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Century Properties prepares for battle with Okada affiliate

Posted on March 27, 2014 10:14:18 PM

EAGLE I Land Holdings Inc. -- a Philippine company associated with the Okada Group -- has terminated its investment deal with Centuries Properties Group, Inc. (CPG), prompting the latter to consider “legal remedies,” CPG said in a disclosure yesterday.

In a portion of its disclosure titled: “Century and Okada disagree on land deal...” CPG said it received last March 16 “a notice of termination of the investment agreement from Jose Lis Leagogo of Eagle I Land Holdings, Inc.; Eagle II Holding Company, Inc.; and Brontia Ltd.”

Eagle I -- 60% owned by Eagle II and 40% by Brontia and which CPG last year described as “a Philippine affiliate of (Okada Group’s) Universal Entertainment Ltd.” -- had partnered with CPG in October last year to develop five hectares (ha) of land in the 44-ha Manila Bay Resorts site at the government’s Bagong Nayong Pilipino Entertainment City in ParaƱaque City into a luxury residential project.

The agreement involved CPG’s investment in 432 million voting preferred shares for some $12 million that would give it a 36% stake in Eagle I after an increase in the latter’s authorized capital stock; as well as a third party, First Paramount Holdings 888, Inc., that was buying 288 million preferred shares for $8 million that gave it a 24% stake in Eagle I.

CPG said in its disclosure that it sent a notice of dispute to Eagle I, Eagle II and Brontia last March 21 “which triggered a mandatory 21-day discussion period by the parties.” Noting the “21-day period is still effective,” CPG said it “is of the strong legal position that the notice of termination is not only premature, but also is unfounded as it lacks legal and contractual basis.” It added that it was taking steps -- including appointment of counsel -- “to protect and enforce its legal rights and interests in the investment agreement, memorandum of agreement and subscription agreement... all dated Oct. 31, 2013 before any court, tribunal, or agency within or outside the Philippines...”

An Eagle I official said only: “We now have to stop negotiation since one of the three parties withdrew the agreement, therefore we sent a notice of termination to Century Properties.”

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