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Exports flat, imports up in June – PSA

The country’s trade deficit widened in June as exports were flat while imports grew by double-digits, reported the Philippine Statistics Authority.
Exports declined by a mere 0.1% to $5.7 billion in June, improving from a 1.8% decline in May albeit worse than the 17.1% growth in June 2017.
The latest merchandise export figure brought year-to-date receipts to $32.732 billion, down 3.8% from $34.035 billion in the same six months last year.
The country’s balance of trade in goods widened to a $3.350 billion deficit in June from $1.586 billion a year ago as imports grew by double-digits. The country’s import bill increased 24.2% to $9.05 billion during the month, faster than the 12.6% seen in May and 0.6% in June 2017.
So far, 2018 saw a 13.2% merchandise import growth compared to a 10% target set for the year.
On a cumulative basis, the recorded trade deficit was at $19.105 billion versus the $11.749 billion seen in Jan-June 2017.
Hong Kong is the Philippines’ top export market in June with a 15.8% market share at $901.2 million followed by the United States’ 15.5% ($884.65 million) and Japan’s 13.9% ($793.69 million) market shares.
Meanwhile, China was the country’s top source of imports with a 21.4% share in June ($1.93 billion) followed by the 9.8% and 9.7% market shares of Korea ($886.31 million) and Japan ($881 million), respectively. — Christine Joyce S. Castañeda

July inflation boosts rate hike odds

By Melissa Luz T. Lopez
Senior Reporter
INFLATION surged faster than market expectations in July to clock a fresh multi-year high, the Philippine Statistics Authority (PSA) reported on Tuesday, increasing the odds of an aggressive interest rate hike from the central bank on Thursday.
The PSA reported a 5.7% inflation rate in July, picking up for the seventh consecutive month on a year-on-year basis. It was also the fifth straight month that inflation pierced the central bank’s 2-4% full-year target average.
July’s pace was faster than the 5.2% recorded in June and 2.4% in July 2017.
Headline inflation rates in the Philippines (July 2018)
This was near the midpoint of the 5.1-5.8% estimate range provided by the Bangko Sentral ng Pilipinas (BSP) Department of Economic Research, but was higher than the 5.5% median in a BusinessWorld poll of economists last week.
Year-to-date, headline inflation averaged 4.5%, above the BSP’s 2-4% target for the year and matching monetary authorities’ full-year forecast average.
The PSA attributed July’s acceleration to the faster annual increases in nine out of 11 commodity groups, led by food and non-alcoholic beverages (7.1% from 6.1% in June 2018); alcoholic beverages and tobacco (21.5% from 20.8%); transport (7.9% from 7.1%); housing, water, electricity, gas, and other fuels (5.6% from 4.6%); and health (3.7% from 2.7%) among others.
Meanwhile, the food-alone index in July was higher at 6.8% compared to June’s 5.8% and July 2017’s 2.9%.
Core inflation, which excludes volatile food and energy prices, clocked in at 4.5% in July — from June’s 4.3% and the year-ago 2.1% — and averaged 3.5% so far this year.
BSP Governor Nestor A. Espenilla, Jr. told the Senate Committee on Finance yesterday that the faster inflation was caused by higher global oil prices, additional excise taxes, as well as heavy rains and flooding that constricted supply of rice and farm products.
These are “generally outside the scope of monetary policy,” the central bank chief noted, even as he assured that monetary authorities were ready to take “decisive” action as needed.
“We will consider all the latest data updates in determining the strength of our follow-through response in the upcoming policy meeting of the Monetary Board this Thursday,” Mr. Espenilla told reporters in a mobile phone message.
