RLC, Shang Properties to invest P10B in upscale residential complex in BGC
Gokongwei-led Robinsons Land Corp. (RLC) and upscale developer Shang Properties Inc. are jointly investing P10 billion to build a two-tower upscale residential complex with some commercial space in BGC.
RLC and Shang Properties will jointly develop a 9,118-square meter prime property of RLC at McKinley Parkway corner 5th Avenue, Bonifacio Global City, Taguig.
A portion of the development may also include serviced apartments and commercial spaces.
RLC and Shang Properties will each own 50 percent of the outstanding shares in the joint venture corporation to be formed, according to a disclosure to the Philippine Stock Exchange.
These property firms had long discussed teaming up to develop the property in BGC, now a prime central business district where land values have breached a record P1 million per square meter.
While RLC can develop the project on its own, it decided to partner with Shang Properties, which has a good track record in delivering upscale residences in the Philippines.
Based on the disclosure, the joint venture corporation also plans to pursue other development projects. The new corporation will be managed by a board of directors composed of six members of which RLC and Shang Properties will each nominate three directors.
The joint venture agreement had been cleared by the country’s antitrust agency Philippine Competition Commission, which is mandated to review mergers, acquisitions and joint ventures of firms across all sectors that meet the threshold, to ensure that these deals will not harm the interest of consumers.
RLC, one of the country’s leading property developers, is the real estate investment arm of conglomerate JG Summit Holdings Inc. Shang Properties, for its part, is engaged in hotels, lease of commercial and office spaces, development and sale of luxury residential condominiums and property management. —DORIS DUMLAO-ABADILLA
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