Security Bank has agreed to sell its 51.81-percent stake in upscale property unit Security Land Corp. in order to focus on its core banking businesses.
The bank told the Philippine Stock Exchange Wednesday that the block had been sold for P1.6 billion in cash, which was based on net present value of the property firm. The shares were sold to Keyland Corp., Adelantado Corp. and Blue Sphere Properties Inc.
Security Land is a joint venture among a Singaporean listed company, a local partner and Security Bank.
“The decision to sell our stake in Security Land Corp. was made for us to have a better focus on the three pillars of our business: wholesale banking, financial markets and retail banking,” said Security Bank president Alfonso Salcedo Jr.
Salcedo said the transaction was expected to be closed by the end of this year.
Proceeds from the divestment will be redeployed to the bank’s core businesses.
Security Land was incorporated in 1995 to engage in the acquisition and holding of investment in real estate. It is the owner of a prime property located along Ayala Avenue and Rufino Street, Makati City and parcels of land in Cavite.
This property company also has an existing joint venture agreement with Robinsons Land to develop residential units on its property at the corner of Valero and Rufino streets, Makati City. The upscale residential project consists of two residential condominium buildings (Tower 1 and Tower 2) named as Signa Designer Residences.