THE owners of real-estate developer Landco Pacific Corp. (Landco) said Monday the growth prospects of the company remain on track even with the ongoing talks regarding a potential change in its ownership.

Landco, which is into the development of high-end leisure, urban, and hometown communities, hotels and resorts, malls and central business districts (CBD) complexes, is 51-percent owned by listed Metro Pacific Investments Corp. (MPIC) with the remaining 49-percent owned by AB Holdings Corp. (ABHC) and the Xerez-Burgos family.

Alfred Xerez-Burgos Jr., vice chairman of ABHC, said the company is now looking for an investor to raise funds to acquire MPIC’s share in Landco. Once they are able to do that, he said they will propel Landco to achieve its business plan.

On the other hand, if MPIC buys out ABHC’s share in the property firm, it would justify the move to increase its equity in Landco since it will now be of significant size to be more competitive in the industry.

“Evidence of MPIC’s belief in Landco’s viability is the recent P500-million loan it extended to speed up completion of projects. At this point, MPIC is just rationalizing its investment in Landco given the size of its investment portfolio including infrastructure, utilities and health care,” MPIC president Jose Ma. Lim explained.

MPIC agreed to lend Landco up to P500 million to settle maturing loans and support working capital requirements. Its other purpose is to ensure the faster completion of projects. This infusion is line with MPIC’s desire to build Landco as a major real-estate player.

ABHC, for its part, has the option to raise 49 percent of its share in the short-term loan and exercise its option to buy MPIC’s 51-percent holdings. It has until this November to signify its intent to do so.

“MPIC would like to assure Landco’s other stakeholders that if MPIC buys out ABHC’s stake in Landco, ABHC and the Xerez-Burgos group will retain a 10-percent stake in Landco. At the same time, Mr. Xerez-Burgos and the management team have agreed to stay on to ensure stability and continuity of the business,” Lim said.

“In any scenario, Landco’s growth and sustainability is assured,” added Xerez-Burgos.

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