Mr. Espenilla has committed to a “strong policy response” at the Monetary Board’s Aug. 9 meeting in the face of inflation’s uptrend.
Mr. Espenilla’s assessment was shared by economic managers in the fiscal policy side, with a separate joint statement by the Department of Budget and Management, Department of Finance and the National Economic and Development Authority saying that “the current price pressures emanate mainly from supply-side factors.”
“Addressing supply constraints to curb inflation is the utmost priority of the government,” the statement read.
It noted in particular the country’s declining rice stock inventory due to weather disturbances as “part of the supply problem.” It said that in July, rice stocks were at 2.36 million metric tons (MT), 8.2% lower than the 2.57 million MT in July 2017 and 18.8% less than June’s 2.91 million MT, adding the National Food Authority’s rice buffer as “remaining almost depleted.”
To curb inflation, the state economic managers in the statement reiterated their call for the implementation of the fuel subsidy program for public utility vehicles, the approval of a bill that will impose a regular tariff scheme for rice from the current import quota scheme that is expected to slash retail prices of the staple by an estimated P7 per kilogram, and the need to tighten the watch against profiteering.
Alan A. Tanjusay, spokesperson of the Associated Labor Unions-Trade Union Congress of the Philippines, in a statement criticized the government’s and employers’ “lack of social responsibility and social safety net support” for workers and their families. “We were looking forward for employers and companies to provide at least non-cash fringe benefits to their employees at these extraordinary times, but no such thing is happening,” he said.
Given these developments, analysts are betting that the BSP will raise benchmark rates for the third consecutive time, although some are saying that a heftier 50-basis-point (bp) increase may be announced this week to temper inflation pressures.
Monetary policy makers have raised rates in two moves of 25bps each in their May and June meetings in a bid to curb price pressures.
Benjamin Shatil, economist at JPMorgan Chase Bank, said the higher-than-expected inflation reading merits a 50bp increase and further policy tightening in the coming months. “Should price pressures continue to rise through 3Q, the risk would be of further tightening at the Sept. 27 meeting, ahead of the current JPMorgan forecast of 50bps this week and another 25-bp hike in 4Q,” Mr. Shatil said in a market report sent yesterday.
ANZ Research pointed out a “broad-based” rise in prices, with core inflation at 4.5% versus June’s 4.2% pickup. The research group sees a 25-bp increase, but said a more aggressive tightening move is now a “distinct possibility.”
Nomura economists Euben Paracuelles and Charnon Boonnuch “expect BSP to hike by 50bps at its 9 August meeting, taking the policy rate to four percent.”
‘“In addition, we think the policy statement should remain hawkish, with BSP clearly leaving the door open for more rate hikes ahead.”
Rajiv Biswas, chief economist for Asia-Pacific at IHS Markit, said: “With the BSP already having hiked policy rates in May and June, another rate hike is looming on Aug. 9, when the BSP Monetary Board meets again to consider monetary policy settings.”
“The BSP is facing a perfect storm of pressures from rising domestic inflation, a deteriorating balance of payments position and peso weakness during H1 2018 due to the impact of US Fed rate hikes,” Mr. Biswas noted.
“With many Asian central banks having tightened monetary policy already during 2018… IHS Markit expects the BSP to hike policy rates further during the next 12 months.” — with Elijah Joseph C. Tubayan and Vann Marlo M. Villegas

