By James A. Loyola
GT Capital Holdings Inc., the investment arm of the Ty family, is divesting its 51 percent stake in real estate firm Property Company of Friends Inc. (Pro-Friends) in exchange for about P20 billion worth of land.
In a disclosure to the Philippine Stock Exchange, the firm said it has executed an agreement for the redemption of its stake in Pro-Friends in exchange for 702 hectares of selected assets located mostly within Lancaster New City (LNC) in Cavite.
LNC is PRO-FRIENDS’ flagship and largest property development project.
The properties to be transferred to GT Capital in LNC include land bank strategically located along Daang Hari Extension and the future Cavite-Laguna Expressway (CALAX), which is linked to the Cavite Expressway (CAVITEX).
“This amicable proposed redemption allows both parties to focus on our respective areas of expertise,” GT Capital Vice Chairman Alfred V. Ty said.
He added that, “I look forward to a master-planned community that will integrate the needs of existing residents, as well as those of the development’s future population, for many generations to come.”
“Given the scale of future redevelopment being considered, the existing residents within LNC will stand to gain significantly from the adjacent areas,” PRO-FRIENDS President Guillermo C. Choa said.
In 2018, PRO-FRIENDS realized revenues of P10.4 billion from P6.9 billion in 2017, representing a year-on-year growth of 50 percent. Its net income rose 63 percent to P1.2 billion in 2018 from P723.1 million in 2017.