MANILA, Philippines - Metro Pacific Investments Corp. (MPIC) has sold an additional 15% stake in upscale property developer Landco Pacific Corp. to AB Holdings Corp. for an undisclosed amount.
The sale brought down MPIC's interest in Landco to 19%, and increased AB Holdings' stake to 81%.
MPIC chairman Manuel Pangilinan remains as chair of Landco's board of directors.
“Landco is a core business for AB Holdings so it made sense for us to reduce our stake to 19%. We look forward to continuing our 16-year relationship with Landco as a minority shareholder," said Pangilinan.
Landco president and chief executive Alfred Xerex-Burgos, who owns AB Holdings, said his company is consolidating its foothold in the real estate market.
“We are confident that with the dawn of a new administration, real estate prospects remain bright in 2010. Landco will continue to do what it does best, delivering projects with premium quality that our select clientele can be proud of.”
MPIC will extend a P175-million loan to Landco and acquire 380 million of the property firm's preferred shares with a 10-year redemption period.
Landco plans to use the proceeds to fast track the development of its current projects.
Landco, which is engaged in high-end leisure, urban and hometown community projects, is spending P1.1 billion for expansion this year.
The company booked a net income of P166 million last year, a 400% growth from P42 million in 2008.