MANILA, Philippines - Puregold Price Club Inc. of retail tycoon Lucio Co is expanding its presence in Nueva Ecija and other provinces north of Metro Manila as it gobbles up more supermarkets and commercial properties owned by Nueva Ecija-based retailer NE Inc.
Puregold told the local bourse yesterday that it acquired nine supermarkets from NE located in Cabanatuan and San Jose, Nueva Ecija; Baliwag, Bulacan; Baler, Aurora and Santiago, Isabela.
Puregold said the acquisition will increase its net selling area and revenue base.
“The additional stores will also make Puregold the dominant retail player in the province of Nueva Ecija,” the country’s second largest grocery chain said.
Aside from the supermarket chain, Cosco Capital Inc., the investment vehicle of Co, also purchased five commercial properties owned by NE.
The commercial properties, which already consist of buildings and improvements, are located in Zulueta St., Cabanatuan City; San Jose City, Nueva Ecija; San Juan Accfa, Cabanatuan City; Baler, Aurora and Santiago City, Isabela.
In a phone interview, Puregold president Leonardo B. Dayao said three of the newly-acquired commercial properties would be redeveloped into community malls.
These properties are in Baler, San Jose City and Cabanatuan.
Aside from the aggressive expansion of its Puregold chains nationwide, Cosco is into the development of several community malls over the near term.
Dayao did not disclose the cost of the acquisition of the supermarkets and commercial properties, but noted that it is “from eight to 10 times more than the projected earnings” of the acquired assets.
The firm in March last year acquired NE Pacific Shopping Centers Corp. (NEPSCC), the company behind the 35,000-square meter NE Pacific, the largest commercial mall in Nueva Ecija.
NEPSCC’s acquisition has already contributed to Cosco’s real estate business last year, pushing profits higher by 19 percent in the first nine months of 2014 to P565 million.
This year, Puregold, which is 51 percent owned by Cosco, is spending P2.5 billion to open 25 new stores.