Italpinas expands Cagayan de Oro development
MANILA, Philippines — Boutique developer Italpinas Development Corp. (IDC) has formed a joint venture with a contractor to expand its mixed-use development in Cagayan de Oro City as property demand outside Metro Manila grows.
In a stock exchange filing on Monday, IDC said it had partnered with AV Pamatong Trading and Construction Inc. (AVP) to develop residential, office and commercial units within the Primavera City complex. These will comprise the “Citta Grande” phase of the project.
Under their agreement, IDC subsidiary IDC Prime will provide the land, while AVP will lead structural and masonry work.
AVP will own 24 percent of the total number of units, while IDC Prime will own the remaining 76 percent.
“Having known each other for over 15 years and having a proven working relationship, we are confident that this collaboration will produce excellent results for our community,” IDC chair and CEO Romolo Nati said in the disclosure.
AVP’s major infrastructure projects include flyovers and airport construction in Mindanao, IDC said.
The contractor was previously tapped to help develop the first phase of Primavera Residences and Primavera City.
Apart from Citta Grande, Primavera City is also composed of the Citta Verde, Bella and Alta phases, all of which are mixed-use and high-rise developments.
The partnership comes amid the continued popularity of properties outside Metro Manila.
Data from real estate broker Colliers Philippines show that in the fourth quarter of 2024, residential vacancy in the capital region had reached an all-time high of 23.9 percent. Meanwhile, projects in other regions “performed well, while some mid-income vertical projects outside Metro Manila are nearly sold out,” Colliers said.
Private placement
Last year, IDC welcomed businessman Benjamin Tan Co as its new investor to facilitate its nationwide expansion.
Co bought P187.93 million worth of IDC’s shares, equivalent to a 15-percent stake, via private placement.
READ: Entry of new investor heralds expansion of Italpinas
The company had already engaged Co, whose family has several landholdings in the country, for a project in Puerto Princesa, Palawan.
IDC also announced last December it would soon carry Dusit-branded hotels within its Mindanao developments in hopes of meeting hospitality and tourism demand in the country’s second-largest island group.
IDC Prime had signed agreements with Dusit Thani Public Co. Ltd. and Dusit Thani Philippines Inc. for the global hospitality giant’s debut in Bukidnon and Cagayan de Oro.
