Media

Premiere Horizon seeks to raise P1 billion for Capex

BusinessWorld Online (January 11, 2017)

PREMIERE HORIZON Alliance Corp. (PHA) is looking to raise P1 billion in the middle of the year to advance its infrastructure and tourism play.

The listed company will undertake a private placement and stock rights offering to cover its capital spending requirement amounting to P1 billion this year, Vice-President Ana Liza G. Aquino said in a telephone interview.

“Actually, that’s scheduled in second to third quarter. For the stock rights offer, we’re still complying with PSE (Philippine Stock Exchange) requirements. Definitely within the year, we will be able to raise the P1 billion,” Ms. Aquino noted.

PHA is still finalizing the terms of the planned fund-raising exercises. For the private placement, it intends to issue securities to several rather than a single investor.

PHA will disburse around P400 million of the proceeds to subsidiary West Palawan Premiere Development Corp. (WPP) for the development of a mountain and beachside lifestyle community in Puerto Princesa City.

“WPP is in the final planning stages for an integrated township development that brings together serene mountainside and beachfront resorts as well as residential projects located in the emerging West Palawan corridor,” PHA noted in a disclosure to the PSE on Tuesday.

The company unveiled the 576-hectare development spanning several destination white sand beaches in the Bacungan-Napsan area in Puerto Princesa in June last year.

When it announced the project, PHA owned 512 hectares in Bacungan and set aside P50 million from the P400 million raised in a placement of exchangeable notes in October 2015 to initially develop the property.

PHA then raised another P120 million through a private placement completed in December. It sold a 15% stake in WPP based on the entire project’s valuation at P800 million.

The listed company also disclosed last month the purchase of an additional 5 hectares of beachfront property in Nagtabon Beach and ongoing efforts to draw a comprehensive tourism development plan for the area.

Engineering, consulting and project management service provider AECOM is expected to finish the master plan of WPP within the month. The environmental scanning and best land use study undertaken by Vertex Land Development management Consultancy, Inc. and Leechiu Property Consultants, meanwhile, was slated for completion last December.

“PHA will bring in its infrastructure subsidiary, Redstone Construction and Development Corp. (RCDC), to provide cost-effective site and land development expertise to the tourism project,” according to a disclosure to the stock exchange on Monday.

The company earmarked P200 million for the infrastructure development projects of RCDC, which plans to broaden its operations to include non-mining construction activities starting with the execution of development plans for WPP.

In addition, PHA will consider business partnerships and acquisitions in the cement, iron, water and energy sectors. It budgeted P400 million to finance such transactions.

PHA divested its 32% stake in First Ardent Property Development Corp. in March to focus its core businesses toward the countryside. In this light, the company has invested in businesses addressing gaps in the mineral resource development, food security, tourism and housing sectors.

In the first nine months of 2016, PHA booked a 52% year-on-year increase in net income to P150.4 million from P98.8 million, following a 33% rise in revenues to P879.4 million from P660.1 million.

Shares in the company jumped by half a centavo or 1.02% to 49.5 centavos each on Tuesday, tracking a market-wide uptrend triggered by stronger-than-expected economic data from China.


Premiere Horizon to raise P1B for infra deals

Rappler.com (January 10, 2017)

Its unit, West Palawan Premiere, is spending around P400 million for its foray into the fast-growing tourism sector through a township development in Palawan

MANILA, Philippines – Premiere Horizon Alliance Corporation (PHA) on Tuesday, January 10, said it will raise P1 billion this year to finance its major projects related to tourism and infrastructure.

In a disclosure to the local bourse, PHA said tourism development unit West Palawan Premiere Development Corporation (WPP) is spending around P400 million for its foray into the fast-growing tourism sector through a township development in Palawan.

Already in the final planning stages, the planned integrated township development offers serene mountainside and beachfront resorts as well as residential projects located in the emerging West Palawan corridor.

The project is master planned by AECOM, the world’s leading land use design firm.

The group recently announced that real estate veteran Danilo Antonio, who has over 30 years of experience in the property sector, will head the WPP.

WPP has also acquired an additional 5-hectare beach front property in Nagtabon Beach and is finalizing a comprehensive development plan that will complement the WPP development’s landmark beachfront loop attractions.

Nagtabon Beach is about 35 minutes away via fully cemented roads from Puerto Princesa City International Airport.

PHA infrastructure subsidiary, Redstone Construction and Development Corporation (RCDC), is planning to spend P200 million expansion budget for its infrastructure development projects.

RCDC plans to broaden its operations to include non-mining construction activities starting with the execution of WPP’s site development plans.

For 2017, PHA is also currently evaluating several business partnerships and acquisitions in the cement, iron, water, and energy sectors, supported by a financing budget of up to P400 million.

“For 2017 and in the next two years, we are focused in our efforts of creating a significant impact on the country’s growing tourism estates development and in infrastructure that will increase and sustain PHA’s shareholder value,” PHA president and chief executive Augusto Serafica Jr said.

Serafica said the company’s major projects for 2017 strongly support the current administration’s thrust on sustained countryside development with tourism and infrastructure playing major roles. – Rappler.com