Tan property firm reports loss; Cebu resort disputed

Lucio Tan’s listed property firm reported more than P19 million in losses in its first two months as a real estate developer, reversing the company’s profits when it was still an oil exploration firm. Eton Properties Philippines said operations for the fiscal year ending April 30 resulted in a net loss when it revalued its foreign currency-denominated assets. As a result, foreign exchange losses increased by nearly 80%. Eton Philippines came into being last February 21 when Mr. Tan signalled his entry into the property development business and maneuvered a backdoor listing for Eton Philippines, named after the tycoon’s China-based property firm, Eton Properties. The listed Balabac Resources and Holdings, Inc. became Eton Philippines, with its purpose changed to real estate development from a holding company with interests in oil exploration. Balabac earned nearly P10 million in profits last year. Eton Philippines said assets declined slightly to P369.29 million from P370.54 million as of April 30, 2006, mainly due to less investments available for sale. "[Eton Philippines] has substantial [competition] in the real estate industry but the company’s laurels lie on the reputation of the Lucio Tan group of companies [as well as] quality, affordability, modern and [state-of-the-art concepts, and the location of properties for development]," it said. Mr. Tan has long been been in real estate, though Landcom Realty Corp. which acquires and manages properties for Mr. Tan and his firms. - Lovely Nica P. Lee/BusinessWorld