Filinvest Development Corporation

Company Profile: Filinvest Development Corporation
Ticker: FDC
Exchanges: PHL
2008 Sales: n/a
Major Industry: Construction
Sub Industry: Miscellaneous Construction
Country: PHILIPPINES
Employees: 2723

Filinvest Development Corporation.
The Group’s principal activities are carried out through its Real Estate, Banking and Financial Services and Sugar divisions. Real Estate is involved in the acquisition of land, planning and development of large-scale residential and commercial communities, development and sale of residential and commercial lots and the development and leasing of retail and office space and land. This division is also involved in the construction and sale of residential condominiums and office buildings,development of farm estates, and industrial and business parks. Banking and Financial Services provides commercial banking operations, including savings and time deposits in pesos and foreign currencies, commercial mortgage and agribusiness loans, payment services and fund transfers. Sugar produces sugar both in raw and refined form. It also produces ethanol from the molasses by-product of the sugar production process.

Filinvest Development income growth

Filinvest Development Corp. posts 952% income growth for 2006

Josephine Gotianun-Yap, the president of the Group’s holding company, Filinvest Development Corporation (FDC), stated that the company reported a net income of P1.6 billion for 2007 or a 952% increase from P150 million of 2006. She further said that the Group reported a net extraordinary gain of P1.1 billion resulting from the sale by Filinvest Alabang, Inc. (FAI) of its shares in stocks of Filinvest Land, Inc. (FLI) during the very successful FLI follow on offering last February 2007. But even without this extraordinary gain, net income from regular operations still jumped by a remarkable 213% to P 470 million. The real estate sales of lots, condos and club shares by its affiliate companies – FLI and FAI increased by 61%. She added that net real estate revenues jumped from P 762 million to P 2.8 billion. As of March 31, 2007, total assets of FDC stood at P 94.6 billion from P 86.1 billion of 2006 and total equity is P 45.7 billion from P 36.1 billion.

Gotianun – Yap attributed the growth to the subsidiaries’ increased market reach made possible by product innovation, wider geographic reach, and product diversification.

FDC is expected to strengthen its foothold in the BPO sector with Northgate Cyberzone and PBCom Tower. 70,000 sqm of gross leasable floor area are currently under construction, increasing total leasable space in Northgate Cyberzone to over 130,000 sqm.

With the continued recovery of the Philippine economy, FDC is showing its optimism by developing more projects in key cities of the country. FLI will launch 14 new projects in 2007 namely Sunrise Place and Westwood Mansions in Cavite, Auburn Place in Binan, and The Glens in San Pedro, Laguna. The Arborage, a high end enclave within Brentville International, will also be launched.

FLI is also broadening its market reach by building condotels, medium rise buildings and residential resort communities. Grand Cenia is an 18-storey condotel located within Cebu’s central business district. One Oasis is a complex of nine 5-storey residential medium rise buildings conveniently located within Pasig City and is easily accessible to malls, schools, and other institutions.

The company expanded its market reach by tapping high growth regional centers. There is an ongoing expansion at North Luzon with the development of The Mac Arthur Villas in Tarlac and Asbery Villas and Claremont Village in Pampanga. Outside Luzon, there’s Kembali Coast in Samal Island, Davao which is a 50-hectare Asian-Balinese inspired island getaway offers exclusivity within the 1.8 km beachline that offers unobstructed view of the sea. Other regional projects include Escala – Cebu and West Palms – Puerto Prinsesa.

Another master-planned project of FDC is Seascapes in Mactan Island, Cebu. It is a 12-hectare residential resort community that offers a 2.5-hectare beach club, fully furnished casitas, villas, condos and 56 premium lots. It is currently selling beach club shares and the casitas fractional shares. Seascapes offers great views, accessibility to conveniences, and high-end facilities and amenities.

In the commercial sector, FAI was able to capitalize on the delivery of three completed condominium buildings in Filinvest Corporate City. FAI has five residential buildings under construction with four new towers set to launch this year.

Revenues from another subsidiary, East West Banking Corporation, went up by 12% from P 331.9 million to P 372.4 million as of March 2007. In the end of 2006, total resources of East West amounted to P 30.30 billion.

FDC remains confident about its prospects in 2007. The last five years were focused on building financial strength among subsidiaries by improving bottom lines, increasing cash flow generation and carefully managing financial leverage.

The coming years will focus on growing new investments towards improving on shareholder’s equity. Aggressive moves are in the offing as the company gears up its expansion strategy geared for long-term growth and stability.

FDC Press Release: May 23, 2007

Filinvest Land, Inc.

Filinvest Land, Inc. (FLI) is one of the leading real estate developers in the Philippines. It is a subsidiary of Filinvest Development Corporation (FDC), which has more than 40 years of experience in real estate development. Founded by Mr. Andrew L. Gotianun, Sr., FDC is the holding company of the Gotianun Family. Originally engaged in the small-scale financing of second hand cars in 1955, the Gotianun Family’s business later expanded into consumer finance in partnerships with foreign institutions such as Chase Manhattan Bank, Westinghouse Electric Corporation and Ford Philippines. By the early 1980’s, the Gotianun Family’s Filinvest Credit Corporation had become one of the leading consumer finance companies in the Philippines in terms of assets, and the “Filinvest” name had become well-recognized in the Philippines. The Gotianun Family entered the real estate business in 1967 through the incorporation of Filinvest Realty Corporation, which engaged in the development of residential subdivisions. In 1984, the Gotianun Family consolidated their real estate interests in FDC after divesting their shares in two family-owned banks, Family Bank and Trust Company and the Insular Bank of Asia and America. By 1990, FDC expanded its product line to include the development and sale of low-cost and medium-cost housing units.

