Smart Tower sale to property firm OK’d

The Philippine Competition Commission (PCC) has approved the proposed acquisition by the Consunji group’s DMC Urban Property Developers Inc. (DMCI-UPDI) of PLDT Inc.’s Smart Tower in Makati.

The deal covers the Smart Tower, a 36-story office building along Ayala Ave., and the land it was built on.

The value of the transaction was not disclosed.

However, PLDT chair and CEO Manuel Pangilinan said in January that the company was hoping to raise at least P5 billion from the sale. He didn’t identify the bidders back then.

The PCC said it was unlikely that the deal would hurt competition in the office leasing market in Makati and Bonifacio Global City (BGC).

“This is premised on the finding that there remain sufficient competitive constraints posed by larger competitors in the said market, and a high concentration of office spaces for lease in both cities, pre- and post-transaction,” the country’s antitrust body said.

“Also, the acquisition of the building is secondary to PLDT’s main business which is in telecommunications, and there will be no change in the structure of ownership or control in either party,” it added.

DMC-UPDI is engaged in leasing and property development. It leases office spaces in Makati and BGC, land in Davao and Antique, and land and improvement in Makati, Taguig and Manila. INQ