Metro Pacific Investments Corp. has signed a P1.6-billion investment agreement with Thai hotel group Dusit International of Thailand to develop and manage jointly hospitality and residential properties in the Philippines.
This marks the return of the Metro Pacific Group in real estate development after its restructuring in the post-Asian financial crisis, where the company saw itself selling off assets to tide the pressure of its over-leveraged expansion when the crisis hit.
One of the previous assets of Metro Pacific (then Metro Pacific Corp. or MetroPac) is Bonifacio Global Global City which was sold to the Ayala Group because of the crisis.
“Starting this year, Metro Pacific and Dusit will focus on the development of two hotels and three condominiums at sites long held by Metro Pacific in Batangas, as well as upgrading Dusit’s existing properties in the Philippines,” the company said.
“Metro Pacific’s newest real estate, hospitality and tourism subsidiary, Metro Vantage Properties Inc. (MVPI) will lead the design, development, marketing and sales of the real estate properties, while Dusit Thani Philippines will oversee the hospitality and tourism side of the business,” it added.
The company did not identify its properties in Batangas, but Metro Pacific’s records show that it holds a 38.1 percent interest in Landco Pacific Corp. with which it had a joint venture prior to the Asia financial crisis.
Landco has a number of developments in Batangas like Playa Laiya in San Juan, and Playa Calatagan in Calatagan.
“We hope to play a significant role in changing the landscape of this thriving industry in the Philippines through our partnership with Dusit International, a company with over seven decades of experience in bringing hospitality all over the world,” said Manuel V. Pangilinan, Metro Pacific chairman.
“We will seek to develop additional sites over time as demand grows for tourism and travel in the country,” he added.
Pangilinan said Metro Pacific’s “fundamental goal is to seek investment opportunities that create value for our stakeholders and contribute to the inclusive and sustainable development of our country.”
“With this endeavor, we will support the tourism industry by developing thoughtfully-designed properties offering unique leisure experiences to travelers,” he said.
The investment agreement, which takes into consideration currently restricted travel patterns, is subject to certain specific performance conditions precedent, including the approval of the Philippine Competition Commission, Metro Pacific said in a statement.
