A PROPERTY UNIT of GT Capital Holdings, Inc. has sealed a deal with Metro Pacific Investments Corp.’s (MPIC) logistics arm to sell its Cavite property for P1.02 billion.
In a disclosure to the stock exchange on Monday, GT Capital said its subsidiary Property Company of Friends, Inc. (ProFriends) and MPIC’s MetroPac Movers, Inc. (MMI) signed definitive agreements for the sale of 202,110 square meters (sq.m.) of land in General Trias, Cavite priced at P5,025 per sq.m.
MMI disclosed its intention to acquire ProFriends’ property last month, which it said will be developed into a covered warehouse space spanning 141,000 sq.m. The facility will be used to better manage MMI’s distribution centers for existing and potential clients in the fast moving consumer goods, consumer durables, automotive, and e-commerce spaces.
MPIC will be spending P8 billion to develop the property and to purchase equipment to be used in the facility.
The developed warehouse space will be added to MMI’s current portfolio of 207,000 sq.m. warehouse spaces across the country.
MMI’s acquisition forms part of the Metro Pacific group’s goal to ramp up its investments in the logistics industry. Earlier this year, the company said it is on the look out for two to three logistics firms. It is also poised to close its acquisition of transport and logistics solutions provider Air21.
ProFriends is one of the property units under GT Capital alongside Federal Land, Inc. The company ended 2017 with a total land bank of 2,211.9 hectares primarily in Cavite and Iloilo. Of this, 602.2 hectares have been developed while 1,609.7 hectares are undeveloped.
The company builds master-planned townships consisting of residential subdivisions and commercial, retail, and institutional establishments. It has recently expanded its scope to medium-rise buildings, through its Illustrata Residences project in Quezon City.
ProFriends targets the affordable and middle income markets, with house and lot packages priced from P700,000 to P3.3 million, according to its 2017 annual report.
ProFriends and Federal Land generated P4.3 billion in consolidated revenues during the first quarter of 2018, resulting to a net income of P423.8 million.
Aside from property, GT Capital also has core investments in banking, automotive, insurance, and infrastructure.
GT Capital’s consolidated net income jumped 21% to P3.8 billion in the January to March period, supported by P45.5 billion in consolidated revenues for the period.
Shares in GT Capital dropped by 0.52% or P5 to close at P950 each at the Philippine Stock Exchange on Monday.
MPIC is one of the three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc., Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arra B. Francia