ABACORE Capital Holdings, Inc. (ABA) is banking on the economic development of Batangas to help enhance shareholder value in the future.
In a statement issued Tuesday, the listed holding firm said it has a land bank of over 200 hectares in the province, consisting of residential, commercial, tourist and industrial zones.
ABA noted that the average acquisition cost for its land bank ranged from P400-1,000 per sq.m., lower than the selling price in the market of about P2,500 per sq.m. for raw land, P6,000 per sq.m. for commercial land, and up to P20,000 per sq.m. for those located near a beach.
“These prices have room for growth for any of our future buyers and partners, especially if you compare to the heavily saturated prices in Metro Manila,” ABA President and Chief Executive Officer Regina O. Reyes said in her report during the company’s annual shareholders’ meeting.
“We expect land values to increase exponentially over the next year as it has over the last two years and expect AbaCore assets to grow considering our land bank.”
As a holding company, ABA generates revenues through dividends from its subsidiaries and other companies where it has interests.
The company’s current investments include Abacus Coal Development Corp., which owns more than 7,000 hectares of coal mine claims in Surigao; Abacus Gold with “thousands of hectares” in gold mine claims; and Abacaus Global Technovisions, Inc., the owner of Alpha Hotel in Batangas City.
It further has interests in Montemaria Asia Pilgrims, Inc., where its landmark real estate project called the Montemaria Tower of Peace is located; Philippine Regional Investment Development Corp. with different assets in Batangas; and Montemayor Aggregates and Mining Corp., which has entered into a joint venture for a vertical development in Batangas.
“(M)anagement is constantly in the field finding the best companies and industries to invest our funds for better shareholder value. We also leverage our funds by investing in our land bank around Batangas for future joint ventures and land sales,” Ms. Reyes said.
ABA, through affiliate Simlong Energy, has recently partnered with three Chinese companies for a P155-billion energy project that will include naphtha refinery, liquefied natural gas terminal, and a 1,560-megawatt power plant in Batangas City.
The company looks to start the project by next year.
ABA trimmed its net loss attributable to the parent to P3.06 million in the first quarter of 2019, against the P7.42 million it booked in the same period a year ago. Gross revenues, meanwhile, soared 118% to P14.44 million.
Shares in ABA dropped 7.62% or eight centavos to close at 97 centavos each at the stock exchange on Tuesday. — Arra B. Francia
