Federal Land divests 52% stake in Crown Central

FEDERAL LAND, INC. (FLI), the property arm of GT Capital Holdings, Inc., and its subsidiary Horizon Land Property Development Corp. have sold their combined 52% stake in Crown Central Properties Corp. to Crown Equities, Inc. (CEI) for a total of P73.48 million.

In a disclosure to the stock exchange on Wednesday, CEI said it acquired 62.5 million common shares from Federal Land, valued at P68.12 million, and 5 million common shares from Horizon Land, valued at P5.37 million. The acquisition was approved by CEI’s board on Dec. 16 and remains subject to agreed closing terms and conditions.

Following the transaction, Crown Equities now owns 100% of Crown Central Properties, which was previously a joint venture between Crown Equities and the FLI group. The company develops residential and commercial projects.

Crown Central was originally established in 1996 as a joint venture between Crown Equities and Solid Share Holdings — now Federal Land — to develop Palma Real Residential Estates in Biñan, Laguna. In 2003, it entered into a memorandum of agreement with Sta. Lucia Realty and Development, Inc., under which Crown Central contributed the land and initial improvements while Sta. Lucia completed the development of the subdivision.

Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., described Federal Land’s exit as a strategic capital-recycling move rather than a defensive retreat, intended to strengthen the company’s position in a disciplined, opportunity-focused real estate market.

“Crown Central is largely associated with mixed-use or mall-centered developments, and divesting from it suggests Federal Land is reassessing where its capital and management attention can generate the strongest long-term returns,” he said.

He added that, given Federal Land’s broader exposure to residential, office, hospitality, and large-scale mixed-use projects, the exit is unlikely to materially affect its overall growth trajectory. “Instead, it reflects a strategic pruning of non-core or lower-priority assets amid a more selective property market environment,” he said.

Mr. Arce noted the divestment could free up capital and simplify the group’s structure, enabling Federal Land to redirect resources to projects with clearer demand, stronger margins, and better long-term potential.

“The transaction also opens up new strategic opportunities. Federal Land could redeploy proceeds into land banking in growth corridors, partnerships with international hotel or lifestyle brands, or even diversification into logistics, data centers, or infrastructure-adjacent real estate — segments that have been gaining investor and tenant interest,” he added.

In October, FLI President Jose Mari H. Banzon said the company had completed its project launches for 2025 and was preparing several new residential developments for 2026. These include a 21-hectare horizontal project in Biñan, Laguna, as a sequel to its Meadowcrest community, and phase 3 of Grand Hyatt Residences in Bonifacio Global City, following the successful sale of the first two phases. A two-tower project near The Seasons Residences is also being prepared, while developments in Marikina and the Bay Area are on hold until market conditions improve, according to the company.

Federal Land is a subsidiary of GT Capital Holdings, Inc., a diversified conglomerate with interests in automotive, banking, and real estate.

On Wednesday, shares of GT Capital closed at P575 apiece, down 50 centavos or 0.09% at the local stock exchange. — Alexandria Grace C. Magno