High-end property developer Shang Properties Inc. has acquired more shares in its subsidiary KSA Realty Corp., driven by its optimism for the office property market, a company official said.
In a disclosure to the Philippine Stock Exchange on Tuesday, Shang Properties reported that it has purchased 85.77 percent of 207,082 shares of Ocmador Philippines B.V. in KSA.
Ocmador Philippines is a special purpose vehicle of ING Real Estate.
The share price was not disclosed by the companies.
In an interview following the firm’s annual stockholders’ meeting, Shang Properties Vice President and Financial Controller Kinsun Ng said the ING Group volunteered to sell their shares to Shang Properties.
“…the ING Group, they offered their shares to us,” Ng said.
He noted that the ING Group previously held a 20 percent stake in KSA.
KSA is the owner of the Enterprise Center, an office building on Ayala Avenue in Makati City. Aside from the ING Group, other shareholders of KSA include Shang Properties, with a 52.9 percent stake, A. Soriano Corporation (ANSCOR), with an 11 percent stake, and Flory Co. Inc., an affiliate of the Kuok Group with 15 percent.
Ng noted that the ING group has sold their shares in order to focus on other businesses.
“I think they are just adjusting their policies. I think they’re retreating from the property market. Actually what I heard, it’s not just in Manila. All over Asia I think,” Ng said.
The Vice President also expressed his optimism for the acquisition, as the country’s office property market remains strong.
“We manage the Enterprise Center. We know the track record. We know the market. I think this is a very good investment,” Ng said.
Asked if the firm is looking to launch more office projects this year, Ng noted that the firm is still looking for land.
“I hope so. Actually, we’re looking for land. If there’s a chance to find land, good property,
we’ll do it,” Ng said.
Ng said the company would like to build office projects within business districts in Metro Manila, but noted that it is difficult to find land in the Makati area.
“Makati is not easy. There are properties in Makati, but very small areas. Maybe less than 2,000 square meters. That’s not good for office buildings. But we’re still looking for land in other areas, maybe the Fort or other business areas,” Ng concluded.
Shang Properties is the property development arm of the Kuok Group in the Philippines.