The title of this post was derived from the statement of Alphaland, a Filipino real estate development company, in response to its alleged involvement in corruption accusations that are currently making headlines in the Philippines.
The Philippine Stock Exchange (PSE) ordered the involuntary delisting of Alphaland in late 2014, citing violation of disclosure rules. Trading of its stocks has been suspended since January 2014.
What is this investment that they speak of? Is it really “the best and successful investment ever made” by the Boy Scout of the Philippines (BSP)? Here are some of the pictures.
The development also includes the swanky The City Club, a private, members-only leisure club, which opened in 2013.
Since the BSP owns a piece of the development, will it be able to hold its jamboree in The City Club? That probably won’t happen since the club is marketed as the “prime destination for Makati’s elite and discerning crowd“. Makati is home to the Philippines’ business and financial districts. Shares in The City Club go for PHP 1.5 million (US$ 33,960) each.
I can easily think of other successful investments that the BSP could have entered into with its PHP 600 million share (at 2008) in the project. If the BSP cashed out from the land deal and invested the amount in the stock market, the money would have earned multiples of the original amount already. The main Philippine stock index has appreciated to almost four times from its 2008-2009 financial crisis lows. Money invested in the stock market will also be liquid, and can easily be withdrawn by the organization for its spending or for other investment projects.
Instead, BSP’s money is parked in this real estate development. With all the controversies currently hounding the project, BSP’s fortunes (financial ones!) hang in the balance.