SRDC asset infusion cancelled

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    Supercity Realty Development Corp. (SRDC) said the infusion of asset by Manila Bay Development Corp. (MBDC) and George Chua is now shelved.

    SRDC said MBDC and Chua informed the company they are no longer pushing through with the planned infusion of 22.7 hectares of reclaimed land in Parañaque City into SRDC, citing market conditions.

    The transaction would have given SRDC a source of recurring rental income or future income from development projects, such as resort hotels, tourist related attractions with dining and entertainment, commercial areas with a sprinkling of upscale residential and serviced residential apartments and office buildings.

    The property’s proximity to entertainment and gambling clusters in the Manila Bay area is seen as an advantage to create a major attraction for locals and tourists alike.

    The transaction would have allowed MBDC and Chua to get 990 million shares in SRDC, worth P1.39 billion.

    SRDC said sans the infusion, it is still intends to serve institutional or corporate clients rather than individual homebuyers “in order to leverage on economies of scale for its construction projects.”

    At present, the company is focused on real estate developers that cater to the mass, low-cost and middle-scale housing markets, with operations in the Calabarzon and Quezon City areas.

    For this year, SRDC has outstanding contracts for the development of Terraverde Residences in Carmona, Cavite worth P61.38 million.