Headline inflation rates in the Philippines (July 2018)

INFLATION surged faster than market expectations in July to clock a fresh multi-year high, the Philippine Statistics Authority (PSA) reported on Tuesday, increasing the odds of an aggressive interest rate hike from the central bank on Thursday. Read the full story.

Headline inflation rates in the Philippines (July 2018)

Meralco bills rising for 2nd straight month

CONSUMERS will see a P0.0265 per kilowatt-hour (/kWh) hike to P10.2190/kWh in their August electricity bills, Manila Electric Co. (Meralco) said on Tuesday.
This is the second straight month that power rates will increase for the distribution utility’s 6.4 million customers.
The company attributed the higher rates to the increase in the charges in its power supply agreements (PSAs), which pushed up the generation charge, the biggest component of consumers’ monthly bill at nearly 60%.
Meralco said the “slight increase” translates into a rise of P5.30 in the monthly bill of a typical household consuming 200 kWh. The corresponding increase for those using 300 kWh, 400 kWh and 500 kWh is P7.95, P10.60 and P13.25, respectively.
In a press conference, Meralco spokesman Joe R. Zaldarriaga attributed the higher PSA charges to lower average plant dispatch plus higher fuel prices, even as energy prices in the spot market and those from independent power producers declined.
The generation charge for the month increased to P5.3491/kWh from P5.2651/kWh after PSA charges rose by P0.6554/kWh. These power supply deals accounted for 43% of the utility’s requirement in the July supply month.
In contrast, charges from the Wholesale Electricity Spot Market (WESM) slipped by P1.1021/kWh with the absence of “yellow alerts” in the Luzon grid during the month, which could have prompted purchases of costlier power.
Meralco also said despite higher Malampaya natural gas prices after the quarterly repricing to reflect recent movements in global crude oil prices, the cost of power from independent power producers (IPPs) dropped by P0.1690/kWh as average plant dispatch improved.
Power purchases from the WESM and IPPs respectively made up 12% and 45% of Meralco’s requirement in August.
The company said lower ancillary service charges also cut the transmission charge for the month by P0.0803/kWh. Taxes and other charges rose by P0.0228/kWh.
“Meralco’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 37 months, after these registered reductions in July 2015,” the company said in a statement.
It reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges. Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the grid operator National Grid Corporation of the Philippines.
Taxes and other public policy charges like the feed-in tariff allowance are remitted to the government.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls.
Ahead of the announcement, Meralco hosted a briefing in which Australia-based International Energy Consultants (IEC) said the utility’s average tariff had actually slipped by four percent in January 2018 from the same month in 2016, the last time that the consulting firm released its report.
IEC Director John Morris said an “apples-to-apples” comparison covering the same period using data adjusted to present figures in the same currency, showed that Meralco is now ranked 24th among 46 markets covered by the study.
“Meralco’s tariffs have decreased significantly versus large increases in almost all other items of household expenditure,” he said.
The average rate for Meralco during the review period was at $0.1537, down four percent from $0.1603 in 2016 and $0.2199 in 2012. No survey was conducted in 2014.
In peso terms, the average rate in 2018 rose by three percent to P7.77/kWh from P7.54/kWh in 2016, but down 18.8% from P9.57/kWh in 2012. The peso’s depreciation against the dollar was the reason for the different price movement from 2016 to 2018.
Mr. Morris said the average price for the markets included in the survey was $0.1361/kWh, but he noted that many of the lowest cost markets have “significant” nuclear generation, which he said “does not generally include the full cost.”
In Asia, the Philippines has ranked higher in terms of power costs but those with lower rates were enjoying subsidies in the form of cash grants, subsidized fuel or deferred expenditure.
If subsidized markets were excluded, then Meralco’s tariff if 10% lower than the average, Mr. Morris said.
For residential customers alone, the local utility’s rate in peso terms at P8.96/kWh ranked second to Japan’s P12.31/kWh. Singapore, Hong Kong and Thailand rounded out the top five with P8.83/kWh, P6.53/kWh and P6.23/kWh, respectively. The same ranking was recorded in 2016, although Mr. Morris did not give the comparative rates.
The other conclusions reported in the IEC survey are:

• Over the past two years, Meralco’s customers have been among the few in the world that have enjoyed rate reductions, versus substantial increases in some neighboring countries.

• Meralco’s average tariff has decreased by four percent since January 2016 versus an average increase of 12% in the survey. In peso terms, Meralco’s tariff has increased by only 13% despite twin headwinds of significant fuel price increases and a depreciating local currency.

• Meralco’s residential customers have experienced a four percent increase in their monthly bills versus a seven percent increase in consumer price index, since 2016. Residential customers now pay eight percent below the global average and now rank 26th out of 46.

• All of the components of the regulated tariff are judged fair and reasonable, based on comparisons with other markets and versus the true cost of electricity.

“This is an excellent outcome for consumers,” Mr. Morris said, considering that the Luzon power market is unsubsidized and the majority of electricity is produced using imported fuel.
Meralco’s tariff reductions are mainly due to the addition of competitively priced power supply contracts in the generation portfolio.
To ensure that Meralco holds or improves its position relative to tariffs in other markets, it is critical that regulators and legislators focus on facilitating investment in new generation to meet strong demand growth and promote retail competition so that wholesale electricity cost reductions are fully passed on to consumers. — Victor V. Saulon

