Wenceslao Group objections ‘irrelevant’

One of my friends who bought into the Alphaland Bay City marina project asked me what would happen now that businessman Bobby Ongpin’s Alphaland Corp. (AC) has entered into a settlement deal with the UK-based Ashmore Group. My friend was obviously concerned with the press statement issued several days ago by the Wenceslao Group questioning the transfer of AC’s 50 percent share in the Bay City project to Ashmore (through a newly incorporated entity owned by Alphaland Holdings Singapore and Masrickstar Corp.). 

It can be recalled that AC entered into a partnership with the Wenceslao Group (WG) to develop a 32-hectare property at the Aseana Business Park through the Alphaland Bay City (ABC) Corporation. The partnership went sour, however, after the WG’s reported failure to deliver its commitment to the joint venture. The Wenceslao Group is now insisting that Alphaland had no right to transfer its shares in the joint venture ABC Corp. unless the WG was allowed to exercise or waive its right of first refusal.

Alphaland Corp. disclosed its settlement agreement with Ashmore to the Philippine Stock Exchange early last month. Our spy at the PSE gave us information that the Wenceslao Group’s objections are  “irrelevant and powerless to block” the settlement agreement between Ashmore and Alphaland because the transaction had specific clauses that made it clear the consent of the Wenceslao Group was not necessary to close the deal between AC and the Alphaland Singapore/Masrickstar group. The closing of the settlement deal was not dependent on any agreement between Ashmore and the Wenceslao Group, our Spy source stressed.

It was made clear that all required approvals relative to the execution, delivery and performance of the said agreement that have been obtained beforehand are in full force and effect, the source said, adding that the responsibility and obligation to get the concurrence of the Wenceslao Group (relative to the settlement deal) lies with Ashmore, not Alphaland.

In short, it’s the UK-based fund that the Wenceslao Group has to talk with now regarding the 32-hectare marina project because the property is no longer in the hands of Alphaland Corp. And in case Ashmore and the WG fail to come out with a mutually acceptable agreement, the former simply steps into the shoes previously worn by Alphaland Corp. with regard to the Alphaland Bay City Corp., our Spy source concluded.

Crime spike in Metro Manila

For some reason, there has been a crime spike in the country with Metro Manila registering the highest crime rate – something that the Philippine National Police was reluctant to admit at first. Official statistics released by the PNP showed increased crime incidence for the first and second quarters, with average monthly crime rates going up more than 58 percent. These figures do not even include crimes reported in the barangay level, plus the fact that some police units have been known to “under-report” incidents obviously to give a lower crime rate.

The spike in crimes in many cities, including Makati, is certainly alarming, prompting Mayor Junjun Binay to ask PNP chief director general Alan Purisima for the deployment of additional policemen in his city, saying the current size of the police force is “grossly inadequate” to effectively respond to the rampant criminality, in particular the hold-ups and bag snatchings that have been happening even in broad daylight.

While Makati has a “nighttime” population of close to 530,000, the figure balloons to almost four million during daytime because of the huge influx of employees, business people, students, shoppers, tourists and other transients to the country’s premier financial district. According to Mayor Junjun, there are only 560 police personnel assigned to the city, bringing the ratio of police to nighttime population to 1:945 (one policeman for 945 people). During daytime, the ratio is even worse at around 1:10,700 (one policeman for over 10,700 people).

Sen. Sonny Angara has also noted the alarming surge in crimes, admitting that the number of crimes being reported do not really paint a real picture of the situation which by itself is already alarming with a murder committed every hour, a robbery every 20 minutes, a theft every three and a half minutes and a rape happening every 72 minutes. Angara said we need to hire 50,000 more policemen who should be out there patrolling the streets, not doing paper work which the civilian NUPs or non-uniformed personnel can very well do.

With the country’s over 107 million population (according to CIA World Facts figures) the police force placed at a little over 150,000 is not enough. Certainly, the estimated police to population ratio of 1:675 is pathetic compared to our neighbors like Malaysia that has a 1:267 ratio or Thailand with 1:304. The ideal police to population ratio is 1:500 – something provided for by Republic Act 6975 (the law establishing the PNP) but which we have never achieved all these years.

China property market in a slump

Chinese property developers are definitely unhappy at the slumping market, with housing prices going down for the second straight month in June with a glut being experienced in many cities. In weakening home markets like Hangzhou, developers are not only cutting down prices and offering no down payment schemes – they are now giving buy-back options (after three to five years) at 40 percent or more above the purchase price to encourage more buyers.

The property sector has been a driver of China’s economic growth, and analysts say the slump indicates lack of confidence due to the uncertain outlook in the property market. For sure, we’ll be seeing more unfinished construction of apartment buildings especially in smaller cities where demand has noticeably gone down, one observer noted.

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