GT Capital Holdings Inc. is buying a minority stake in low-cost housing developer Property Company of Friends Inc. (PCFI) for P7.24 billion to expand its real estate portfolio.
GT Capital said it signed a deal to acquire 22.68 percent of PCFI, with an option to increase its direct shareholding to 51 percent within the next three years, the company disclosed to the Philippine Stock Exchange.
The acquisition marks the entry of GT Capital into affordable housing, as the country faces a supply shortage of more than three million homes.
PCFI is a subsidiary of Profriends Group Inc., which has postponed a planned 7.7 billion pesos initial public offer.
PCFI has built and sold over 36,000 affordable homes in Cavite and Iloilo. Its flagship project is Lancaster New City, which spans the areas of Kawit, Imus, and General Trias in Cavite.
“The low-cost housing segment is the real sweet spot in the country’s property sector, with a supply shortage of over three million homes, which continues to grow annually. Our partnership with GT Capital will strengthen our ability to be a leading player in serving this urgent market need. Moreover, the potential synergies of working with other component companies in the GT Capital group will enable us to offer our live, work, learn, play, and worship estates to many more middle income Filipino families,” PCFI chairman Guillermo Choa said in a statement.
Owned by the Philippines’ sixth richest man George Ty, GT Capital owns Federal Land Inc, a developer of mid-income and high-end apartments in Manila.
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