Monday, April 28, 2008 [ philstar.com ]
Shang Properties Inc., the property development arm of The Kuok Group, has tapped a P3.5-billion term loan from Metropolitan Bank and Trust Co. (Metrobank) and the Bank of the Philippine Islands (BPI).
The Malaysian-owned Kuok Group is one of Asia’s biggest highly diversified conglomerates.
Shang Properties owns a 26-hectare property in the Ortigas Complex where the Shangri-La Plaza Mall and EDSA Plaza Hotel are situated. It also holds controlling interest in Shangri-La Plaza Corp., The Shang Grand Corp. and KSA Realty Corp.
The long-term credit facility will partially finance Shang Properties’ development projects in Metro Manila and will form part of a three-year investment program estimated at P11 billion.
The development projects include the extension of the Shangri-La Plaza Mall in the Ortigas complex, the construction of residential condominium towers on top of the mall and its investment in an upscale mixed hotel and residential condominium at the Bonifacio Global City central business district in Taguig City.
The Kuok Group recently acquired a 15,120-square meter property located at the “West Super Block” of Global City from the Fort Bonifacio Development Corp. (FBDC). A high-end mixed used residential apartments and hotel will be constructed in the area.
Metrobank executive vice president Vicente Cuna Jr. said the loan agreement would stimulate more investment activities in the country, especially in the property sector.
“And we hope to further expand this relationship over the long term,” he added.
He said that the credit facility demonstrates the strong confidence of the industry leaders in the country’s growing property sector and their ability to weather economic pressures brought about by the financial turmoil resulting from the subprime credit crisis in the US.
Both Metrobank and BPI are affiliated bigger conglomerates that are also involved in property development.
The Metrobank Group has under its wings property development firm Federal Land Inc. while BPI is a sister company of Ayala Land, one of the country’s leading property developers.
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