IRC Properties sees Amaia land deal completed soon

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LISTED real estate firm IRC Properties Inc. is looking to finally sign a deed of sale with Ayala Land Inc. unit Amaia Land Corp. for the sale of a parcel of land from the company’s 2,000-hectare property in Binangonan, Rizal.

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“The initial sale of 20 hectares land is still in technical due diligence as of now. But we are looking to finalize it in the next two months,” IRC President Esteban Pena Sy told reporters after the firm’s annual stockholders’ meeting on Tuesday.

Pena Sy said there is no signed agreement yet, but there is an existing memorandum of understanding between IRC and Amaia Land.

At 2011 rates, the 20-hectare land (approximately 200,000 square meters) was priced at P100 million, following the land valuation of P500 per square meter.

Pena Sy said the proposed acquisition of Amaia Land is at 50 hectares and IRC is now working on the other 30 hectares, contingent on the clearing of land titles.

About 20- to 30-percent of the 2,000-ha Binangonan property is still undergoing clearing of titles as of end-July as several individuals in the area are claiming the parcels of land.

Pena Sy said Amaia plans to develop 1.3 million low-cost houses within the 50-hectare land, with funding coming from the Home Development Mutual Fund (Pag-Ibig).

The IRC president also said “there are at least three big players locally” which are interested and in talks with the company to acquire land in Binangonan, as well as to purchase some shares from the company.

Though declining to disclose names, Pena Sy said one is in the process of looking at IRC mother titles in the Binangonan lot, while the other one is in for a joint venture.

With the possibility of a share sale to the interested companies, Pena Sy said the company still needs to increase capitalization to as much as P3 billion from the current P1 billion, and be able to secure regulatory approval from the Philippine Stock Exchange and Securities and Exchange Commission.

Other than Amaia Land, Pena Sy said the developers present in the Binangonan area include Japanese group consisting of Tamurakenzai Co. Ltd. and S. Investments Inc., as well as a Chinese real estate group.

Incorporated in 1975, IRC was first involved in minerals, oil, and gas exploration and later changed its operations to real estate.

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