Anchor Land Holdings, Inc.

ANCHORLAND Holdings Inc. is venturing out of its comfort zone to build a mixed use development in Para–aque.

According to Steve Li, Anchor Land vice-chairman, the Parañaque project that would rise from the company’s 6,200-square-meter property involves two towers with 17 levels each and 700 units.

Besides residences, the condominium would offer space for business process outsourcing (BPO) operations and some commercial establishments in the first floor.

Li said the company is not embarking on BPO office space development just yet since “a lot of them (developers) are already going into BPO,” and Anchor Land has to study carefully whether it would be make good business sense to enter it.

Initial funding for the Parañaque project, which requires the company to shell out P200 million, would come from the proceeds of its planed maiden share sale to the public. The planned initial public offering (IPO) would involve 65 million common shares—or equivalent to 20 percent of the company—with a par value of P1 per share and an offer price of P4.97 to P8.94 per share.

Most of the seed fund would be used to pay for the land which the company acquired from Security Banking Corp. and the first stages of construction.

Anchor Land hopes to net P293 million to P531.7 million from the IPO to help fund its P600 to P650 million capital expenditures this year. Of the total, P300 to P350 million would go to landbanking and the acquisition of a 42-story twin tower commercial and residential buildings project.

1The company is finishing two projects in Manila, particularly the 33-story Mayfair Tower along UN Avenue and the 39-story Mandarin Square in Binondo. Both are expected to contribute P900 million in sales by year-end to allow the company to reach the P160-million forecast profit.

Mayfair Tower is scheduled to be finished by 2009 and construction is estimated to cost around P2 billion while Mandarin would be turned over by the second half of next year and is expected to cost P700 to P800 million.

- Likha C. Cuevas-Miel

ManilaTimes.Net