PRCI acquiring Paco lot for new headquarters

MANILA, Philippines - Horse racing operator Philippine Racing Club Inc. (PRCI) is spending more than P200 million for the purchase of a Paco property for its new headquarters.

In a regulatory filing, PRCI said its board of directors approved the plan to purchase a 1,924-square meter lot partly owned by its chairman emeritus Santiago Cua.

“The purchase of the property is for the purpose of using it as the main office of PRCI,” the company said.

PRCI earlier transferred its main office to Paco, Manila from Makati to give way for the development of Circuit Makati.

The 21-hectare Circuit Makati, formerly the Sta. Ana racetrack, is the P20-billion mixed-use development anchored on entertainment experiences of property giant Ayala Land Inc. (ALI) and PRCI.

PRCI said the P210 million purchase price, exclusive of value-added tax, will be paid in cash.

“The funding for the purchase will come partially from internally generated funds and from loans,” it added.

The property was appraised by Asian Appraisal Co. Inc., which valued the lot at P211.25 million as of June 15, 2013.

“The purchase of the property is through a deed of absolute sale. The date of acquisition is yet to be scheduled within the year,” PRCI said.

The horse racing operation of PRCI was previously located in Sta. Ana district in Makati before moving to Cavite.

The partnership, which includes the construction of residential towers, office space and a shopping mall, will generate cash flow for PRCI through its economic interest in Circuit Makati. For instance, PRCI will have an 18 percent share in the residential projects under ALI’s Alveo brand.

To date, PRCI owns and operates a racetrack complex in Naic, Cavite. Its franchise to conduct horse racing operations is in effect until 2022.

The franchise allows the listed firm to build, operate and maintain one racetrack in Makati or anywhere within the provinces of Rizal, Laguna and Cavite, and conduct horse races therein. Under the franchise, PRCI may take or arrange bets for races conducted in or outside the Philippines.

So far, only 15 hectares of PRCI’s 65-hectare property in Naic, Cavite is being used particularly as a horse racing venue.

The Cavite property can be developed into a mixed-use project under another joint venture.