Vista Land completes 1st tranche of acquisition of Starmalls

MANILA, Philippines - Vista Land & Lifescapes Inc. (VLL) has moved a step closer to acquiring Starmalls, with the completion of the first stage.

“We disclose that the first tranche of the acquisition has been completed on Dec. 22 with the crossing from the Fine Group to VLL of a total of 6.69 billion common shares representing approximately 79.43 percent of the total outstanding common capital stock of Starmalls,” VLL said yesterday.

VLL is acquiring approximately 88.25 percent of the outstanding common capital stock of Starmalls.

 The company disclosed last November it was acquiring Starmalls in a deal valued at P33 billion and which will combine the residential and shopping mall businesses of billionaire Manuel Villar.

 The acquisition strengthens Vista Land as the country’s fourth largest integrated property developer and allows the company to seal partnerships for self-contained communities.

VLL chief executive officer Manuel Paolo Villar, son of former Senator Manuel Villar, said the acquisition would accelerate the company’s transition to a fully integrated developer.

He said integrating both residential and commercial developments would enable the property firm to achieve higher selling prices, increased sales velocity and higher retail rental rates.

VLL and Starmalls are both principally owned by the Villar Family.

The Fine Group will in turn subscribe to approximately 4.6 billion new Vista Land shares at 7.15 per share.

Vista Land will make a tender offer for the remaining Starmalls shares not held by the Villar group. The offer is expected to be completed, along with the sale to Villar’s group on Feb. 17, 2016.

At present, Starmalls owns and operates 10 retail malls in key cities and municipalities, and two business process outsourcing (BPO) commercial centers in Metro Manila, with a combined gross floor area of 509,385 square meters.