Alphaland is an unusual property company because it has no bank debt at all, which enables it to grow dramatically
Because of numerous requests from people wanting me to recount the tale of ‘The Son’ (Author Unknown) for Holy Week, I’m now recounting the tale.
Unfortunately before Holy Week, I got hospitalized by an “old man’s friend” (pneumonia) where I was tortured with the usual low-salt soft diet food for five days.
First, I was in isolation for a day, then moved to a regular room.
Thank God for that, I recovered soon enough to where I am, still pounding on my old Olympia typewriter.
Well, here’s the tale of ‘The Son’. For those who came late, I have recounted this tale numerous times.
I believe, however, that Holy Week and Easter Sunday are just around the corner gone, this tale is always apropo because of the lesson it tells.
Well, here it goes, and may God strike you deep in your heart.
The Son
(Author Unknown)
A wealthy man and his son loved to collect rare works of art. They had everything in their collection, from Raphael to Picasso. They would often sit together and admire the great works of art.
When the Vietnam conflict broke out, the son went to war. He was courageous and died in battle while rescuing another soldier. The father was notified and grieved deeply for his only son.
About a month later, just before Christmas, there was a knock at the door.
A young man stood at the door with a large package in his hands.
He said, “Sir, you don’t know me, but I am the soldier for whom your son gave his life. He saved many lives that day, and he was carrying me to safety when a bullet struck him in the heart and he died instantly. He often talked about you, and your love for art.”
The young man held out his package.
“I know this isn’t much. I’m not really a great artist, but I think your son would have wanted you to have this.”
The father opened the package.
It was a portrait of his son, painted by the young man. He stared in awe at the way the soldier had captured the personality of his son in the painting.
The father was so drawn to the eyes that his own eyes welled up in tears. He thanked the young man and offered to pay him for the portrait.
“Oh, no sir, I could never repay what your son did for me. It’s a gift.”
The father hung the portrait over his mantle.
Every time visitors came to his home, he took them to see the portrait of his son before he showed them any of the other great works he had collected.
The man died a few months later. There was to be a great auction of his paintings.
Many influential people gathered, excited over seeing the great painting and having the opportunity to purchase one for their collection. On the platform sat the painting of the son.
The auctioneer pounded his gavel. “We will start the bidding with this portrait of the son. Who will bid for this painting?”
There was silence. Then a voice in the back of the room shouted, “We want to see the famous paintings. Show this one.”
But the auctioneer persisted. “Will someone bid for this painting? Who will start the bidding? $100, $200?”
Another voice shouted angrily, “We didn’t come to see this painting. We came to see the Van Goghs, the Rembrandts. Get on with the real bids. “
But still the auctioneer continued. “The son! The son! Who’ll take the son?”
Finally, a voice came from the very back of the room.
It was the long-time gardener of the man and his son. “I’ll give $10 for the painting.”
Being a poor man, it was all he could afford. “We have $10, who will bid $20?”, the auctioneer said.
“Give it to him for $10.”, a man said, ‘’ Let’s see the masters.” The auctioneer answered, “$10 is the bid, won’t someone bid $20?”
The crowd was becoming angry.
They didn’t want the painting of the son. They wanted the more worthy investments for their collections.
The auctioneer pounded the gavel. “Going once, twice, SOLD for $10.”
A man sitting on the second row shouted , “Now, let’s get on with the collection!”
The auctioneer laid down his gavel.
“I’m sorry, the auction is over. When I was called to conduct this auction, I was told of a secret stipulation in the will. I was not allowed to reveal that stipulation until this time. Only the painting of the son would be auctioned. Whoever bought that painting would inherit the entire estate, including the paintings. The man who took the son gets everything.”
God gave his son 2,000 years ago to die on a cruel cross.
Much like the auctioneer, His message today is, “The Son, the Son, who’ll take the Son?”
*** *** ***
After the demise of my very good friend Roberto “Bobby” Velayo Ongpin last February 5, there have been many stories of the tycoon, billionaire, technocrat and visionary. No doubt, Bobby, as his friends and those who were close to him called him, and “RVO” to associates, had a beginning with his Alphaland.
Very few people knew that Bobby started first in buying into Eastern Telecommunications Philippines Inc. with my help.
I was then chairman-president, the presidential nominee and I helped him in controlling the corporation which he later sold to Ramon S. Ang, then president and COO of San Miguel Corp, now its chairman and CEO.
Later on, Ang sold the corporation to PLDT, Smart and Globe .
That gave Bobby an opportunity to form Alphaland in partnership with the United Kingdom’s Ashmore Group.
Alphaland Corp. was established in 2006 as a joint venture between RVO and the Ashmore Group, an Emerging Markets Fund Based in London, with funds under management of $75 billion.
RVO owned 22 percent of the company and Ashmore opened 69 percent.
The company was unique in that Alphaland developed only top of the line and high-0end projects and was successful from its inception.
Ashmore/RVO invested a total of $400 million in the enquiry of Alphaland to finance eight major projects:
Balesin Island Club
Alphaland Makati Place (including the City Club)
Alphaland Southgate Corp.
Alphaland baguio Mountain Lodges
Alphaland Makati Tower
Alphaland Bay City Corp
Alphaland Boracay Gateway Corp.
Alphaland Marina Club
By 2013, Alphaland had a market capitalization of P60 Billion ($1.276 billion).
IN late 2013, the AShmore partner in charge of Alphaland retired and was replaced. This precipitated a series of disagreements between the two partners and ended up in an amicable “divorce” settlement in 2014.
AS part of the “divorce” settl;ement, the Ashmore Group ceded all their shareholdings to RVO and the following projects were ceded to Ashmore in return:
-Alphaland Makati Tower
-Alphaland Bay City Corp.
-Alphaland Boracay Gateway Corp.
-Alphaland Marina Club
and the rest, 1, 2, 3, and 4 (above) remained with Alphaland Corp.
AS a result of the “divorce” settlement, RVO became 91 percent (now 92.5 percent) owner of Alphaland Corp., which became a private unlisted company.
In 2015, Alphaland had a net income of P7.2 billion ($153 million). Alphalamd’s net worth was P44.7 billion ($951 million). In 2021, this increased to P86 billion ($1.653 billion).
The company added two major projects in 2016, the Alphaland Balesin International gateway, which is a 750-hectare property located only 22 nautical miles from Balesin Island; and the Aegle Wellness Center, a state-of-the-art wellness facility with two venues, one in Makati and the other one in Balesin Island.
Alphaland is an unusual property company because it has no bank debt at all, which enables it to grow dramatically.
RVO will always be grateful to the Ashmore group without whom Alphaland Corp. would never have seen the light of day.
I got this report from an earlier issue of BizNews Asia Magazine of Tony Lopez when Bobby Ongpin was beginning to work on his signature high-end property project, the Balesin Island Club.