Richest Philippine tycoon eyes townships, exits low-cost homes

MANILA (Bloomberg): Billionaire Manuel Villar (pic) plans to begin developing and pre-selling properties in 44 so-called townships within a year, in a shift away from low-cost homes that helped him become the richest tycoon in the Philippines.

The mixed-used projects, located in 23 cities and with a combined area of 1,438 hectares, could boost Vista Land & Lifescapes Inc. worth, which should be three times its current value, said Villar, 72 and the company’s founder and chairman.

Developing a hectare in the townships could cost 1.36 billion pesos (US$26 million), he said in a briefing on Thursday (April 21).

"It’s now time to develop these properties,” said Villar, whose net worth is $8 billion, according to the Bloomberg Billionaires Index. The townships will host residential towers, offices and commercial space in undeveloped plots in Vista Land’s properties that were accumulated in more than three decades.

The move forms part of efforts toward building more residential towers and away from housing that cost 550,000 pesos per unit, Villar said. Vista Land won’t sell homes priced at less than 2.5 million pesos a unit beginning next year, he said.

The shift to building residential towers -- which accounts for less than 5% of total revenue -- should have started as early as five years ago, owing to rising incomes and values of the properties where the assets are, Villar said.

Vista Land, however, will continue sell house and lots, particularly in areas where cost of land remains low, said Villar, who began developing mass housing projects in the 1970s as an offshoot of a gravel and sand business.