NEWS

By James A. Loyola | Published Sep 28, 2026 12:00 am | Updated Sep 26, 2026 05:08 pm

PNB Holdings Corp. (PHC), the prime real estate unit of the Lucio Tan (LT) Group, intends to initially fund the massive phased development of its 8,000-square-meter (sqm) property in Buendia, Makati City, with internal funds as well as some borrowings.

In an interview last week, PHC Chief Financial Officer (CFO) Ponciano S. Carreon Jr. said the firm currently has assets with a book value of ₱51 billion and an appraised market value of up to ₱89 billion.

“We don’t have a bank loan. We have ₱51-billion assets, we have zero bank loan. Of the ₱51-billion assets, solid, hardcore real estate amounts to ₱47 billion and we have more than ₱3 billion in cash,” he noted.

Carreon said, “If we will develop it, then it will be funded in terms of equity from our shareholders. And a little borrowing. It will be a mix of internal funds, borrowing, and equity.”

Since the firm has zero debt, it can also borrow money, if necessary, although it has internally set a maximum debt-to-equity (D/E) ratio of 30 percent over the long term.

“This is our internal guideline. Our internal guideline for our long-term framework. We won’t take more than 30 percent D/E ratio. We’re not saying that we’re going to take that all. Because it’s too big. If I take 30 percent of ₱50 billion, it’s ₱15 billion. I don’t know how many buildings [that amount can build]. At ₱3 billion to ₱5 billion, that’s big. That’s a massive building,” he pointed out.

Carreon stressed, “We’re not saying that we will max out that. If at all, if we will need to have simultaneous [construction] and we will have some opportunistic acquisition. We will not go beyond 30 percent of our equity.”

Meanwhile, PHC has a commitment to the Philippine Stock Exchange (PSE) to increase its public float from the current 15 percent to 20 percent, although it is already compliant with the minimum public ownership (MPO) rule at its market capitalization of more than ₱50 billion.

Since the firm is required under PSE listing rules to conduct a follow-on offering (FOO) a year after listing by way of introduction, PHC can opt to sell new shares, or its principal shareholders can sell secondary shares.

This is aimed at increasing the liquidity of PHC’s stock.

But Carreon said the five-percent increase in public float will translate to an offering of just 2.3 billion to 2.4 billion shares, which will raise only about ₱3 billion at the current market price.

“It will also be good for the public. Because 15 percent is too low in liquidity. If someone wants to enter, no one can get in,” Carreon explained.

He said that if the market price is low, the company will not sell new shares, and it may instead be the firm’s principal shareholders who will sell secondary shares to boost the stock’s liquidity.

While the firm is not yet planning a large capital expenditure (capex) for the Buendia construction, Carreon said it will continue to optimize the use of the two properties that it currently has on Ayala Avenue in Makati and Macapagal Boulevard in Pasay City.

“It’s just a matter for us to optimize them, repurpose them, invest a few hundreds of millions maybe or a billion or so. And it will give a very good growth for the coming months while we’re waiting for the market to come forward to recover,” he said.

Source: Manila Bulletin