Filinvest Land Sets Aside P20 Billion For This Year’s Projects

Filinvest Land Sets Aside P20 Billion For This Year’s Projects

Filinvest Land, Inc. (FLI) will spend P20 billion this year to sustain the growth of its existing residential and commercial businesses, according to a BusinessWorld report. Ana Venus A. Mejia, FLI treasurer and deputy chief financial officer, said the company has set aside P20 billion in capital expenditures (capex) this year, but declined to provide the actual spending last year. In August, the Gotianun-led developer said its capex for 2016 may be lower than the programmed spending of P24 billion in 2015. FLI is bringing to the market new projects valued at P14.4 billion this year, including three new medium-rise building projects and two additional buildings in existing projects. Aside from the medium-rise buildings, FLI has 12 horizontal residential projects with an estimated value of about P7.2 billion and two high-rise mixed-use buildings with an estimated value of P4.9 billion. As part of its plan to triple the gross leasable area (GLA) of its business process outsourcing office buildings by 2019, FLI is targeting to complete two more office buildings – Vector 3 with a GLA of 36,345 square meters (sqm) in Northgate Cyberzone and Pasay Cyberzone with a GLA of 36,807 sqm. For its retail portfolio, the property company is adding another 46,705 sqm to the GLA of Festival Supermall at Filinvest City in Alabang, Muntinlupa, maintaining its position as the biggest mall in southern Metro Manila. The Il Corso lifestyle strip, a retail project in South Road Properties in Cebu, will contribute a GLA of 35,000 sqm when completed. FLI has started the construction of malls in Tagaytay City and at its Princeton Heights residential project in...
Managing Succession Issues

Managing Succession Issues

Succession is one of the realities of business. It is always a challenge to choose the next in line. Of course, management is always expected to have a protégé that would assume the top position when the time comes.Family in Business magazine provides tips to guide entrepreneurs to have a smooth transition. First, develop a pool of potential and qualified successors. Possessing a foresight is quite important for the enterprise in preparation for the long haul. Moreover, the leaders must have a roadmap on succession from day one of the family enterprise. Meanwhile, the leadership must develop the benchmarks for choosing the right successor. Moreover, the pool should also include cousins to give the management a wider choice. It is a must for the successor to be informed about the company’s assets, overall performance and direction through proper valuation. Family members should be involved in discussing business matters through meetings, family gatherings and other related activities. These interactions would enable the family members to plan for the business. FIB believes accountability is important. There should term limits for the leader. In case the successor lacks some skills in running the organization, FIB recommends that the committee provide him or her necessary tools and needs for the individual’s development. Moreover, FIB believes an enterprise must provide assessment tools to determine if the candidates are ripe and deserving to be catapulted to the top. It is a challenge for a family business because the candidates have not proven their mettle on a national level. Management, ownership and knowledge are important elements in succession. Nevertheless, transmittal of knowledge is the most crucial because this...
Ayala Corporation Eyes Water Utility, Power And Real Estate Opportunities In Indonesia

Ayala Corporation Eyes Water Utility, Power And Real Estate Opportunities In Indonesia

The Philippines’ oldest conglomerate, Ayala Corporation, is tapping the capital market to refinance its maturing obligations as it sets sight on opportunities in Indonesia, a BusinessWorld report said. The Ayala board approved the shelf registration of P20 billion bonds to cover its funding requirements until 2019, the company said in a disclosure to the stock exchange. Of the total, about P10 billion-15 billion may be issued in the third quarter that will be used to refinance debt maturing in April next year, Ayala chief finance officer Jose Teodoro K. Limcaoco said in a briefing. “We think the markets are conducive. Elections will close the window,” he said. But the Ayala group is upbeat it can sustain last year’s growth momentum. Net profit rose by a fifth to P22.28 billion in 2015, achieving its goal of earning P20 billion a year ahead of plan. “We think the economy is in great shape. We think consumer confidence remains, so we are bullish in 2016. We don’t see why we should be worried,” Limcaoco said. Ayala is earmarking P174 billion in combined capital expenditure this year – higher than the record P130 billion spent last year – to support the growth of its businesses. Ayala managing director Paolo Maximo F. Borromeo said the company is exploring opportunities in Southeast Asian countries that have healthy economies. Borromeo said Ayala is particularly interested in Indonesia, specifically in water utility, power and real estate, given the nation’s huge market, noting that Manila Water Co. Inc. has sent a business development team to Indonesia. “We are making a more conscious effort to go international and our focus will...
When Young Family Business Owners Make Financial Mistakes

When Young Family Business Owners Make Financial Mistakes

When you’re busy in your family business, you sometimes neglect your personal finances, especially when you’re young. This should not happen in the first place because it’s your survival. Here are how to avoid common personal finance mistakes. 1. Over investing in the business To make the business look more professional or impressive, young entrepreneurs may spend their savings too freely. Maybe they will lease ritzy offices or purchase expensive equipment. “Overspending on business expenses that aren’t absolutely necessary can quickly erode your personal finances,” says Alexa von Tobel, founder and CEO of LearnVest.com, an online personal finance resource for women. It can be easy to burn through your savings before you even have a product or service to sell, she says. Spend your money on building a good product and get in the market. One can always lease equipment instead of purchasing an expensive one outright or make do with an old one but still operational. The key is proper maintenance of machines. 2. Cutting corners on some transactions Young entrepreneurs will often cut corners on legal and accounting advice. Maybe they know a lawyer or finance guy so they ask if they can help them get licensed or take a look at their books. But those moves can backfire. Hire someone who is an expert in the specific field that you need. One accounting mistake can lead to paying far more in personal income taxes than you should. And when personal finances are in disarray, it can scare off potential investors and force you to sink even more of your own money into the business. 3. Not paying...
Aboitiz Owned AP Renewables Inc. to Issue The First Climate Bonds in Asia

Aboitiz Owned AP Renewables Inc. to Issue The First Climate Bonds in Asia

Aboitz Power has announced that its subsidiary, AP Renewables Inc. (APRI), has signed an omnibus credit facility of P12.5 billion, a BusinessWorld report said. The agreement was signed with the Asian Development Bank (ADB), Bank of the Philippine Islands (BPI) and ADB’s trust fund Credit Guarantee & Investment Facility. Publicly listed Aboitiz Power is owned by the Aboitiz family. The credit facility includes a P10.7-billion ($225 million) local currency bond and a P1.8-billion ($37.7 million) direct ADB loan. ADB’s credit enhancement comes in the form of a guarantee of 75 percent of principal and interest on the bond. “The issuance was certified as a Climate Bond in December 2015 by the Climate Bond Initiative and is the first issuance of its kind in Asia,” Aboitiz Power said. BPI Capital Corp. acted as the lead arranger and bookrunner while BPI Asset Management and Trust Group was appointed trustee and facility agent. Aboitiz Power said the proceeds will be used to finance the partial redemption of APRI’s redeemable preferred shares and the partial funding of its operating expenditure and future rehabilitation requirements. In a separate statement, the ADB said the funds will be used for APRI’s Tiwi-MakBan geothermal energy facilities. “The successful use of credit enhancement for Tiwi-MakBan reflects our evolving strategy to make creative use of ADB’s expanding balance sheet to support infrastructure investment in Asia and the Pacific,” said Todd Freeland, director general of ADB’s private sector operations department. “Credit-enhanced project bonds offer an attractive alternative to bank financing and long-term capital can help close the region’s infrastructure gap,” he added. Liza Montelibano, Aboitiz Power chief financial officer and first vice president, said the...