THE Philippine Competition Commission (PCC) has approved the joint venture of Robinsons Land Corp. (RLC) and Shang Properties, Inc. to develop a luxury residential condominium in Bonifacio Global City.
In a Wednesday statement, the antitrust body said the transaction does not result in “substantial” narrowing of competition.
“There are enough existing competitive constraints on the parties after the transaction. There is no increased ability nor incentive to engage in input foreclosure or customer foreclosure post-transaction,” the March 20 decision of the PCC’s Mergers and Acquisitions Office (MAO) read.
The joint venture of RLC and Shang Properties will build two luxury residential condominiums on a 9,118-square meter property. The property, owned by the Gokongwei-led RLC, is located at McKinley Parkway corner 5th Avenue in Bonifacio Global City.
The companies are looking into converting a portion of the luxury residential development into serviced apartments and commercial spaces.
RLC and Shang Properties will subscribe to shares of stock of the joint venture company (JVC), which will result in each party owning 50% of the outstanding stock.
“In addition, the parties shall also extend shareholder advances, at fair and commercial rates comparable to loans extended by third party banks and financial institutions to the JVC in equal amounts,” the PCC said.
RLC is the real estate investment arm of JG Summit Holdings, Inc., while Shang Properties is engaged in hotels, lease of commercial and office spaces, development and sale of luxury residential condominiums, and property management. — Janina C. Lim
