House of Investments Inc. (HI), the listed and management holding company of the Yuchengco Group, said Monday it is diversifying into financial and property sectors after partially divesting from its construction business.
HI said in a disclosure to the stock exchange the move to venture into financial and property businesses is in line with its strategy to bolster its portfolio and optimize its organizational structure.
“Aiming to be an extensive conglomerate, we are putting in the groundwork necessary to make HI a bigger and better company. This initiative is centered on the reorganization of the group to amplify its overall value proposition, demonstrating HI’s continuous business development and its pursuit of growth opportunities across multiple sectors,” HI president and chief executive Lorenzo Tan said.
HI recently signed a P15.7-billion share swap agreement and acquired a 184-hectare property in Tarlac province.
It also plans to add more properties including A.T. Yuchengco Centre in Taguig City and a 28-story office building in Makati City
HI said it would also create a new financial services unit that will hold Malayan Insurance, Sun Life Grepa Financial and its existing 40-percent stake in RCBC Trust Corp.
“This foray into financial services underscores HI’s commitment to diversification and its ambition to play a more substantial role in the Philippine financial industry,” the company said.
HI has pending application with the Securities and Exchange Commission for the increase in the company’s authorized capital stock to enable it to hold a 77-percent stake in MICO Equities Inc., which owns Malayan Insurance, 51 percent in Sunlife Financial and 49 percent in Grepa Realty Holdings Inc.
HI’s core business includes car dealership, construction, education and property management services. It has been reducing its stake in construction unit EEI Corp. since 2023 and recently sold 46.632 million shares to a Singaporean firm for P337.4 million.
This reduced HI’s stake in EEI to 16.5 percent.
