Manuel Villar Loses Top Billionaire Title After $16B Wealth Drop

The Fall of a Billionaire: Manuel Villar’s Net Worth Plummets

Billionaire Manuel Villar has experienced a dramatic decline in his net worth, losing over US$16 billion following a sharp drop in the value of his property company, Villar Land. Shares of the company fell by 76% within just three trading days, causing him to lose his position as the richest person in the Philippines.

Villar Land, previously known as Golden MV Holdings, resumed trading last Thursday after a six-month suspension due to its failure to file audited financial reports. The stock suffered a significant decline across the next three sessions, marking one of its steepest drops since going public. Villar and related parties own 89% of the company's shares, making the loss particularly impactful for him.

This downturn has stripped Villar of his title as the wealthiest individual in the Philippines. According to Bloomberg, his fortune is now valued at $5.6 billion, down from over $20 billion earlier this month. He is now behind tycoon Enrique Razon, whose net worth is estimated at $13.2 billion.

The Valuation Dispute That Caused the Collapse

The collapse of Villar Land’s stock can be traced back to a dispute with its external auditor, Punongbayan & Araullo, an affiliate of Grant Thornton. The disagreement centered around the valuation of a large, largely vacant plot on the outskirts of Manila, which was acquired from three privately held companies owned by the firm’s founder.

The property was initially revalued at over 1.3 trillion Philippine pesos (US$23.3 billion) after being purchased for 5.2 billion pesos in September. After months of negotiations, Villar Land agreed to reduce the land holdings’ valuation to 8.7 billion pesos.

As a result, the company’s audited net profit for 2024 was restated to 1.4 billion pesos, a significant drop from the nearly 1 trillion pesos reported in an unaudited filing in March. This figure had largely reflected gains from the initial land revaluation, as reported by The Manila Times.

A Rise from Humble Beginnings

Born in 1949 in Manila’s Tondo neighborhood, Villar came from a family he described as poor. He earned degrees in business administration and accountancy before embarking on his entrepreneurial journey. His early ventures included a seafood delivery firm, which eventually led him into construction and then real estate.

Beyond Villar Land, Villar has investments spanning energy, media, retail, restaurants, and a water utility. The land at the center of the recent valuation dispute is located in the heart of Villar City, his most ambitious real estate project to date, and is considered crucial to its development.

Villar Land’s stock had surged after the land purchase was announced, with its market capitalization peaking at 1.5 trillion pesos before trading was suspended.

Media Portrayal and Market Skepticism

Local media often highlight Villar’s rise as a classic rags-to-riches story. However, the recent turmoil has cast doubt on his company’s rapid ascent. John Gatmaytan, chairman of Philippine brokerage Luna Securities and a veteran fund manager, told Forbes that “reality bites.” He noted that the market has always been skeptical about the value of the company.

“There’s no doubt the assets are there, but what is its value and how really good are these assets?” he asked, reflecting the growing concerns among investors and analysts.

The Future of Villar Land

With the valuation dispute resolved and the company’s financial reports now submitted, the future of Villar Land remains uncertain. The company must navigate the fallout from the stock price plunge and rebuild investor confidence. As it moves forward, the challenges ahead will test both the resilience of the company and the legacy of its founder.