House of Investments, Inc. (HI) has diversified into the real estate business with the acquisition of A.T. Yuchengco Centre from sister company Rizal Commercial Banking Corporation for P6.07 billion.
In a disclosure to the Philippine Stock Exchange, HI said “The purchase is related to the realignment of the businesses of YGC (Yuchengco Group of Companies) and to strengthen the conglomerate’s position with a more holistic approach in the property development and management sector.” HI said it will be incorporating a wholly-owned subsidiary that will hold the land and building acquired.
With the acquisition, HI said it is expanding into the Property Services Sector to diversify the firm’s revenue and income profile while owning an asset that appreciates over time.
It added that the move is earnings accretive as ATY Centre is an operating asset that will contribute to the bottom line of the company. Leasing income will prospectively provide HI with recurring income that will reduce its risk profile.
A.T. Yuchengco Centre is a 34-storey tower located at the heart of Bonifacio Global City in Taguig. As one of a limited number of structures accredited by the Philippine Economic Zone Authority (PEZA), it gives special access to tax incentives and government assistance.
The building is especially designed for BPO offices following the quality standards of BPO-grade specifications.
The skyscraper houses 25 office floors comprised of 10 BPO-grade floors, 14 regular office floors, and one data center, with nine basement and podium parking floors.
A.T. Yuchengco Centre is being leased to financial institutions, BPOs, and corporations as their corporate office, among others. House of Investments through the new company intends to continue the leasing operations of the asset.