A court victory can restore ownership of a valuable asset, but it does not automatically create cash flow or shareholder returns.
This is the situation now facing Wellex Industries, Inc. after it recovered a 2,868-square-metre property in Pasig City that had been outside its control for almost 15 years.
The property was foreclosed in November 2009 after it had been used as collateral for a loan obtained by companies affiliated with Wellex. The Supreme Court later declared the foreclosure proceedings null and void and ordered the reconstitution of Wellex’s title.
In October 2024, a writ of execution led to the restoration of Wellex’s possession of the property. The company then placed the land back on its balance sheet at ₱186.42 million and recognised an ₱81.36 million reversal of impairment.
That accounting gain helped lift Wellex’s reported income in 2024. However, the more interesting question is not how much income the company recognised.
It is how much the Pasig property could be worth today and what Wellex plans to do with it.
A Property Used to Support an Affiliate’s Loan
The dispute began with a ₱550 million loan facility that Philippine Veterans Bank granted to Metro Alliance Holdings and Equities Corporation and Polymax Worldwide Limited.
Wellex was not the principal borrower. However, it acted as a third party mortgagor and used a parcel of land in Barangay Bagong Ilog, Pasig City as collateral for the loan.
The property was covered by TCT No. PT-101859. Philippine Veterans Bank foreclosed the land on November 24, 2009 after disagreements arose over the remaining loan obligation and interest charges.
The Supreme Court eventually upheld the invalidation of the foreclosure proceedings. It ordered the cancellation of the title issued to Philippine Veterans Bank and the reconstitution of Wellex’s original title. The Court also ruled that Wellex was entitled to reasonable rent for the period when it had been deprived of possession.
The financial statements state that the sheriff enforced the writ of execution in October 2024. Philippine Veterans Bank relinquished its claim and turned over the title and related documents, which allowed Wellex to regain possession of the property.
Why Wellex Recorded an ₱81 Million Gain
The ₱81.36 million recognised by Wellex was not the current appreciation in the property’s market value.
Wellex originally carried the property at ₱186.42 million. Based on its area of 2,868 square metres, this was equivalent to ₱65,000 per square metre.
The company recognised a ₱57.36 million impairment loss in 2006 based on an appraisal. It recorded another ₱24 million impairment in 2008 after a further decline in the estimated value.
The two impairments reduced the property’s carrying amount from ₱186.42 million to ₱105.06 million.
After the foreclosure, Wellex reclassified the ₱105.06 million balance as an advance to Polymax. When the property was returned in 2024, the company removed the advance, restored the land at its previous carrying value of ₱186.42 million and reversed the ₱81.36 million impairment.
The reversal increased reported income, but Wellex did not receive ₱81.36 million in cash. It merely restored the asset to the amount at which it would have been carried if the earlier impairments had not been recognised.
Wellex uses the cost model for its investment properties. This means that land remains recorded at cost less impairment rather than at current market value. Its accounting policy also prevents an impairment reversal from raising an asset above the carrying amount that would have existed without the earlier impairment.
The ₱186.42 million recorded on the balance sheet may therefore be far below the property’s present economic value.
Could the Pasig Property Be Worth ₱600 Million?
Wellex does not disclose the exact street frontage, shape, zoning classification or permitted development density of the recovered land. The company also does not provide a separate current appraisal for the property.
Any valuation must therefore remain indicative.
Still, recent asking prices for sizeable commercial properties in Barangay Bagong Ilog provide a useful reference.
One 2,212-square-metre commercial lot in Bagong Ilog was offered at ₱464.52 million, equivalent to approximately ₱210,000 per square metre. Another 2,095-square-metre commercial property along Lakeview Drive and Pasig Boulevard was offered at ₱460.9 million, or around ₱220,000 per square metre.
A third listing for a 2,820-square-metre vacant lot in Bagong Ilog carried an asking price of ₱423 million, or approximately ₱150,000 per square metre.
Using ₱210,000 per square metre as a working reference would place the indicative value of the Wellex property at:
2,868 square metres × ₱210,000 = ₱602.28 million
For the article, a reasonable working estimate would therefore be approximately ₱600 million.
The figure should not be treated as a formal appraisal. Property listings show sellers’ asking prices rather than completed transaction values. The actual price would depend on the exact location, frontage, access, zoning, flood exposure, title conditions and development potential of the Wellex property.
Nevertheless, the comparison suggests that the land could be worth more than three times its carrying value.
A Potential ₱414 Million Hidden Surplus
If the property is worth approximately ₱600 million, the difference between its indicative market value and its ₱186.42 million book value would reach:
₱600 million less ₱186.42 million = ₱413.58 million
Wellex had approximately 3.276 billion outstanding shares at the end of 2025. The possible unrecognised uplift would therefore be equivalent to roughly ₱0.13 per share before taxes, transaction expenses and other adjustments.
This does not mean that Wellex’s share price should automatically increase by ₱0.13. The estimate only shows how material the potential hidden value could be relative to the company’s capital structure.
Wellex’s Own Appraisals Point to Hidden Value
Wellex’s audited financial statements already indicate that its properties are worth considerably more than their carrying values.
At the end of 2025, the parent company carried its investment properties in Pasig and Rodriguez, Rizal at a combined ₱239.50 million. Their disclosed combined fair value stood at approximately ₱935.55 million.
The filings do not divide the fair value between the 2,868-square-metre Pasig property and the much larger landholdings in Rodriguez. The ₱935.55 million figure therefore cannot be used to determine the Pasig property’s value by itself.
The March 2026 quarterly report further complicates the picture. It placed the combined fair value of the parent company’s Pasig and Rodriguez properties at ₱1.21 billion, compared with ₱935.55 million in the audited December 2025 statements.
Wellex did not clearly explain the approximately ₱273 million difference. The change could reflect an updated appraisal, a difference in the properties covered or a correction of the earlier figure.
A separate appraisal of the Pasig property would give shareholders a clearer basis for evaluating its contribution to Wellex’s net asset value.
The Rental Claim Could Add Further Value
The Supreme Court did not only order the restoration of Wellex’s title. It also directed Philippine Veterans Bank to pay reasonable rent for the period when Wellex had been deprived of possession.
The amount was left to the trial court to determine.
Wellex’s filings do not disclose a final rental award for the Pasig property. They also do not state whether any amount has been collected or whether the computation remains subject to further proceedings.
The rental claim could become another source of value because the property remained outside Wellex’s possession for several years. However, no amount should be included in the company’s valuation until the claim becomes measurable and collectible.
What Will Wellex Do With the Property?
Wellex has not disclosed a detailed plan for the recovered land.
The company could sell the property and convert the hidden value into cash. It could lease the land, develop it independently or contribute it to a joint venture with a property developer.
Wellex could also use the property in an asset for share transaction or as part of a new business that may enter the listed company. Its March 2026 report said the parent company’s investment properties were free from liens and encumbrances.
The decision matters because Wellex had only ₱2.37 million in consolidated cash as of March 2026. The company also continued to rely on financial support from major shareholders and related parties to sustain its operations and meet its obligations.
A property with an indicative value of ₱600 million could materially strengthen its financial position if management successfully monetises or develops it.
The Supreme Court victory returned the asset. The impairment reversal restored its historical accounting value. Neither event, by itself, created recurring income.
The next test is whether Wellex can turn the recovered property’s possible ₱600 million market value into cash flow and tangible value for minority shareholders.
