RETAIL magnate Lucio Co has continued to expand his footprint in the retailing and commercial property businesses with a deal to buy a new shopping center, through holding firm Cosco Capital, and a new chain of supermarkets, through Puregold Price Club Inc.
In a disclosure to the Philippine Stock Exchange on Friday, Cosco announced the acquisition of RFC Mall along Alabang Zapote Road in Las Piñas City. The property with a gross floor area of 23,000 square meters stands on a 7,600 square-meter (sqm) land.
In a separate deal, Cosco flagship unit Puregold announced the acquisition of eight supermarkets operating under the trade name Budgetlane. These supermarkets are located mainly in Luzon: one in Pasig City, two in Antipolo City, two in Rizal, two in Laguna and one in Batangas.
Cosco said the acquisition of RFC Mall was in line with efforts to grow its revenue and income bases. The acquisition was made through unit Ellimac Prime Holdings Inc.
The acquisition cost was below 10 percent of the total book value of Cosco, the company said. The selling parties were Evadel Realty & Development Inc. and E.A. Del Mundo Trading Inc.
Puregold acquired Budgetlane through wholly owned subsidiary Goldtempo Co. Inc.
“The acquisition reinforces the company’s continuing commitment and focus to serve the broad consumer mass market,” Puregold told the Philippine Stock Exchange. “It will serve as a key component to the growth and expansion strategies of the company.”
The amount of acquisition was likewise below 10 percent of the total book value of Puregold.
The acquisition comes on the heels of a similarly aggressive expansion program being mapped up by Puregold’s key competitors—the SM group’s SaveMore grocery chain and the Gokongwei group’s Robinsons Retail Holdings Inc.