GT Capital takes majority stake in Pro-Friends

MANILA, Philippines - GT Capital Holdings Inc. has increased its stake in Property Company of Friends Inc. (Pro-Friends) to a majority 51 percent from an initial 22.7 percent stake, way ahead of its plan to do this next year.

“There was substantial compliance on the milestones and our agreement allows the increase in stake,” GT Capital chief financial officer Francisco Suarez Jr. said yesterday.

In a separate disclosure to the Philippine Stock Exchange, the Ty-controlled conglomerate said it acquired an additional 28.3 percent equity in Pro-Friends for P8.76 billion pursuant to an agreement last Aug. 6.

Profriends Group Inc., the principal shareholder of Pro-Friends, has ceded control of the company in favor of GT Capital.

Consequently, the financial statements of Pro-Friends have been fully consolidated into GT Capital since August 2015.

GT Capital co-vice chairman and Pro-Friends chairman Alfred V. Ty said the move expands GT Capital’s property portfolio.

“Our increased investment into Pro-Friends is in line with our intention to expand GT Capital’s property product offerings, ranging from Federal Land’s upper-mid end developments to Pro-Friends’ affordable residential and mixed-use communities. In addition, we can further enhance synergies between our property projects and our other component companies,” he said.

Pro-Friends president Guillermo C. Choa said demand in the affordable property sector continues to outstrip supply.

“Our partnership with GT Capital will further allow us to deliver quality yet affordable homes that serve our customers and take advantage of synergies within the group. Our Lancaster New City, which is strategically located near key infrastructure projects, enables us to offer our live, work, learn, play and worship estates to many more Filipino families,” he said.

Established in 1999, Pro-Friends focuses on the low-cost and economic housing segments, and retail and office space leasing.

It has built and sold over 36,000 affordable homes in the provinces of Cavite and Iloilo, with Lancaster New City as its flagship and largest project spanning the towns of Kawit, Imus and Gen. Trias in Cavite.

It is highly accessible from Metro Manila via major roads and transport systems such as the Manila-Cavite Expressway (Cavitex) and the upcoming LRT-1 Extension. The township also houses several business process outsourcing (BPO) firms and retail outlets.

GT Capital is a listed major Philippine conglomerate with interests in market-leading businesses across banking, automotive assembly, importation, and dealership, infrastructure, water, power, toll roads, healthcare, and rail, property development, and life and non-life insurance.