PSE transfer to Bonifacio Global City still indefinite

A plan to relocate the Philippine Stock Exchange (PSE) in Bonifacio Global City requires further study given financial constraints and other issues that need to be threshed out among the bourse’s shareholders, a top bourse official said.

The Fort Bonifacio Development Corp. (FBDC) has donated a 2,182-square meter lot at the Bonifacio Global City in Taguig on which the PSE intends to transfer its headquarters from their current sites in Ortigas and Ayala.

PSE director Alicia Arroyo said the exchange is now reviewing its options to maximize value for shareholders. "It is the job of the PSE to review its options now which includes tax considerations as well as what to do with existing premises owned."

Another issue that might crop up is whether the new PSE building should be floorless, Arroyo said.

PSE entered into a definitive agreement with FBDC for the transfer of its offices to the Bonifacio Global City. Pursuant to this agreement, FBDC transferred a 2,182-square meter lot valued at over P182 million to a corporate vehicle named Crescent Development Corp.

The shares of Crescent will gradually be donated to the PSE over a seven-year period.

PSE has the option to construct the building that would house the PSE offices within the agreed period.

Under the agreement, FBDC shall develop the building on the property up to the core and shell state only, with a cost limit of P250 million and the PSE shall fit out and prepare the same for occupancy.

In this scenario, the PSE is mandated to occupy the premises for a period of seven years. However, if FBDC declines to construct the building and the PSE develops the property on its own or with a third party developer after seven years from closing date, the mandatory occupancy period shall be shortened to five years.

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