Philippine business optimism slips but still SE Asia’s second best

BUSINESS OPTIMISM in the Philippines slipped last quarter as against the year-ago level, although the country was still second-best in Southeast Asia, according to new research from Grant Thornton.
In its International Business Report (IBR), the firm said optimism in the country’s economy dipped to 81% of respondents from 88% — reflecting “reaction to the external economic environment, the moderate pace of economic growth and the short-term challenges” — though the latest reading was still eight points more than in 2018’s first-quarter.
But among the five covered members of the Association of Southeast Asian Nations (ASEAN), it said the figures “generally reflect the long-term view that the Philippines is on track towards becoming one of the top 20 economies in the world.”
The Philippines’ second-quarter reading was below Indonesia’s 98%, but better than Malaysia’s 52%, Singapore’s 32%, Thailand’s two percent.
Marivic C. Españo, chairperson and chief executive officer at P&A Grant Thornton, said in a statement: “The record levels of optimism… are undoubtedly pushed upwards by the continued growth of China, a close trading partner for many of the region’s economies.
“But what’s really encouraging to see is the greater focus on regional cooperation since the formation of the ASEAN Economic Community in 2015. Closer ties between businesses will provide the future fabric for growth in the region in the years ahead.”
For the Philippines, the local economic outlook and profitability were also significantly higher than the ASEAN averages, the firm said.
It cited “significant improvements” in major constraints to doing business in the Philippines.
“More and more organizations view regulations and red tape as less of a constraint: IBR ratings on red tape have dropped to a six-year low of 20%,” according to the same press release.
“Transport infrastructure is also reported to have greatly improved: views on transport infrastructure as a hindrance to business conduct have decreased to a six-year low of 14%.”
It also said an increasing number of businesses had reported that the lack of skilled workers is no longer a major constraint to doing business. IBR ratings on the lack of skilled workers have dropped by 20 percentage points to 36%.
Moreover, profitability expectations among Filipino businesses increased by 24 percentage points to 80%.
But it said fewer respondents expect to invest in research and development in the next 12 months, with expectations decreasing by 14 percentage points to 48%.
“There are spectacular growth opportunities for domestic and neighboring markets in Asia,” Grant Thornton said. “Demand and production capacities will continue to grow.”
It said 54% of the Filipino senior business executives who responded to the survey said that they intended to expand their business domestically in the next 12 months.
“Manufacturing has seen an upsurge in recent months, as more foreign investors look at the Philippines as a manufacturing hub in the long term,” it said, adding that more businesses expect to invest in plant and machinery at 70%. — Victor V. Saulon

Gov’t all set for samurai bond sale

THE GOVERNMENT will soon proceed with its planned sale of yen-denominated bonds as it seeks to avail of favorable rates amid strong demand before the Aug. 11-Sept. 9 “ghost month” is well under way, a senior official who asked not to be identified told reporters on Tuesday.
Finance Secretary Carlos G. Dominguez III said separately during 2019 budget deliberations at the Senate on Tuesday that “samurai” bonds will be priced soon.
“We are going to determine within the next week or so what the interest rates will be,” Mr. Dominguez told members of the Senate Committee on Finance on Tuesday.
The Finance chief was asked about the government’s planned offshore borrowings, which he said carried interest rates much lower than what is offered by commercial lenders.
Yen-denominated papers were last sold in 2010, when the government raised ¥100 billion worth of 10-year papers, fetching a 2.32% coupon.
Finance officials expect strong appetite for this year’s offering of samurai bonds as they expect demand to reach $1 billion.
The debt notes will come in three, five and 10-year tenors, according to a Bloomberg report.
The planned offering is expected to come before the so-called “ghost month,” a Chinese tradition that spooks investors from making big bets.
The Bank of Japan also stood pat on policy settings last month, and noted that it will keep its low rate regime “for an extended period of time,” defying a global trend of rate tightening.
Economic managers of the Duterte administration staged a Philippine economic briefing in Tokyo last June.
National Treasurer Rosalia V. De Leon said they talked to 16 Japanese investors — mostly asset managers there — just as authorities were doing paperwork and conducting due diligence for the planned sale.
In May, Ms. De Leon said the Bureau of the Treasury had tapped five Japanese banks to serve as bookrunners and agents: Mizuho Bank Ltd., The Daiwa Bank Ltd., Nomura, Sumitomo Mitsui Banking Corp. and the Mitsubishi UFJ Group.
Bank executives have expressed interest in taking part in the Philippines’ return to the yen debt market, saying they expect strong demand as Japanese investors are looking for places to invest.
The national government borrows from local and foreign sources to fund the increased spending and boost economic activity. The state plans to borrow a total of P888.23 billion this year to plug its budget deficit that is capped at three percent of gross domestic product.
The Treasury raised $2 billion through a global bond sale in January, with half consisting of new money and the other $1 billion raised to pay existing debts. The government also issued $230 million worth of renminbi-denominated “panda” paper bonds in March. — Melissa Luz T. Lopez

