Filipino Mogul Loses $18 Billion in Property Fortune

A prominent Filipino real estate mogul has lost more than $18 billion of his fortune in just a few days as his development firm’s stock free-falls.

Six months after Manuel Villar’s Golden MV Holdings was hit with a six-month trading suspension by Philippine regulators, Villar lost his position as the richest man in the Philippines after a days-long stock value drop-off this week, Bloomberg reported. Villar is now worth $5.3 billion, with business mogul Enrique Razon now claiming the top spot with a $13 billion net worth, per Forbes.

Golden MV didn’t have an explanation for regulators about the stock drop. “When a stock returns from trading halt — especially one linked to a high-profile tycoon like Manny Villar — investors typically reassess [its price vis-à-vis its fundamentals],” Globalinks Securities & Stocks analyst Toby Allan Arce told Bloomberg. “The market appears to have concluded that the company’s pre-suspension valuation was far too rich.”

Regulators suspended Golden MV’s stock in May after the company reportedly failed to file financial results because of a disagreement with its auditor. The point of contention was over the value of a plot of land. Golden MV acquired the land from Villar, a former politician, for $93 million, but it was subsequently revalued at $23.3 billion. That sale and sudden purported increase in value came after a spike in Golden MV’s stock price that increased the firm’s price-to-earnings ratio above 1,000.

Last week, Golden MV shared in its 2024 annual report that it had agreed to value the land using a method suggested by its external auditors. As a result, Golden MV said, it produced a value similar to what it ended up paying for it.

Other parts of Villar’s holdings have suffered as a result of the stock suspension. Two bonds tied to his development firm Vista Land & Lifescapes fell into distress in May. One note due in 2029 that was sold last year fell 1.6 cents on the dollar to 58.3 cents earlier this week, marking the biggest daily drop in more than a month.

Golden MV’s property ventures include developing and managing cemeteries and low-cost housing. It’s currently developing Villar City, a plan to turn a group of cities in southern Metro Manila into a new hub. The land bought last year is slated to be part of that project.

— Chris Malone Méndez