BDO Unibank is now the sole owner of The Podium West Tower and The Podium Mall after purchasing the remaining 50 percent stake in the project from the Philippine-based subsidiary of Keppel Corporation through the jointly owned SM Keppel Land (SMKL).
It was a cash sale with the Straits Times reporting that BDO Unibank acquired the mall and office complex for approximately PHP8 billion. The deal is still subject to regulatory approval and must be signed off on by both Keppel Philippines Properties and Opon-KE Properties shareholders.
“By this acquisition, BDO will consolidate its ownership of the Podium Complex, presently 50 percent owned by SMKL, consisting of BDO’s Corporate Center Ortigas, the West Tower and the Podium Mall,” a disclosure sent to the Philippine Stock Exchange explained.
The sale of BDO Unibank aligns with the goals of both BDO Unibank and Keppel Corporation. For the bank, it now takes sole ownership of the building where its Ortigas operations are based. BDO currently occupies 63 percent of the office space in the complex.
Meanwhile, the divestment allows Keppel to unlock capital which it plans to use on new growth opportunities. The disposal is expected to be completed by the first half of this year.
“The consideration was arrived at on a willing-buyer, willing-seller basis, taking into account, among others, the agreed value of The Podium West Tower and The Podium Mall and the net asset value of the sale shares,” Keppel Philippines Properties said in the filing.
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Interesting Analysis
The deal makes sense for all parties involved. It also likely signals the end of Keppel Corporation’s efforts in the Philippines. Offloading its only commercial real estate asset leaves it with a residential project in the country.
Interestingly, the Philippines isn’t even listed on Keppel Land’s website. The firm remains active in Vietnam and has entered both China and South Korea in recent times.
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