Telecom venture talk buoys best property stock
NEW YORK: The performance of the world’s best property stock this year may have nothing to do with real estate.
The Philippines-based Golden Haven Inc has surged more than 1,400 per cent this year, outpacing more than 2,700 other real estate stocks globally. While the builder’s recent push into the affordable housing market is seen as part of the reason, an even bigger factor appears to be speculation that founder Manuel Villar may use it as a vehicle to become the country’s newest telecommunications carrier.
The shares rose as much as 20 per cent on Friday to a record, adding to a rally that has driven the company’s market valuation to more 200 billion pesos (RM14.86 billion), overtaking all of the Philippines’ property stocks except SM Prime Holdings Inc and Ayala Land Inc.
The Philippine government has invited bids for frequencies as part of its effort to open the telecommunications sector to new players beyond PLDT Inc and Globe Telecom Inc. President Rodrigo Duterte plans to choose a third carrier in May.
Villar is a former senator with deep family ties in politics as well as holdings in various propertyrelated companies. His wife Cynthia is a current senator and their son Mark is the Philippines’ public works secretary. Another son, Manuel Paolo, is chief executive of Vista Land & Lifescapes Inc, a home and mall builder.
The family’s Streamtech Systems Technologies Inc is seeking a franchise from Congress to initially provide fixed-line broadband services to residential communities developed by Villar group companies.
Golden Haven is in the process of changing its name to Golden Bria following its acquisition in December of Villar group lowcost housing firm Bria Homes Inc. A market hunch that it could be used as the listed vehicle for the family’s potential telecom foray have helped drive its shares as well as those of another Villar holding, Starmalls Inc, which has surged 160 per cent.
“Until the real story is out and known, the market speculation isn’t going to stop as everything will be possible,” said James Lago, an analyst at PCCI Securities Brokers Corp.