FLI was incorporated on November 24, 1989 as Citation Homes, Inc. and changed its name to FLI on July 12, 1993. It began commercial operations in August 1993 after FDC spun off its real estate operations and transferred all related assets and liabilities to FLI in exchange for shares in FLI. FLI was listed on the Philippine Stock Exchange (PSE) on October 25, 1993. FDC remains FLI’s largest shareholder, beneficially owning approximately 51% of FLI’s outstanding common shares and all of its outstanding preferred shares.

Leader in Affordable Housing Segment
FLI’s business has historically focused on the development and sale of affordable and middle-market residential lots and housing units to lower and middle-income markets throughout the Philippines. It has developed over 2,000 hectares of land, and provided home sites for over 110,000 families, which makes it one of the largest home providers in the Philippines today. In recent years, FLI has expanded its residential business to include other income segments (high-end) and themed residential projects with a leisure component, such as farm estates and developments anchored by sports and resort clubs.

FLI has substantial experience in developing and introducing new formats to the residential real estate market. The Company intends to be at the forefront of market changes by continually innovating and introducing new project formats to anticipate and meet market demands. Recent innovations include:
(a) Homes situated on small lots designed to be expanded vertically through the addition of a second storey without requiring the occupants to vacate the home while the second storey is being added.
(b) The “Entrepreneurial Village” or “Asenso Village” concept which is the result of a collaborative effort with the Government to allow entrepreneurs with small- and medium-size businesses to live and work in a residential development with access to Government agencies that assist small businesses.

FLI is also a pioneer in the development of very large master-planned township developments which provide a convenient mix of commercial, industrial and residential uses.

FLI currently has about 70 projects located in 30 cities and municipalities nationwide. The Company has an extensive network of sales offices, in-house sales agents and independent brokers located throughout the Philippines, as well as accredited brokers in countries and regions with large Overseas Filipino Workers (OFW) and expatriate Filipino populations (such as the Middle East, Japan, Italy, the United Kingdom and the United States). Approximately half of FLI’s real estate sales are directly or indirectly derived from Overseas Filipinos (OFs).

Extensive Landbank
FLI has, over the years, accumulated an extensive, well-located, low-cost landbank. As of the end of 2007, FLI’s landbank stood at 2, 361 hectares, bulk of which is located just outside Metro Manila in the nearby provinces of Rizal, Bulacan, Batangas, Cavite and Laguna, as well as in growth areas such as Cebu, Davao and General Santos City in South Cotabato province.

Investment Properties Provide Recurring Income Stream
In 2006, FLI acquired three strategic assets: (1) The Festival Supermall, in Filinvest Corporate City (FCC) in Muntinlupa (southern Metro Manila), (2) A 60% stake in Filinvest Asia Corporation which owns half of PBCom Tower within the Makati Central Business District, and (3) A 60% stake in Cyberzone Properties, Inc., developer of office buildings in Northgate Cyberzone, a 10-hectare Business Process Outsourcing (BPO) office park with multinational tenants.

Festival Supermall is the largest shopping center in Southern Metro Manila with a gross area of 200,000 square meters. It has over 600 retail stores and outlets, ten cinemas, a 36-lane bowling center and two themed amusement centers. It also has exhibit, trade and music halls which are leased out to events like trade fairs.

PBCom Tower is currently the tallest building in the Philippines with 52 floors. It is located at the corner of Ayala Avenue and Herrera Street in Makati City. Filinvest Asia Corporation owns 36,000 square meters of leasable office space in PBCom Tower, which is leased out to about 30 tenants which include multinational companies and BPO firms.
Meanwhile, Northgate Cyberzone, the BPO campus within Filinvest Corporate City, currently has eight (8) office buildings with a gross leasable area (GLA) of 71,000 square meters. Four (4) buildings are under construction which will add more than 59,000 square meters of leasable space before the end of 2008. This makes FLI the leader in developing offices with infrastructure to support IT-related and BPO businesses in the growing southern Metro Manila area.

By the end of 2008, FLI will have a total BPO office portfolio of 167,000 square meters of GLA, making it one of the top BPO landlords in the Philippines.

20% Stake in Developer of Central Business District in Southern Metro Manila

FLI has a 20% stake in Filinvest Alabang, Inc. (FAI), the developer of the 244-hectare Filinvest Corporate City (FCC). Since the start of its development in 1995, FCC has grown to become a major destination in southern Manila that services all segments of the population with a wide array of retail, office and residential developments. The corporate city is home to key anchors such as the Asian Hospital and a fast growing office base in the Northgate Cyberzone. The second busiest transport terminal in Metro Manila is in the immediate vicinity, making FCC a major gateway for commuters going into and out of Metro Manila from the south. The ongoing construction of the extension of the Skyway elevated road to Alabang will significantly enhance the value of FCC and further increase its attractiveness as the location of choice for offices and residential living in the South of Metro Manila.