Shakey’s profit rises 7% in Q2

SHAKEY’S Pizza Asia Ventures, Inc. (SPAVI) grew its earnings by seven percent in the second quarter of 2018, as higher prices of raw materials tempered the double-digit increase in sales.
In a regulatory filing, the listed casual restaurant operator reported a net income of P212.41 million in the April to June period of 2018, higher than the P198.52 million it generated in the same period a year ago. This followed a 16% increase in systemwide sales — which measures sales from both company-owned and franchised stores — to P2.4 billion during the period.
Second quarter revenues meanwhile picked up 12% to P1.92 billion.
Same-store sales growth (SSSG) stood at nine percent for the three-month period, higher than the two percent increase seen in the same period in 2017.
This pushed SPAVI’s net income seven percent higher to P396 million in the six months ending June, against the P371 million it realized in the same period a year ago, following a nine percent uptick in revenues to P3.69 billion.
Systemwide sales climbed 13% to P4.6 billion, as same-store sales grew by five percent during the first semester. The SSSG for the six-month period matches the high end of SPAVI’s full-year SSSG target growth of 3-5%.
“Despite the slight compression in our margins year-on-year, we remain above average in terms of our profitability metrics and see this as an advantage in weathering competitive headwinds,” SPAVI President and Chief Executive Officer Vicente L. Gregorio said in a statement.
Mr. Gregorio noted the company expects challenges for the remainder of the year.
“However, we do expect managing higher input costs, a depreciating peso, and continuously rising inflation to remain a challenge in the short to medium term,” Mr. Gregorio said, saying that there are opportunities to maximize scale, increase efficiencies, and manage overhead costs in order to meet its double-digit earnings growth target for the year.
The SPAVI executive added the company will be launching new campaigns during the coming holidays to take advantage of the positive consumer sentiment, as well as to offset the seasonal slowdown caused by the rainy season.
SPAVI ended the first half of 2018 with 217 stores in the country after opening five new outlets. It looks to close the year with a total of 228 stores locally.
Overseas, the company has recently opened its first outlet in Dubai, which also marks its second international store after Kuwait. SPAVI is banking on the large population of overseas Filipino workers in these markets to drive sales.
Shares in SPAVI fell by 0.31% or four centavos to close at P13.06 each at the stock exchange on Tuesday. — Arra B. Francia

Ayala Land mulls P5-billion bond issuance

By Arra B. Francia, Reporter
AYALA LAND, Inc. (ALI) is mulling the issuance of P5 billion worth of bonds before the end of 2018 to partly finance its capital expenditure for the year.
ALI Chief Finance Officer Augusto Cesar D. Bengzon said the company may issue the bonds out of its shelf registration from the Securities and Exchange Commission, as they have P8 billion left from the three-year program.
“(We can issue) maybe another P5 billion… We still have remaining P8 billion in our shelf registration. We can use it,” Mr. Bengzon said in a media briefing in Makati City on Monday.
The listed property developer earlier said it plans to raise P20 billion from a combination of bilateral loans from banks and retail bonds. So far, it has raised P15 billion — with P10 billion through the bond market and P5 billion from bilaterals.
“We’re still assessing the market. Technically, there is no urgency,” Mr. Bengzon said.
The funds will potentially be used to finance part of ALI’s P110.8-billion capex for this year. This year’s capex is 21% higher than the P91.4 billion it spent in 2017, as ALI wanted to take advantage of the strong demand for residential properties in the country.
ALI has already spent P48.4 billion from its capex during the first six months of the year. Residential projects cornered bulk of the spending at 45%, followed by commercial leasing projects at 25%. Fifteen percent was used for equity investments; 10% went to land acquisitions, while the remaining five percent was for real estate development.
Noting the capex rollout was slow during the first half, Mr. Bengzon said the company will still be able to spend what it has set aside. “We pushed back some project launches, but we will be able to catch up on that in preparation for next year,” ALI Senior Vice President and Head of Residential Business Group Robert S. Lao said.
The company targets to launch P125 billion worth of projects this year, consisting mostly of residential and offices for sale under its AyalaLand Premier, Alveo, Avida, Amaia, and BellaVita brands.
Mr. Lao said this will allow ALI to book a 13% growth in reservation sales for the year. In the first six months of 2018 alone, the company managed to book a 17% increase to P72 billion in reservation sales. This means that ALI sold P12 billion worth of projects each month this year.
ALI launched five residential projects for the first half, namely The Residences at Azuela Cove in Davao, Cerilo Phase 4 and 5 in Laguna, Callisto Tower 2 in Circuit Makati, Ametta Place Phase 3 in Pasig, and Avida Towers Abreeza Tower in Davao.
ALI’s net income attributable to the parent grew by 18% to P13.5 billion in the first six months of 2018, on the back of a 25% increase in revenues to P80.4 billion.
Shares in ALI went up by 0.12% or five centavos to close at P42 each at the stock exchange on Tuesday.

