GT Capital mulls own REIT launch Conglomerate

MANILA, Philippines — GT Capital Holdings Inc., the listed holding company of the Ty Group, may launch its own real estate investment trust (REIT) once Federal Land is able to bolster its recurring income.

Jose Crisol, senior vice president and head of investor relations, strategic planning and corporate communication department of GT Capital, said the group is open to listing its own REIT in the future.

“We always look at opportunities and if the right conditions are present, and if we are able to ramp up recurring income, that’s a possibility,” Crisol said.

“We’re always open to possibilities such as those because definitely, just like any conglomerate, we want to diversify and REITs are one vehicle toward that end. Sure if conditions are right, then we are able to develop more on the rental side, then we will definitely consider that,” he said.

GT Capital currently has business interest in real estate through its property arm Federal Land Inc.

GT Capital executive vice president and chief financial officer Francisco Suarez Jr. said Federal Land is trying to build its recurring income as a percentage of total revenue.

He said the company is aspiring to further grow its gross leasable space and is aspiring to achieve at least 15 to 20 percent in terms of contribution to total revenue in the medium to long-term.

“In the meantime, that’s the thrust, that’s the priority of Federal Land, to first grow its gross leasable area (GLA),” Suarez said.

“Its GLA pales in comparison with the other major developers wherein their GLAs are in the millions or over a million in terms of leasable area,” he said.

Federal Land reported revenues of P3 billion in the first quarter, while net income amounted to P291 million.

The company earlier this year reintroduced Riverpark, a 600-hectare multi-use, masterplanned community in General Trias, Cavite.

The property company also launched Meadowcrest, a new 48-hectare neighborhood community along the Sta. Rosa-Tagaytay growth corridor.

A major relaunch and estate improvements for the Met Park community in the BayArea in Pasay are also included in the pipeline with the intent to further bolster the Federal Land Communities product line.

Among Federal Land’s portfolio of completed projects include the iconic GT Tower International in Makati, the Marco Polo Plaza Cebu and Marco Polo Residences in Cebu.

The company launched its first project, the Tytana Plaza and Mandarin Mansion in Binondo, Manila, in 1976.

Federal Land said its expansion into developing contemporary townships built for a new era is a natural progression that reflects the company’s unwavering commitment to innovation and excellence.

GT Capital vice chairman Alfred Ty earlier told The STAR that the group is considering listing its property arm Federal Land once the company has put in place all the necessary components for a successful initial public offering.