[ Published by : manilatimes.net ]
By Likha Cuevas-Miel, Reporter
Listed Concrete Aggregates Corp. has sold its Quezon City property to one of its owners, the Ortigas & Co. Limited Partnership, which plans to develop the land into a residential community.
The firm, which is 73 percent owned by OCLP, disclosed it signed a deed of sale with the real estate developer for the 12.47-hectare property in Longos, Bagumbayan, Quezon City, for P1.13 billion. Down payment for the property is P150 million with the balance to be paid in 40 equal quarterly installments at 6-percent interest on the principal.
In addition to developing the newly acquired property into a residential community for P12 billion, as disclosed last year, the Ortigas group will build four business process outsourcing office buildings in Tiendesitas complex, one of its development projects within Frontera Verde in Pasig City.
Meanwhile, Concrete Aggregates has sold the right to operate and own assets of its quarry in Angono Rizal to Republic Cement Corp. and its largest shareholder, Lafarge Holdings (Philippines) Inc., last year. Under the memorandum of agreement, Republic would acquire 60 percent, or 156 million shares of the new company worth P402 million and the balance or 104 million shares would be bought by Lafarge for P268 million so that they can own the assets and enter into the quarry operating lease agreement with CA.
The new company acquired by the Filipino-French consortium in turn would pay CA about P260 million for the assets that include crushing plants, machinery, quarrying equipment among others that would be transferred to it.
CA earlier said that the use of the proceeds from the asset disposal are not yet determined by the board. The cement firm, on the other hand, said the half of the funds used to buy the stake in the new CA company would come from internally generated cash and the rest would be borrowed from banks.
At end-September last year, CA’s profits grew by threefold to P19.86 million compared with the same period in 2006 due to the 12 percent to P256.57 million increase in sales volume brought about by increasing real-estate construction within Metro Manila, rehabilitation of the South Luzon Expressway and exports to the Pacific islands.
In its latest financial report, the company said sales would grow further in line with the increase in real estate activities together with the rise of large-scale infrastructure projects by the government In addition, the company expects its sales to be boosted by the growing export market in the Pacific Islands and the improvement of its in-house mechanical capability.
[ Published by: manilatimes.net ] February 5, 2008
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