The Securities and Exchange Commission (SEC) has opened a fact-finding investigation into the staggering P1-trillion valuation of Villar Land Holdings, SEC Chairman Francis Lim confirmed on Friday, August 8.
Lim said the inquiry was triggered by multiple investor queries over the infusion of new assets into the company owned by real estate tycoon and former Senate President Manny Villar.
The SEC chief stressed the probe will look into potential market integrity issues, impacts on investors, and the reputations of companies involved.
“These are technical issues. Fortunately, I’ve been teaching securities regulation course for a number of years. So, I know the refinements of the law. What I don’t want to happen is for the SEC to act hastily and, at the end of the day, commit a mistake,” Lim said, noting the complexity of determining whether insider trading or stock manipulation had occurred.
In a statement, Villar Land said it “welcomes the SEC’s fact-finding probe” and will continue cooperating with regulators.
“Villar Land’s financial statement is currently undergoing a rigorous audit process by external auditors and this includes a comprehensive review of appraisal reports covering high-value properties. This extensive audit is necessary to ensure the accuracy and integrity of the financial statements,” the company stated.
The company’s valuation came under scrutiny after its profits surged to P1 trillion in 2024 — a massive leap from just P1.6 billion the year before. Villar Land attributed the spike to “fair value gains” reflecting higher valuations of its Villar City properties in Cavite and Metro Manila.
In 2024, Villar Land expanded its land bank by acquiring nearly 400 hectares within Villar City from three other Villar-owned firms: Althorp Land Holdings Inc., Chalgrove Properties Inc., and Los Valores Corp.
However, without these revaluation gains, the company’s operating profit actually dropped 29% to P1.22 billion due to weaker residential sales.