Property firm Italpinas Development Corp. (IDC) received a strategic investment from businessman Benjamin Tan Co, a move that will enable it to fast track its plan to venture in other prime areas in the country.
IDC said in a statement over the weekend it finalized an investment agreement with Co for the purchase of 15 percent of IDC’s primary shares priced at P1.99 apiece. The deal was worth P188 million.
The selling price, calculated as book value of the company’s 2023 financial statement, represents a 43.1-percent premium to the stock’s closing price of P1.39 Friday.
“I believe that this synergy between the two groups will allow IDC to unlock its full potential in becoming the leading developer of sustainable properties in the country,” IDC president Jose Leviste III said.
Co is a prominent businessman and serial entrepreneur with a broad portfolio of interests in petrochemicals, PVC resins and products, steel manufacturing and others.
He and his family also control a broad portfolio of land holdings throughout the Philippines, including Palawan, Cavite, Boracay, Pampanga, Quezon Province and Quezon City.
“The Philippine economy has a bright and dynamic future, and this includes real estate, especially in areas outside Metro Manila that are still relatively underserved. With a track record of 15 years in the industry, its proven capabilities, outstanding Italian green architecture, and full commitment to sustainable development, IDC is a perfect strategic partner for me to join and develop my property portfolio,” Co said.
IDC obtained shareholders’ approval in 2022 to sell up to 20 percent of its primary new shares to an incoming investor.
“It has taken us over two years to find the ideal strategic investor. With his years of experience, and his prominence and reputation in the business community, Mr. Co will be a great partner to IDC as it continues to grow,” said IDC chairman and chief executive Romolo Nati.
The company and Co signed a co-development for a prime property in Puerto Princesa in June.
IDC focused on being an early mover in emerging locations, foreseeing the current shift in real estate focus from Metro Manila to peripheral areas.
The company also intends to develop assets in the tourism and hospitality market through a partnership signed with the Ascott Group last year.