Amendments to Corporate Code approved by Senate on 3rd reading

By Camille A. Aguinaldo
THE Senate on Tuesday passed on third and final reading the bill amending the 38-year-old Batas Pambansa Bilang 68 or the Corporation Code of the Philippines.
Senate Bill No. 1280 introduces the “one-person corporation” to address problems in filling up the current requirement of at least five stockholders for a corporation. It also grants perpetual term as the default option for corporations.
The Corporation Code of the Philippines provides the rules and regulations in the establishment and operation of stock and non-stock corporations in the country.
The bill was approved with 20 affirmative votes, zero negative vote, and no abstention. The proposed measure was authored and sponsored by Senate Minority Leader Franklin M. Drilon and co-sponsored by Senate Majority Leader Juan Miguel F. Zubiri.
In a statement, Mr. Drilon said the measure will establish a more business- and investor-friendly environment in the country.
“We must provide an environment conducive not just to big businesses, but make the corporate vehicle an appealing prospect for start-ups and entrepreneurs,” he said.
Mr. Drilon also said the bill’s provisions would ensure ease of doing business, prioritize corporate and stockholder protection, instill corporate and civic responsibility, and strengthen the country’s regulatory corporate framework.
The “one-person corporation” amendment to the bill prevents the current practice of certain investors to name even their household members and hired help as incorporators to comply with the present rule.
The measure also adopts an electronic filing system for reportorial requirements and simplifies the current name verification system to allow seamless automation of name registration for corporations.
It also permits the use of alternative modes of communication in corporate meetings, so that stockholders and directors can attend through remote communication and in some cases, can cast votes “in absentia.”
Mr. Drilon added the proposed amendments to the Corporation Code will make the country a “viable investment destination.”
“If we are to keep up with the rest of the financial world, we need to codify best international corporate practices and address the archaic bottlenecks in the areas of starting a business and protecting minority investors,” he said.

Rental revenues boost GERI’s first-half profit

GLOBAL-ESTATE Resorts, Inc. (GERI) posted an 18% attributable profit growth during the first six months of 2018, driven by a surge in rental revenues after it opened its first full-scale mall in Laguna.
In a statement issued Tuesday, the leisure and tourism estate developer of tycoon Andrew L. Tan saw net income attributable to equity holders of the parent climb to P794 million for the first semester, compared to the P670 million it realized in the same period a year ago.
Consolidated revenues likewise rose five percent to P3.3 billion for the period.
GERI attributed the positive results to the performance of Southwoods Mall, its first full-scale mall inside its tourism estate Southwoods City in Laguna. Rental revenues jumped by 218% during the January to June period, reaching P177 million compared to the P56 million recorded in the same period a year ago.
“After launching Southwoods Malls, we are gearing up to launch more lifestyle malls and retail concepts in the coming years,” GERI President Monica T. Salomon was quoted as saying in a statement.
By 2020, the company expects to expand its rental income to reach P650 million as it opens more lifestyle malls.
GERI also reported an eight percent growth in residential sales to P2.8 billion in the first half.
GERI currently has residential projects inside its integrated lifestyle communities and townships, namely Alabang West in Las Piñas City spanning 62 hectares, Hamptons Caliraya surrounding Lake Caliraya in Laguna covering 300 hectares, the 1,200-hectare Twin Lakes in Tagaytay, the 150-hectare Boracay Newcoast in Boracay Island, the 173-hectare Barbara Heights in Iloilo, and the 640-hectare Eastland Heights in Rizal.
“The ‘integrated lifestyle community’ concept resonates well to our market in pushing our residential offerings. We expect to see more of this pioneering concept in our other properties soon,” Ms. Salomon said.
GERI is part of Mr. Tan’s Alliance Global Group, Inc., which also has core investments in liquor through Emperador, Inc., gaming through the operations of Resorts World Manila, and quick service restaurants through Golden Arches Development Corp. — the local franchisee of the McDonald’s brand.
Shares in GERI gained two centavos or 1.65% to close at P1.23 each at the stock exchange on Tuesday. — Arra B. Francia

Bedazzled by bamboo

ANAT HEIFETZ uses various painting techniques to make bamboo poles look like rolls of fabric. — NICKKY FAUSTINE P. DE GUZMAN

