GT Capital Buys 22.68% Stake in Property Company of Friends
Makati—(PHStocks)—GT Capital Holdings Inc. (PSE: GTCAP) has signed an agreement to acquire 22.68% of Property Company of Friends Inc. (PCFI) for PhP7.24 billion, subject to closing conditions, and with an option to increase its direct shareholding to 51% within the next three years.
Established in 1999, PCFI is today one of the country’s leading property developers, focusing on the low-cost and economic housing segments, and retail and office space leasing. PCFI has built and sold over 36,000 affordable homes in the provinces of Cavite and Iloilo. Its flagship and largest project is Lancaster New City, which spans the areas of Kawit, Imus, and General Trias in Cavite Province. It is highly accessible from Metro Manila via the Manila-Cavite Expressway (CAVITEX). In addition, the newly awarded Cavite-Laguna Expressway (CALAX) will have an exit near Lancaster New City. In December 2014, PCFI reported an audited net income after tax of PhP3.61 billion.
“The low-cost housing segment is the real sweet spot in the country’s property sector, with a supply shortage of over three million homes, which continues to grow annually. Our partnership with GT Capital will strengthen our ability to be a leading player in serving this urgent market need. Moreover, the potential synergies of working with other component companies in the GT Capital group will enable us to offer our live, work, learn, play, and worship estates to many more middle income Filipino families,” said Guillermo C. Choa, PCFI Chairman.
“We view this acquisition as a mutually beneficial partnership for both parties. PCFI has the product expertise and the strategic land bank, while GT Capital has the financial resources and access to capital. Our partnership adds a new dimension to GT Capital’s property development portfolio and will enable our group to be one of the market leaders in the low-cost housing sector,” GT Capital Chairman Francisco C. Sebastian explained.
“This investment complements Federal Land’s property development projects and expands our group’s presence in the property market. The GT Capital group will now offer Federal Land’s upper-mid to high-end vertical projects and PCFI’s low-cost horizontal and mixed-use townships in key areas near Metro Manila. Our strategic tie-up will thus be a fusion of all property sub-segments,” President of Federal Land Inc. Alfred V. Ty said.
Another major PCFI project is the Bellefort Estates in the Cities of Bacoor and Dasmarinas in Cavite Province. Bellefort Estates is likewise a choice location for a township development with its proximity to the newly opened Muntinlupa-Cavite Expressway (MCX) that connects to the SLEX. Aside from Lancaster New City and Bellefort Estates, ongoing PCFI projects include the Parc Regency Residences in Iloilo Province and the Carmona Estates in Carmona, Cavite Province, among others.