SUMMARY
This is AI generated summarization, which may have errors. For context, always refer to the full article.
MANILA, Philippines – Real estate tycoon Andrew Tan is consolidating his group’s property units under flagship developer Megaworld Corp, a move considered similar to what the Sy-led SM Group recently did.
The consolidation involves folding 3 companies into Megaworld: leisure estate unit Global-Estate Resorts Inc (GERI), middle-income residential development unit Empire East Land Holdings Inc (ELI) and affordable homes developer Suntrust Properties Inc.
In a disclosure to the Philippine Stock Exchange (PSE) on Friday, June 21, Megaworld said the consolidation move is aimed to raise more money, given the recent real estate opportunities.
“Megaworld seeks to consolidate the real estate businesses of its affiliates under the Megaworld brand to better capitalize on real estate opportunities and capture the expected growth momentum of (subsidiaries) within the next 5 years,” the company said in its disclosure.
It did not specify if any of the affected units will be delisted.
Megaworld is spending almost P7 billion to acquire shares in its several property units. Specific figures include:
- P5.65 billion to acquire 2.5 billion common shares at P2.26 each of integrated tourism estates developer GERI
- P1.26 billion to acquire 1.2 billion common shares at P1.05 each of transit-oriented, township and mixed-use developer Empire East Land Holdings, Inc. (ELI)
Shares of both property arms will be bought at their 30-day average price with 5% premium for the GERI common shares.
Earlier this June, Megaworld folded in its 100% stake in affordable homes developer Suntrust Properties Inc, which has projects in Cavite, Laguna and Manila.
Megaworld is expected to launch 10 new projects in the first 6 months of 2013 worth P35 billion, a record high for the company’s capital expenditure.
The consolidation move came weeks after Henry Sy-led SM group merged all its real estate units under SM Prime. The new property behemoth dislodges Ayala Land Inc (ALI) as the country’s most valuable property group. – Rappler.com
Add a comment
How does this make you feel?
There are no comments yet. Add your comment to start the conversation.