Strategic partner not ‘crucial’ to Ortigas’ future, says exec

MANILA, Philippines – The Ortigas business group can still afford to pursue its real estate expansion plans with or without a joint venture deal with two eager suitors: the Ayala and Sy groups.

On Thursday, January 31, Ortigas & Co senior vice president and chief finance officer Emmanuel Rapadas told reporters the holding firm still has access to financing for its expansion plans.

“We have a pretty solid balance sheet in the next 5 years. Even without a strategic partner, these things can be done,” he said.

“Under our current business plan, we can do it ourselves. We’ve been doing it. The suppliers of credit are eager to help us,” he added.

Members of the Ortigas family are in separate talks with Sy-led SM Investments Corp. and Ayala Land, the country’s biggest real estate players.

The Ortigases have yet to resolve who among themselves will make the final call and which business group to form a joint venture deal with.

“It is still status quo. Nothing has happened. The two families are still negotiating with no timetable set,” Rapadas said.

While the ownership issue among the Ortigases is pending, Rapadas said new projects are underway.

New office buildings within the Frontera Verde complex in Ortigas will be launched this 2013. It features campus-type office buildings, catering mostly to the business process outsourcing firms.

The condominium projects within Greenhills Shoppin Center and within the 10-hectare Capital Commons in Pasig City are also in the pipeline, Rapadas added.

These residential projects will play a role in reversing the group’s retail-heavy portfolio. Residential is expected to account for up to 60% of total sales, higher than the current 40% share. – Rappler.com