Vista Land and Lifescapes Inc. and Polar Property Holdings Corporation jointly announced today the acquisition by Vista Land from Polar Property and certain individual shareholders of the entire issued and outstanding capital stock of Polar Mines and Realty Ventures Inc. (PMRVI), a real estate firm focusing on the development of mid and high rise buildings for residential and commercial use. PMRVI’s on-going projects include Presidio Complex, Symphony Tower, Crown University Belt Tower, and Madison Tower.
The transaction between Vista Land and Polar Property was done via a property swap, with Vista Land conveying 320,686,000 of its common shares held in treasury to Polar Property in exchange for the shares of PMRVI held by Polar Property, representing an approximately 97% ownership in the company, and receivables owing from PMRVI to Polar Property with total principal amount of PhP702.65 million. Based on the closing price as of October 28, 2009, the 320.686 million shares of Vista Land had a market value of approximately PHP 641.4 million. The Board of Directors of both companies unanimously approved the transaction.
According to Vista Land senior management, the acquisition of PMRVI, which will be renamed Vista Towers, is part of the company’s long-term strategy to broaden its real estate portfolio and increase its revenue base. Vista Land has been widely viewed primarily as a pure housing developer and is the industry leader in terms of the total number of houses constructed. The addition of a fifth subsidiary concentrating on vertical developments is expected to complement Vista Land’s existing product offerings which cover practically all price segments.
“This acquisition will broaden our real estate presence and should allow us to become a significant player in the vertical segment of the market, “said Ricardo B. Tan, Jr. Senior Vice President for Finance of Vista Land. “As the real estate industry continues to recover, we should see renewed interest in condominium developments. We expect Vista Towers to further raise our profile in the vertical segment and accelerate revenue growth by increasing the breadth of our product offerings,” he added.
Mr. Jerry M. Navarrete, Chairman and President of Polar Property, said that after its disposition of PMVRI, Polar Property will concentrate on the development of commercial projects. “The transaction is consistent with our strategy to focus our efforts primarily on the commercial real estate sector. At the same time, our resulting stake in VLL will enable us to share in the benefits from the expected growth of Vista Land over the coming years”, he stated.
With a track record spanning over three decades, Vista Land and Lifescapes, a holding company of four major subsidiaries, is the country’s leader in housing development. Listed on the Philippine Stock Exchange, it caters to virtually all price segments in the market through its three well-known brands – Brittany, Crown Asia, and Camella. In 2008, the company generated over PHP10 .4 billion in revenues and reported a net income of PHP2.83 billion.