Property tycoon Andrew Tan has completed the consolidation of his real estate businesses under flagship Megaworld Corp. with the latter’s takeover of a controlling stake in the group’s leisure estate arm Global-Estate Resorts Inc. (Geri).
In a disclosure to the Philippine Stock Exchange on Friday, the group announced that Megaworld would purchase the 49.2 percent stake in Geri held by parent conglomerate Alliance Global Group Inc. for P10.43 billion or P1.93 per share.
After the acquisition, Megaworld will own 74.96 percent of Geri. The group said this acquisition would complete the consolidation under Megaworld of all real estate businesses of AGI, enabling Megaworld to “capitalize on real estate opportunities and capture the expected growth momentum of its real estate affiliates.”
“We are excited that this consolidation will enable us to further capture the growth in the tourism sector through Geri’s projects. The exposure to the tourism industry will also complement our leadership position as the number one BPO office landlord in the Philippines which are considered as key growth drivers of the Philippine economy in the next decade. The consolidation will also increase our landbank all over the Philippines to more than 3,900 hectares,” said Francis Canuto, Megaworld chief finance officer.
Geri is a leading tourism estate developer in the country. Its projects include the 150-hectare Boracay Newcoast in Boracay Island; the 1,149-hectare Twin Lakes in Tagaytay; the 34-hectare Sta. Barbara Heights in Iloilo City and the 561-hectare Southwoods City in the boundary of Carmona, Cavite and Binan, Laguna which now being developed into a fully- integrated master-planned township development.
Megaworld, on the other hand, is a residential condominium and township developer, which include Eastwood City in Quezon City, Newport City in Pasay City, McKinley Hill, Uptown Bonifacio and Forbes Town Center in Bonifacio Global City.
It has a total of 712,000 square meters in office space inventory this year.
It also owns 82 percent of Empire East Land Holdings and 100 percent of Suntrust Properties Inc.