MANILA, Philippines - The local property unit of Malaysia’s Kuok Group has unloaded its P74-million stake in a Cavite resort joint venture with the Virata Group.
In a disclosure to the Philippine Stock Exchange, Shang Properties Inc. said it “has agreed to sell its equity in Exchange Properties Resources Corp. (EPRC) to EPRC, representing 35 percent of the equity of EPRC.â€
No further details were provided and company officials were not immediately available for comment.
The divestment marks the end of the partnership between the Kuok Group’s Shang Properties and the Virata Group, led by investment banker Luis Juan L. Virata, for the Caylabne Bay Resort in Ternate, Cavite. Virata is a major stockholder in Nickel Asia Corp., the country’s largest nickel miner.
As of end-September 2012, Shang Properties had P2.45 billion worth of investments in associates like Shang Global City Properties Inc., Fort Bonifacio Shangri-La Hotel & Resort Inc. and Sky Leisure Properties Inc.
The P74-million investment in EPRC is the smallest in the associate investments of Shang Properties.
In 1990, EPRC acquired 165 hectares of contiguous land at Caylabne Point in Ternate, Cavite from state-run Asset Privatization Trust.
It includes the 90-kilometer Caylabne Bay Resort, a 70 to 80 minute-drive south of Manila. The resort started commercial operations in 1991, serving local and foreign tourists.
The Caylabne Bay Resort is part of Shang Properties’ landbank portfolio, which includes the 8.6-hectare Shangri-La Place in Ortigas Center, the 10,836 square meter KRC-Oasis project in Makati, the 107-hectare Sky Leisure Properties lot in Tagaytay and a 6.8-hectare property beside Shangri-La Mactan Island Hotel and Resort in Cebu.
In the nine months to September last year, profits of Shang Properties jumped 24 percent to P1.03 billion on strong sales of its residential condominium units.
Revenues climbed 75 percent to P3.7 billion as condominium sales grew more than five-fold to P2.05 billion, mainly driven by higher sales bookings from One Shangri-La Place in Ortigas and increased completion level of the group’s projects.
Shang Properties is also into the business of shopping mall (Shangri-La Plaza Mall), office space rental (Enterprise Center in Makati) and hotel operations (Shangri-La Hotel).
One Shangri-La Place, the company’s largest development to date, is targeted for completion sometime in 2014. It comprises twin skyscrapers housing 1,304 units above the six-level Shangri-La mall expansion.
The new mall will be home to over 150 shops and various restaurants when it opens to the public next year.
The 64-story Shang Salcedo Place, on the other hand, is located on a 3,045-square meter lot in Makati’s Salcedo Village. Estimated to cost around P5 billion, the project will offer a total of 778 units, targeted for turnover to residents by 2015.