The leading real estate firm of Manuel Villar, the wealthiest individual in the Philippines, Villar Land, has agreed to reduce the value of a land asset from 1.34 trillion pesos (US$23.6 billion) to only 8.6 billion pesos following the rejection of the previous one-trillion-peso evaluation by an independent auditor.
The company’s external auditor, Punongbayan & Araullo, which is affiliated with Grant Thornton, requested a fresh expert evaluation, according to reports by
Bloomberg
.
This advancement came to light earlier this month through a directive issued by the Securities and Exchange Commission (SEC), which additionally imposed a total penalty of 12 million pesos on Villar Land, its president Villar, and several senior officials.
The SEC directive is related to an ongoing probe after the firm postponed submitting its 2024 certified financial reports.
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Manuel Villar addressed an audience at the University of the Philippines located in Quezon City on February 8, 2010. The photograph was taken by Reuters. |
As per the directive, the circumstances date back to March, when Villar Land filed a statement indicating that its board had authorized the publication of the company’s annual financial report as of December 31, 2024.
The company reported a net income of almost one trillion pesos in that document, representing an increase of over 68,000% compared to 1.46 billion pesos in 2023, mainly due to a 1.3-trillion-peso valuation gain.
That advantage came from a
A 366-hectare piece of land that Villar Land purchased last September
For 5.2 billion pesos obtained from three of Villar’s private enterprises. The asset was subsequently valued at 1.34 trillion pesos by E-Value Phils., an SEC-approved company, under the fair value approach.
However, Villar Land later acknowledged that the audit was still in progress and requested the SEC midway through April to prolong the date for submitting its audited financial reports for 2024, as their auditor needed additional time to examine and complete the document, according to the statement.
Manila Bulletin
.
Later in May, it informed the SEC that the audit was postponed because P&A had disputed the value of the land plot.
The auditor asked for a fresh appraisal report and also hired an additional consultant, Crown Property Appraisal Corporation, to verify the figures. Once this company provided its professional assessment of the value, P&A continued to demand yet another appraisal report.
Faced with increasing demands to disclose its verified financial reports, Villar Land opted to value the land based on original cost, leading to a significantly reduced assessment.
“To ensure the prompt issuance of the 2024 audited financial reports, it had cautiously suggested to the independent accountants the application of cost basis for documenting the worth of those assets,” stated Villar Land in a press release issued last Thursday, as reported by
The Manila Times
.
However, the company stated that it maintained confidence in the fair value of the plot of land.
According to the order, the SEC stated that it levied fines against the company and its executives for authorizing and distributing unreviewed financial reports prior to the verification of the land assessment by their accountant,
Forbes
reported.
The regulator observed that there is grounds to hold them administratively responsible for serious neglect or dishonest intent in relation to the dissemination of publicly disclosed information that appears to be false, incorrect, or deceptive.
The stock price of Villar Land increased significantly after the announcement of the land acquisition, with the company’s market value reaching 1.5 trillion pesos at its highest point prior to the suspension of its share trading in May.
This amount positioned it as the top valued publicly traded company in the nation, surpassing well-known heavyweights such as the Sy family’s SM Investments and billionaire Ramon Ang’s San Miguel.
Francis Lim, head of the SEC, mentioned that additional steps might be undertaken based on outcomes from current inquiries.
“The integrity of our stock market is at risk,” he stated through a text message.
Former Senator and 2010 presidential hopeful Villar earned his undergraduate degrees in business management and accounting from the University of the Philippines, then started his professional journey as an accountant at SyCip Gorres Velayo, the country’s leading accounting company.
He subsequently entered the world of commerce,
He then pursued an entrepreneurial path,
He eventually started his own business,
He went on to establish himself in the commercial sector,
He shifted his focus towards enterprise,
He embarked on a career in trade,
He took up ventures in the business realm,
He moved forward into the field of commerce,
He began engaging in commercial activities,
He turned his attention toward business endeavors.
beginning with seafood delivery and then proceeding to real estate development
where he accumulated his wealth. In addition to property investments, he owns an extensive business network encompassing energy, media, retail, dining establishments, and a water supply company.
He presently holds the title of wealthiest individual in the Philippines, boasting an approximate net value of $23.3 billion, as per the Bloomberg Billionaires Index.
However,
Bloomberg
it was observed that the significant decrease in the value of the land plot may lead to a decline in Villar’s net worth.
The real estate magnate also came first
Forbes
The 2025 World Billionaires list for the Philippines was published in April, although he dropped below the Sy siblings and shipping magnate Enrique Razon Jr. in the magazine’s recent Philippines 50 Richest rankings.
