Kuok eyes P400M from sale of two prime properties

Listed property holding and investment company Kuok Philippine Properties Inc. (KPPI) is eyeing to raise around P400 million from the sale of two prime properties.

KPPI vice-chairman and president Tomas C. Zita Jr. said the company is in talks with several investors for the possible sale of its 1,348-square meter property in Bonifacio Global City and a 107-hectare property in Tagaytay City, which it owns jointly with Crown Equities Inc.

"We are now in talks with individuals for these properties but we can’t reveal their identities yet. We hope to seal the sale this year," said Zita.

Zita said KPPI is also considering divesting its 35-percent interest in Caylabne Bay Resort, a beach resort in Ternate, Cavite.

The sale of its properties is aimed at wiping out the company’s debt to allow it to pursue the development of other real estate projects, including a six-hectare property in Naic, Cavite, a 400-hectare lot in Mabini, Batangas, and a 10,800-square meter property in Malugay, Makati.

Last year, KPPI sold its 1.6-hectare property adjacent to Shangri-La’s-Mactan Island Resort and Spa in Cebu for P81.2 million.

The company also generated P186.6 million from the sale of its equity in Joint Central International Ltd., which owns 20-percent interest in both the Brown Swallow Development Corp. (BSDC) and Green Mangrove Realty Inc. (GMRI). BSDC and GMRI own parcels of the 13.1-hectare property being leased by Shangri-La Mactan Island Resort and Spa.

KPPI’s subsidiary, KPPI Realty Corp., also sold all of its interest in The Shang Grand Tower Corp. (TSGTC) to affiliate Edsa Properties Holdings Inc. (EPHI). TSGTC is the developer of The Shang Grand Tower, a 46-story luxury condominium in Legaspi Village Makati.

The company also continued selling its inventory of memorial lots at the Heritage Memorial Park, the proceeds of which were used to fund its administrative expenses. Last year, the company sold 11 estate lots, five garden lots and 67 lawn lots generating a total of P25.2 million with a net gain of P14.7 million. This leaves a balance of 184 lots unsold representing 25 percent of the original value of the holdings.

KPPI derives its financial strength from its strategic alliance with the Kuok Group of Singapore, a leading property developer in the Western Pacific Rim. The Kuok Group holds a significant equity interest in KPPI.

The most visible of the Kuok Group’s enterprises have been its successes in hotel ownership and management of the distinguished Shangrila International hotel chains.

KPPI was incorporated to primarily engage in the business of property holding and investments. It is also authorized under its present charter to engage in the industries of food, trading, agriculture, aquaculture, construction, infrastructure development including energy-related projects, transportation and manufacturing.