A. Brown bullish on property sector
Listed holding firm A. Brown Co. inc. said it is bullish on its real estate segment due to the changes in consumer behavior caused by the Covid-19 pandemic.
Robertino Pizarro, the company’s president and CEO, said changing market conditions led to its record real estate reservation sales of P1.58 billion last year. the figure is 50 percent higher than the previous year’s P1.05 billion.
“Our real estate offerings were well positioned to respond to the changing demands of the market especially for the middle-middle, upper middle and premium markets we are serving. Our projects which all highlight healthy, environment-friendly and low-density community concepts were a welcome response to the demands of the market,” Pizarro said.
He said the company will pursue expansion in new business segments, which include the development of a master-planned community in tanay, Rizal. New phases for its existing properties are also in the pipeline, including those in West Highlands in Butuan City; Coral Resort estates in initao, Misamis Oriental; and, teakwood Hills in Cagayan de Oro City.
“For the premium market, on the drawing board is a golf and retirement estate in Manolo Fortich, Bukidnon. the Uptown Metropolis located in the Xavier estates area in Cagayan de Oro City shall feature the shoppe Houses, a Central Business district and residential spaces complementing existing establishments in the area,” Pizarro said.
“With our land bank in strategic areas in Mindanao and Rizal in place, we are looking to sustain our growth in real estate.”
in other segments, A. Brown said it will expand its power generation portfolio to include its unit’s Vires energy Corp.’s combined-cycle floating LNG Power Plant in simlong, Batangas. Another subsidiary irradiation solutions inc. will put up the first e-beam commercial sterilization facility in tanay, Rizal, with construction targeted to commence this year and be completed by the second half of 2023.
A. Brown is also looking at two markets for its AB Bulk Water Co. subsidiary, mainly to supply water to the Opol and Laguindingan corridors as well as the expanding needs of Cagayan de Oro City.
“We expect projects in the Power Generation, irradiation, and Bulk Water segments to be income contributors in the future as they progress in development,” Pizarro said.
during the company’s annual stockholders’ meeting last week, shareholders approved the reclassification of part of the company’s unissued capital to create 50 million preferred shares, to be offered to the public with expected proceeds of up to P1.5 billion.
PNB Capital and investment Corp. has been designated as sole issue manager and lead underwriter for the public offering.