MANILA, Philippines – A Netherlands-based pension fund acquired 9.8% of listed real estate firm Century Properties Group Inc.
In a disclosure to the stock exchange on Tuesday, February 21, Century Properties said it has entered into a purchase agreement with APG Strategic Real Estate Pool N.V. for the sale of 868.32 million shares in the local firm.
This move will widen Century Properties’ public float to 27.3% from the current 3%.
With a wider base of public ownership, Century Properties would meet the required minimum public float of at least 10%. Its shares would then be spared from being suspended or delisted since the Philippine Stock Exchange is now imposing its public float rules more strictly.
Actually, Dutch firm APG has already invested in Century Properties’ convertible bonds in 2011. Instead of the initial plan to convert these bonds into equity shares in Century Properties, both decided to enter into a purchase agreement.
Any of the 2 methods would lead to the same end goal of wider ownership base for Century Properties.
“The transaction will widen the company’s public float and at the same time generate capitalization for infusion in the business of the company,” Century Properties’ compliance offcier Neko Lyree Uson-Cruz said.
In the first 10 months of 2011, the real estate firm’s net income grew 447% to P781 million in 2011 from P143 million in the same period in 2010 after revenues doubled year-on-year to P4.02 billion.
In 2011, Century Properties completed its backdoor listing in the local bourse with the takeover of dormant firm East Asia Power Corp. – Rappler.com