Php44 Bn

Philippine Infradev, the developer behind the Php210 billion Makati railway project, reported losses totaling Php44 billion in 2023.

This Php44 billion impairment loss includes Php5 billion for unfinished work and Php39 billion for intangible assets.

To put this into perspective, Metro Pacific (MPI), another infrastructure-focused company, posted a net income of Php13 billion in 2022 (before its delisting in 2023). Essentially, PhilInfra's losses from the Makati railway project equate to 3.4 times MPI's annual income.

In 2023, the Supreme Court ruled that Taguig has jurisdiction over Fort Bonifacio and 10 "Embo" barangays that were previously part of Makati. Consequently, half of the 10 planned stations for the railway project are now under Taguig’s control.

Why is this relevant to real estate?

This situation highlights the risks for investors who make business or real estate decisions based on anticipated infrastructure projects. Even seemingly secure projects can unravel quickly.