax and unwind.

According to Eton Senior Vice President for Business Development Prim Nolido, “8 Adriatico addresses the high demand for home office units in this part of Manila. With the growth of Small and Medium Enterprises (SMEs), the demand for more convenient corporate offices has been steadily surging, especially in places like Adriatico which has a high market potential for businesses because of its proximity to schools, government offices, malls and tourist hotspots.”

Polished, Distinct, Unique.
8 Adriatico houses distinct, spacious 25 sqm studio, 39 sqm 1-bedroom and 79 sqm 2-bedroom SOHO units. It mixes work ergonomics with elegant interiors in a corporate yet comfortable home office.

Views that distinguish Manila are scenes to behold at 8 Adriatico. As a 42-storey high-rise condominuim, 8 Adriatico holds breath-taking views of Manila Bay’s sunsets and Malate’s colorful avenues.

Unit owners can likewise unwind at the amenity area located at the sixth floor. Here, 8 Adriatico holds sparkling blue swimming pools, a well-equipped gym and a modern function room. Such an ambience inspires creativity and innovation for business owners.


Sound Investment
Aside from unmatched comfort and efficiency, 8 Adriatico’s residential and SOHO units further offer sound investment. Its accessibility to established city amenities keeps the units’ high investment value.

8 Adriatico sits in grandeur surrounded by tourist hotspots and national landmarks. Within a kilometer radius are historical sights like the Manila Cathedral, San Agustin Church, Fort Santiago and the National Museum. Five-star hotels also abound in the area. A few steps away are midnight parties that pulsate and color the nights along the streets of Malate. 8 Adriatico enjoys easy access to malls and commercial strips in the area. Its convenient location beside Robinsons Place Manila offer residents a privileged lifestyle of utmost ease.

With its efficiency, convenience and high investment value, 8 Adriatico is the ideal location to grow your business while living in unmatched comfort.

For more details on 8 Adriatico and Eton projects, you may e-mail reby_ramirez@yahoo.com or contact her at 0922.883.9308 / 0916.4044.555 / 0919.699.3572 / 4044-534.

For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.

Upscale 68 Roces not an ordinary luxury community

(The Philippine Star) Updated July 18, 2012 11:16 AM 

Eton Properties Philippines. Inc. is redefining upscale living in Quezon City with 68 Roces. The exclusive community’s distinct architecture, units and location cannot be seen in other property developments in the area making the residence a unique status symbol for its future homeowners.

The 3.3-hectare community shaping up along Roces Avenue possesses the modern contemporary look without the townhouse impression. Units are of three to four floors with an attic. Glass walls enhance the sophisticated design and allow natural sunlight to brighten virtually the entire interior. From within, the see-through walls not only give the elegant feel but also extended space to the already roomy units as the outside comes into view in near-panorama.

A 3-floor, 3-bedroom unit’s total floor area of at least 158 square meters is an unmatched size in other horizontal developments in Quezon City. It is only exceeded by the 68 Roces’ largest 4-floor, 4-bedroom corner units of 238 square meters. Generous vertical space is complemented by vertical expanse. The loft-like upper floors give the living, dining and kitchen areas a high ceiling, affording the unit added brightness and airiness. The four toilets and baths and one powder room stresses the spaciousnessof the units.
A 3-floor, 3-bedroom unit has three options for lounging, entertaining guest or small family socials. There is the living room in the ground floor, the loft in the second floor and the attic with its view of the community’s streets and
 residential clusters.

Even cars have twice the space for parking. The carport can accommodate two cars saving homeowners the trouble of parking while making the streets within 68 Roces an obstruction-free driveway.

68 Roces is located midway in Roces Avenue in the quiet side of the district.Such rare environment found only in Quezon City complements the relaxing and luxurious ambience within the gated community.

Homeowners and their children can enjoy in the modern clubhouse, swimming pools, playgrounds and other first-class amenities, including the signature green pathways.

68 Roces is very near schools and colleges like ImmaculateConceptionAcademy, St. PaulUniversity, Grace Christian and XavierSchool, as well as commercial centers like Eton Centris, SM North EDSA and Trinoma.
It is also just a stone’s throw away from premier medical institutions such as CapitolMedicalCenter, Philippine Orthopedic Center, St. Luke’s and Delos Santos hospitals.

No other townhouse community or subdivision in Metro Manila offers green pathways, a 2.5 meter wide grass-layered passageway between residential clusters connecting the entire neighborhood. Aside from serving as a backyard garden extension, the pathway acts as a buffer zone for adjacent structures while creating an air corridor to allow easy airflow movement between and inside the living room areas. The green pathways offer a different experience for unit owners and their family. It provides them a pleasant place to stroll around and relax. Moreover, it also gives them a safe venue where their kids can play freely and hassle-free.

While staying in the comfort of their homes or having fun at the clubhouse and other amenity areas, homeowners can have peace of mind, knowing the community is well-secured. The main gate along Roces Avenue and the gates along Scout Reyes and Scout Santiago Streets are guarded round the clock with CCTV cameras providing extra security. The entire community is protected by a high perimeter wall with electrified fence.

68 Roces is attracting homeowners from the upper class segment, including overseas residents who want to stay in a luxurious home. Three completed clusters (total of 17 units) were turned-over last May 2012. Another six residential clusters (total of 34 units) are for turnover in October while additional single-attached units are under construction.

Along with the 43 projects Eton launched in 5 years, 68 Roces showcases the company’s enviable track record of building extraordinary developments through innovative homes.

For more details on 68 Roces and other Eton Properties, you may e-mail reby_ramirez@yahoo.com or contact her at 0922.883.9308 / 0916.4044.555 / 0919.699.3572 / 4044-534.

For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.