BAMBOO can be boring — a run-of-the-mill construction material, it doesn’t command attention unless when used as material for something unusual like bicycles or sunglasses. But for artist and fashion designer Anat Heifetz, the simple yet sturdy plants make for an interesting canvas.
In her ongoing exhibition at the Ayala Museum called Bamboo Road: Tel Aviv-Manila, Ms. Heifetz dressed up more than 400 bamboo poles and transformed them into pretty pieces of art.
Painted in black and white (“because I think black and white have all the colors inside them,” she said), Ms. Heifetz carefully drew different patterns on every piece of bamboo.
“I made all the drawings by myself. The ideas are from the fabrics that I remember using from my past, like laces, knits, marble-like images…,” Ms. Heifetz, a Manila-based Israeli artist and fashion designer, told BusinessWorld.
Finishing the bamboo poles depends on the patterns she chooses or how small and delicate they are. They from two weeks to two months to finish.
From a distance, the poles look like rolls of fabric, which is what the artist is aiming for. But when you look closely, you realize that they are painstakingly hand-painted.
“I love bamboo and it always reminded me of fabric rolls so I decided to draw on the bamboo some fabric patterns and textures,” Ms. Heifetz said at the sidelines of her exhibit’s opening.
On view until Aug. 19, the exhibition does not only showcase the artist’s skill, but also commemorates Israel’s 70th anniversary of independence and the 60th anniversary of the Israel-Philippines Friendship Treaty.
A marriage of Filipino and Israel culture, the center piece of the exhibit is a sawali (woven split bamboo mat used as walls in nipa huts) hand-painted a design inspired by the tapestry-woven kilim carpets found in Central Asia, South America, North Africa, and Mediterranean.
“In Israel, my parents had a big kilim carpet hanging at the entrance of the house. I love this carpet, it has been part of my life throughout. So I decided to recreate kilim with sawali. I thought I’d paint on the sawali with kilim pattern to combine my two homes, Tel Aviv and Manila,” she said.
Ms. Heifetz moved to the Philippines in 2015 when her husband found work here. She then started looking for a way to express her artistry and love for bamboo as a material. She met a group of talented artists in Mandaluyong where they enjoyed weekends of art, music, and, local food. Her studio there is her second home.
“The transfer from textile to bamboo was natural for me,” she said. The artist tried many techniques to jazz up a bamboo, and discovered that acrylic paint work well. The results are seen in her exhibit.
To add textures to her work, Ms. Heifetz worked with wood carvers from Paete, Laguna — she gave them patterns to carve into the bamboo poles. Their collaborations are also seen in the exhibition. — Nickky Faustine P. de Guzman

Revolution Precrafted expands into Peru

REVOLUTION Precrafted on Tuesday said it has signed a deal with Builders and Realtors for the supply of residential units on a 10-hectare property in Piura, Peru, further expanding its footprint in South America.
In a statement, the global supplier of pre-fabricated homes said Builders and Realtors will initially buy 50 “luxury curated country villas” with sizes ranging from 200 to 300 square meters (sq.m.). The agreement provides for the supply of 90 villas.
“There is a substantial demand for quality homes in Latin America. We believe that there is a great opportunity for the company to further increase its presence in the region. We hope to be present in 3-5 more countries from Latin America before the year ends. We will be back to complete our LatAm (Latin America) roadshow,” Revolution Precrafted Founder and CEO Jose Roberto “Robbie” R. Antonio was quoted as saying in a statement.
The company said the luxury villas will be priced from $140,000 to $310,000. The houses will be built on lot sizes ranging from 700 to 1,000 sq.m.
Revolution Precrafted said the Peru-based company is also planning to build a prefabricated country-inspired hotel resort.
The resort will have 30 rooms with sizes starting at 40 sq.m., as well as an indoor parking area for over 70 vehicles.
Peru is Revolution Precrafted’s 16th international market, and the fifth in South America after Brazil, Ecuador, Puerto Rico, and El Salvador.
Revolution Precrafted is aiming to be present in 25 countries by the end of 2018. It is currently constructing projects in United Arab Emirates, Myanmar, Japan, Indonesia, Ecuador, Puerto Rico, Guyana, Jamaica, Trinidad and Tobago, the Bahamas, Spain, and Cyprus.
In the Philippines, the company is developing units for Batulao Artscapes in Nasugbu, Batangas and the Revolution Flavorscapes in Mexico, Pampanga. — CRAG

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