Manila, Philippines - The Po family, which controls leading fish canning firm Century Pacific Group, has acquired a 33.85-percent stake in publicly-listed ArthaLand for P450 million, marking its entry into real estate development with the P4.5-billion Arya Residences in Bonifacio Global City as its flagship project.
CPG Holdings Inc., the Po family’s investment vehicle, bought a total of 1.8 billion common shares of ArthaLand for P0.25 each, a premium from the P0.196 closing price last Wednesday when the block sale was effected at the stock exchange.
Of the 1.8 billion common shares, 1.6 billion were purchased from AO Capital, whose stake in ArthaLand will be diluted to a third. AO Capital is an investment firm headed by businessman Jaime C. Gonzalez, who also chairs ArthaLand. The balance of 200 million came from new shares.
Christopher Po, president and chief executive officer of CPG Holdings, said they are excited about this new venture and are looking forward to a long-term relationship with ArthaLand.
“We’ve always been open to diversification. We are excited by this opportunity to partner with the ArthaLand team and we view this as a long-term investment. A major consideration for our participating was the depth of real estate experience that the ArthaLand team brings to bear, with key executives coming from some of the country’s top property developers,” he said.
Po said the company was also attracted to ArthaLand’s landbank, which includes prime locations in BGC, seen to provide a pipeline of attractive projects into the medium-term.
“This combination of management talent and good locations give us confidence that the company will deliver high quality and differentiated products even in a crowded and competitive real estate market,” Po said.
Gonzalez, for his part, said CPG’s entry would could further build investor confidence in the listed property firm. “It’s a great honor for CPG to invest in ArthaLand, their contribution goes beyond that given their significant expertise in marketing and developing brand loyalty. CPG is a highly professional group,” he said.
Po said while his group would be active on the board, they would leave the real estate operations to the present management.
Century Pacific Group owns marine and tuna enterprise Century Canning Corp., which produces the market-leading Century Tuna, 555 Tuna, Blue Bay Tuna and Fresca Tuna brands.
CPG also owns Argentina Corned Beef, Angel Filled Milk, and Birch Tree Powdered Milk, Kaffe de Oro and Home Pride, Yoshinoya and WOW brands.
Gonzalez said proceeds from the sale would be used to fund the working capital requirements as well as the construction of first of the two towers of Arya Residences, the country’s first and only luxury residential development registered with the Leadership in Energy and Environmental Deisgn (LEED) for gold certification.
LEED is a US organization which sets world standards for green buildings and sustainable developments.
The first tower will house 301 units with sizes ranging from 66 square meters to 225 square meters. The units are priced at between P8 million-P31 million.
Angela De Villa-Lacson, president and chief executive officer of ArthaLand, said Arya Residences is now over 50 percent sold since its launch last year with the first tower expected to be turned over to residents by 2014.