In 2024, the Yuchengco-led House of Investments, or HI, will take a bold step in shifting its focus on financial services as a core investment replacing construction.
In a report to the stock exchange on Monday, HI disclosed that the initial part of the diversification includes a P15.7 billion share swap agreement and the acquisition of a 184-hectare property in Tarlac through a newly incorporated and wholly-owned subsidiary, Tarlac Terra Ventures Inc.
HI's decision to cut its exposure in the construction industry with EEl is aimed at optimizing its organizational structure and bolstering its portfolio.
Putting in the groundwork
"Aiming to be an extensive conglomerate, we are putting in the groundwork necessary to make HI a bigger and better company," HI director, president and chief executive officer Lorenzo Tan said.
"This initiative is centered on the reorganization of the group to amplify its overall value proposition, demonstrating HI's continuous business development and its pursuit of growth opportunities across multiple sectors," he added.
Pending the release of the SEC approval for an increase in its authorized capital, HI will hold 77.32 percent of MICO Equities Inc. which owns Malayan Insurance Co. (Non-life Insurance) Inc.; 51 percent of Sun Life Grepa Financial Inc. (Life Insurance); and 49 percent of Grepa Realty Holdings Inc., or GRHI.
New financial services unit
The reorganization will create a new financial services unit under HI, which will include Malayan Insurance, Sun Life Grepa Financial, and HI's existing 40 percent stake in RCBC Trust Corporation.
Apart from this, HI is also expanding its property portfolio by acquiring an 184-hectare property located at Central Techno Park in Luisita Industrial Park.
Additionally, HI will acquire complete ownership of GRHI and its multiple properties by 2024, which will further expand its property portfolio.
Full ownership
In 2022, HI acquired full ownership of A.T. Yuchengco Centre located in BGC, Taguig.
Furthermore, HI is developing a 28-story office building along Sen. Gil Puyat Avenue through its 60 percent stake in San Lorenzo Ruiz Investment Holdings and Services.
HI is a member of the GMR Consortium, along with India-based Gmr Airports International B.V. and Cavitex Holdings Inc., a unit of Metro Pacific Investments Corp., vying for the P170.6-billion Ninoy Aquino International Airport, or NAIA, rehabilitation.