Infrastructure conglomerate Metro Pacific Investments Corp. is returning to the property business with a P1.6-billion investment agreement with Dusit International of Thailand.
MPIC and Dusit signed an agreement to develop and jointly manage hospitality and residential properties in the Philippines.
MPIC and Dusit will develop two hotels and three condominiums within the properties long held by the conglomerate in Batangas and upgrade Dusit’s properties in the Philippines this year.
“We hope to play a significant role in changing the landscape of this thriving industry in the Philippines through our partnership with Dusit International―a company with over seven decades of experience in bringing hospitality all over the world,” said MPIC chairman Manuel Pangilinan.
“We will seek to develop additional sites over time as demand grows for tourism and travel in the country,” he said.
MPIC’s newest real estate, hospitality and tourism subsidiary, Metro Vantage Properties Inc., will lead the design, development, marketing and sales of the real estate properties, while Dusit Thani Philippines will oversee the hospitality and tourism side of the business.
“This partnership comes at an ideal time as the tourism industry in the Philippines continues to expand. This is an opportunity for us to demonstrate our expertise in bringing distinct Thai hospitality and MPIC’s place in the Philippine market to deliver unique hotel experiences fulfilling the needs of our guests,” said Dusit International Group chief executive Suphajee Suthumpun.
Pangilinan said the company’s move to invest in real estate development was in line with its goal to seek investment opportunities that create value for stakeholders and contribute to the inclusive and sustainable development of the country.
“With this endeavor, we will support the tourism industry by developing thoughtfully-designed properties offering unique leisure experiences to travelers,” Pangilinan said.
MPIC said the deal, which took into consideration the currently restricted travel patterns, would be subject to certain specific performance conditions precedent, including the approval of the Philippine Competition Commission.
Metro Pacific exited property development in 2009 when it sold its majority stake in high-end leisure property developer Landco Pacific Corp.
The divestment was part of the rationalization of MPIC’s its investment portfolio which includes infrastructure, utilities and healthcare.