First Pacific Company Limited

Press Release

10^th March 1997

FIRST PACIFIC UNIT TO SELL 75 PER CENT INTEREST IN 64-HECTARE SITE

First Pacific Company’s Philippine flagship, Metro Pacific Corporation, announced today that Fort Bonifacio Development Corporation (FBDC) has signed a Letter of Intent to sell a 75 per cent interest in the 64-hectare area set aside for sports and recreation use within Metro Manila’s landmark Fort Bonifacio development for Pesos 20.28 billion.

The proposed purchase by Fort McKinley Holdings Corporation, a consortium of property development, cement, banking and investment companies, values the undeveloped land at an average of Pesos 42,250 per square meter. An initial payment of Pesos 10.14 billion, representing half the consideration, is to be made by the third quarter of 1997. The fully secured balance is to be received with interest over a period of six years and three months.

The 64-hectare sports and recreation area is to include a championship 18-hole golf course designed by Arnold Palmer, as well as a golf clubhouse and a sports and country club complex. It will also contain related residential, commercial, sports and recreational facilities to support the golf course.

FBDC will retain a 25 per cent interest in the area, and, therefore, participate in the future income from its development. Under the terms of the proposed sale, the consortium’s development plans for the site will be subject to the prior approval of FBDC to ensure that the development is consistent with the original master development plan for Fort Bonifacio.

Mr Ricardo S. Pascua, FBDC’s President and Chief Executive Officer, stated: "This proposed sale will crystallize the value of this area and provide a significant infusion of funds to FBDC which will be used, in part, to finance infrastructure projects. The disposal will also enable management to concentrate on the development of the commercial and residential areas in the first-phase of the project where sites were sold in 1996.

"The proposed sale will result in a significant gain for FBDC in 1997 and 1998, and will substantially strengthen its financial position. In 1996, 16 hectares of developed land were sold at an average price of approximately Pesos 180,000 per square meter, compared to the acquisition price of an average of Pesos 33,288 per square meter. Those sales generated potential revenues of approximately Pesos 28 billion. Last year, FBDC reported net income of over Pesos 1 billion from the installment payments it received."

FBDC is 45 per cent held by the Philippine Government’s Bases Conversion Development Authority and 55 per cent held by Bonifacio Land Corporation, in which Metro Pacific Corporation holds a 40 per cent interest. It has the rights to develop a site of 214 hectares in Fort Bonifacio, as part of the master development plan for the 440 hectare former military base into an integrated residential and commercial center built to international standards.

Fort McKinley’s partners include Global Securities, Century Properties, Inc., Fast East Cement Corporation, Philippine Veterans Bank; Pagbabago Development Corporation, Caixa (Philippines) Ltd., and Envirocorp (Australia) Pty Ltd.

For further information, please contact:

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E-mail: info@firstpac.com.hk

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