House of Investments (HI), the listed investment holding and management company of the Yuchengco Group of Companies (YGC), is acquiring a 184-hectare property in Tarlac province for P2.7 billion.
The acquisition is in line with the group’s move to diversify and expand its property portfolio, HI said in a disclosure to the stock exchange Wednesday.
HI said its wholly-owned unit Tarlac Terra Ventures Inc.(TTVI) would purchase the property from Rizal Commercial Banking Corp., which is also part of YGC.
The property is located within the Central Techno Park in Luisita Industrial Park. It will be funded through a combination of equity and debt.
HI said that aside from expanding its property portfolio, the acquisition would also diversify and provide future revenue and income profile of the group as the property is located in a prime area in Tarlac.
“Once developed, the asset will contribute to the bottom line of House of Investments,” the company said.
TTVI will make an initial 20-percent downpayment, with the balance payable in three yearly installments. It also has the option to pay or settle the balance in a shorter period.
HI’s board of directors approved in November the creation of a new wholly-owned subsidiary that will engage in real estate activities.
HI’s core business focus is organized into four segments including car dealership, construction, education and property management services. It owns stakes in EEI Construction Corp. and iPeople Inc.
It also has portfolio investments in pharmaceuticals, energy and death care.
The company recently ventured into infrastructure development after joining a consortium that bagged the $11-billion (P630-billion) Sangley Point International Airport Project.
It also teamed up with GMR Airports International B.V. and Virata-led Cavitex Holdings Inc. to bid for the P170.6-billion Ninoy Aquino International Airport rehabilitation project.