GT Capital completes acquisition of 51% of Pro-Friends
by James Loyola / July 1, 2016 / Manila Bulletin
GT Capital Holdings, Inc. has acquired an additional 28.3 percent equity stake in the land developer Property Company of Friends, Inc. (Pro-Friends) for P8.76 billion.
In a disclosure to the Philippine Stock Exchange, GT Capital said this is pursuant to an agreement it entered into with Pro-Friends on August 6, 2015. The deal increases GT Capital’s economic stake in Pro-Friends from 22.7 percent to 51.0 percent.
The initial subscription by GT Capital of its 22.7 percent stake in Pro-Friends also included the ceding by Profriends Group, Inc. (PGI), then Pro-Friends’ principal shareholder, of control in favor of GT Capital.
GT Capital - Pro friends
Consequently, the financial statements of Pro-Friends have been fully consolidated into GT Capital since August 2015.
“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,” GT Capital Co-Vice Chairman and Pro-Friends Chairman Alfred V. Ty said.
He added that, “we can further enhance synergies between our property projects and our other component companies.”
Pro-Friends President Guillermo C. Choa explained that, “underpinned by the continued growth of the Philippine economy, 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.”