Business Sense

WATCH: W Group gears up for expansion, considers REIT IPO

Ralf Rivas
WATCH: W Group gears up for expansion, considers REIT IPO
'That's always in the pipeline. All companies will always look at REIT as an option,' says W Group CEO Francis Wee

W Group is looking at doubling its land area in the next five years and expanding its investments in the logistics sector.

In a Business Sense interview, W Group chief executive officer Francis Wee said they are looking at acquiring land outside of Bonifacio Global City (BGC) in Taguig City for logistics hubs.

“I would say a radius of 50 kilometers [from BGC], both north and south. We want to give options to potential clients,” Wee said.

Currently, the W Group, through W Landmark, operates premier boutique office buildings in BGC, including W High Street, W Global Center, W Fifth Avenue, Citi Plaza, and W CityCenter.

In 2020, the group constructed a distribution center in Tarlac. It also has an industrial park in Malvar, Batangas, and a 10-hectare property in Santa Rosa City, Laguna.

Wee said they still have land within BGC, noting that they intend to break ground for one project by the end of 2021 or the first quarter of 2022.

Where will they get the funding to double their land area?

Aside from borrowing from banks, the company is looking at a real estate investment trust or REIT.

“That’s always in the pipeline. All companies will always look at REIT as an option,” Wee said.

He added that companies that pushed through with a REIT initial public offering had “good reception” from the market.

About W Group

The W Group is owned by the Wee family, led by Philippine Ambassador to Indonesia Lee Hiong Wee and wife Rosalind.

They started the business in the 1960s, producing tie-dyed shirts and selling decorative seashells.

They started engaging in seaweed trading and carrageenan production in 1969, then later expanded to being a food ingredients solutions provider.

In 2008, the family started to diversify their portfolio by including real estate and investing in commercial land and buildings in BGC.

The W Group operates five premier office buildings, one residential building, and several logistics properties, among others.

Francis is the CEO of W Group, while his brother, Norman Vincent, sits as the company’s president. – Rappler.com

Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.