Cebu-based retailer Metro Retail Stores Group Inc. said Monday it is reallocating P715 million raised from its initial public offering to build a distribution center in Sta. Rosa, Laguna.
MRSGI said in a disclosure to the stock exchange its board of directors approved the move to drop its plan to establish a distribution center in Cebu and instead build a new logistics facility in Laguna to serve the growing demand in Luzon.
“At present, the demand for warehousing and logistics requirements in Luzon has been increasing and can no longer be accommodated by the existing leased property in Silangan, Canlubang, Laguna, which currently serves as the distribution center of the corporation for Luzon,” MRSGI said.
“Furthermore, there is no assurance that the existing leased property can be renewed under favorable terms in the long term, and the corporation has a more viable alternative to construct its own distribution in Sta. Rosa City, Laguna,” it said.