Robinsons Land bags Manila Gas’ Paco property for P573M

Robinsons Land Corp. (RLC), the property development arm of the Gokongwei’s JG Summit Holdings Inc., has bagged the Manila Gas property in Paco, Manila for P573 million.

The 39,995-square meter property will be turned over by the state run National Development Co. after 60 days.

RLC increased its offer to P573 million from its original offer of P562 million. The amended offer, however, is still below the P637.27 million floor price set by the government.

RLC plans to convert the property into a lifestyle mall and residential condominium building.

Company officials said the building will be limited to just five floors given the requirement imposed by the government to ensure the security of the area which is near Malacañang Palace, the seat of executive power.

RLC is also bidding for the 4.8-hectare Makati property formerly occupied by the International School. The government has set a floor price of about P1.2 billion or P23,000 per square meter for the property.

The property is seen as ideal for the development of high-rise residential or business complex, given its proximity to the Rockwell Center, an upscale business and residential enclave. There have been at least two failed auctions for the IS property and the government can resort to a negotiated sale if the bidding will fail for a third time.

RLC is positioning to become the country’s major property company. It focuses on shopping malls, office buildings, hotels, and housing.

The company intends to steadily expand its shopping mall business by building three to four new shopping malls a year. It also plans to develop leaner commercial centers in provincial cities with a smaller average gross floor area of 25,000 square meters each.

The firm’s shopping malls are generally anchored by sister companies Big R Supercenter, Robinsons Department Store, Robinsons Supermarket and/or Handyman. They enjoy high occupancy rates, currently averaging at 94 percent.

RLC is also the country’s largest domestic hotel owner and operator. Its subsidiaries and affiliates include Manila Midtown Hotels & Land Corp. as well as housing concerns Robinsons Homes Inc. and Trion Homes Development Corp.

It intends to maintain its higher-than-industry hotel occupancy rates by strengthening its marketing organization to focus on corporate and leisure travellers, as well as to bolster the domestic market with airline affiliate Cebu Pacific Air.