MANILA, Philippines—Construction and engineering firm Megawide Construction Corp. is acquiring a 15-hectare property in Taytay, Rizal, for its P1-billion one-stop pre-cast concrete manufacturing facility.
In a disclosure to the Philippine Stock Exchange, Megawide said its board had approved the acquisition of Altria East Land through a share-swap deal. Altria in turn owns the property where the pre-cast manufacturing plant was now being constructed. Altria and Megawide have some common stockholders.
The board also gave authority to Megawide chief finance officer Oliver Tan to transact and negotiate with Altria and sign and execute all documents necessary for the transaction.
Upon the completion of the deal, Megawide will own 100 percent of Altria. It will be able to book Altria’s Taytay property as part of its asset base instead of paying rent.
“The main reason (for purchasing the property) is to save on expenses. The plant of Megawide will run for at least 30 years and it would be expensive to continue renting the property, especially with the expected escalation of rates,” said Megawide director and spokesperson Louie Ferrer.
The value of the share-swap deal with Altria is still subject to appraisal, Ferrer said.
Ferrer added that the manufacturing plant, once completed, would be the first of its kind in the country and one of the largest pre-cast manufacturing facilities in the region.
The pre-cast plant will allow the Megawide to put up buildings much faster while reducing cost of construction by 30-40 percent. For instance, a five-story condominium that would currently take at least six months to construct in the Philippines could be delivered in 45 to 60 days.