The Philippine Competition Commission (PCC) has approved the joint venture between Robinsons Land Corp. (RLC) and Shang Properties, Inc. (SPI) to develop a property in Bonifacio Global City (BGC).
In a statement sent on Wednesday, the competition watchdog said it had signed a decision on March 20, after noting that the deal would not substantially lessen competition in the market.
PCC reviews mergers, acquisitions and joint ventures that reach a certain transaction threshold to ensure that the deals will not harm consumer interest.
The joint venture will develop a 9,118-square meter property of Robinsons at McKinley Parkway corner 5th Avenue, Bonifacio Global City, Taguig.
According to PCC, the development will feature two luxury residential condominiums, with the potential of converting a portion of the development into serviced apartments and commercial spaces.
“There are enough existing competitive constraints on the parties after the transaction,” the statement said, citing the decision.
Both firms are publicly listed corporations.
RLC is the real estate investment arm of JG Summit Holdings, Inc. On the other hand, SPI, through its subsidiaries, are engaged in hotels, lease of commercial and office spaces, development and sale of luxury residential condominiums and property management.
RLC and SPI have agreed to subscribe to shares of stock of the joint venture company, which will result in each party owning 50 percent of the outstanding stock of the venture.
In addition, both parties will extend shareholder advances at fair and commercial rates comparable to loans extended by third party banks and financial institutions to the joint venture company in equal amounts, PCC said.