RCBC takes over unfinished building project in Global City

MANILA, Philippines—Yuchengco-led Rizal Commercial Banking Corp. is taking over an unfinished 33-story mixed-use building project in Bonifacio Global City spearheaded by its thrift banking subsidiary RCBC Savings Bank.

In a disclosure to the Philippine Stock Exchange, RCBC said its board had approved the assumption of rights and interest over the unfinished RCBC Savings Bank building project from other co-partners in the unincorporated joint venture.

But the bank noted that its takeover of this property project would still be subject to approval by the Bangko Sentral ng Pilipinas.

No other details were disclosed, but based on an Inquirer report in 2010, the Yuchengco group was originally planning to invest around P2.2 billion to put up the 33-story tower in BGC, which will rise on Block 4 of the former military camp.

RCBC Savings Bank and its parent bank RCBC, along with credit card unit Bankard Inc., entered into an agreement with insurance affiliates Great Pacific Life Assurance Corp. and Malayan Insurance Company Inc., to form a consortium for the pooling of their resources. The goal is the establishment of an unincorporated joint venture “for the construction and development of high rise, mixed-use commercial/office building.”

Under the original agreement, RCBC Savings will own 36.59 percent of the project while RCBC itself will own 23.16 percent. Mico Equities, the holding company for nonlife insurance of Malayan Insurance, will own 4.47 percent while Grepalife will own 4.47 percent.

Hexagonland, which owns the company Goldpath that in turn owns the land where the building will be built, was originally intended to own 17.42 percent.

But under the same agreement, RCBC Savings will liquidate Goldpath and Hexagonland to acquire ownership of the land, increasing its share in the project cost to 54.01 percent.

RCBC did not say which of these co-partners in the project it would buy out.

Under the original proposal, the 33-story building will have 25 office floors, three levels of basement parking and six levels of podium floors.