Real estate firm Italpinas Development Corporation (IDC) announced that businessman Benjamin Tan Co had invested about P188 million to acquire a 15 percent stake in the company as its new investor-partner.
In a statement, IDC said it has inked an agreement for the entry of Co as a strategic investor by way of private placement.
The investment finalized last Friday is a purchase of 15 percent of IDC’s primary shares priced at P1.99 per share (calculated as book value as of the company’s 2023 Financial Statement). This is a premium over IDC’s closing price of P1.39 per share last Friday.
IDC said Co is a prominent businessman and serial entrepreneur with a broad portfolio of interests throughout Philippine industry, including petrochemicals, PVC resins and products, steel manufacturing, and others.
The Co family and associates also control a broad portfolio of land holdings throughout the Philippines, including Palawan, Cavite, Boracay, Pampanga, Quezon Province, and Quezon City.
IDC originally secured approval for such a move in 2022 when its stockholders at its Annual Shareholders Meeting approved the transaction of up to 20 percent of primary new shares to an incoming investor.
“It has taken us over two years to find the ideal strategic investor,” said IDC Chairman and CEO Architect Romolo Nati.
He noted that, “A key decision such as this demands that we decide carefully and deliberately. With his years of experience, and his prominence and reputation in the business community, Mr. Co will be a great partner to IDC as it continues to grow.”
From inception, IDC has focused on being an early mover in emerging locations, foreseeing the current shift in real estate focus from Metro Manila to peripheral areas, which has been a major point of alignment between the company and Co.
Its existing locations show IDC’s propensity for unearthing prime development spots in areas on the cusp of pronounced growth.
Going forward, IDC intends to expand in multiple new locations throughout the country. The company also intends to develop assets in the tourism and hospitality market, following through from a partnership signed with the Ascott group last year.
“The Philippine economy has a bright and dynamic future, and this includes real estate, especially in areas outside Metro Manila that are still relatively underserved,” said Co.
He added that, “With a track record of 15 years in the industry, its proven capabilities, outstanding Italian green architecture, and full commitment to sustainable development, IDC is a perfect strategic partner for me to join and develop my property portfolio.”
The company and Co already signed a co-development JV for a prime property in Puerto Princesa last June.
“I believe that this synergy between the two groups will allow IDC to unlock its full potential in becoming the leading developer of sustainable properties in the country. We welcome our new investor, Mr. Co, to IDC,” said IDC President Jose D. Leviste.