Lucio Co buys largest NE mall

MANILA, Philippines - Cosco Capital Inc., the investment vehicle of Puregold owner Lucio Co, has acquired the company behind the largest commercial mall in Nueva Ecija, marking its first buyout of a provincial shopping center.

In a regulatory filing, Cosco Capital said it purchased 100 percent of NE Pacific Shopping Centers Corp. (NEPSCC), the owner of NE Pacific Mall in Cabanatuan, Nueva Ecija.

“The acquisition is expected to contribute to the growth of Cosco Capital as it expands its real estate retail leasing portfolio,” the company said.

“It is in line with the objective of Cosco Capital to continually strengthen its source of sustainable recurring income,” it added.

NE Pacific Mall, the first large commercial mall in Nueva Ecija’s economic and financial center, has a gross floor area of more than 35,000 square meters (sqm) and sits on a 10-hectare lot.

The mall has a leasable area of over 23,000 sqm with a strong tenant base of more than 400 establishments consisting of fashion outlets, fastfood chains, specialty shops, supermarket, appliance center, game arcades, banks, government satellite offices and cinemas.

Infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) was one of the sellers, divesting all its shares in NEPSCC representing 36.89 percent of the issued and outstanding capital stock of the mall operator.

MPIC said its shares in the shopping mall operator were classified as non-core assets. A few years back, it unloaded some non-core assets, trimming its shares in companies like Landco Pacific Corp. as the holding firm focuses on toll roads, water utility, power distribution and healthcare.

“Cosco Capital also acquired the remaining issued and outstanding capital stock of NEPSCC from the other NEPSCC shareholders,” MPIC said.

Cosco Capital earlier announced its plan to put up as much as four community malls in provinces in Luzon such as Pangasinan and Tuguegarao. Its flagship unit Puregold Price Club Inc. will become the anchor tenant of the community malls.

Another unit, Nation Realty Inc. is the owner of the three-story 999 Shopping Mall located in retail hub Divisoria in Manila. The fully air-conditioned mall has more than 600 stalls and boutiques selling assorted goods at bargain prices.

In January to September last year, Cosco Capital’s net income more than doubled to P2.22 billion from P948 million a year ago. Its revenues jumped 35 percent to P54.4 billion from P40.25 billion, primarily driven by retail chain Puregold.