A MAJORITY-OWNED subsidiary of listed construction firm Italpinas Development Corp. (IDC) has signed a joint venture agreement for a P1.2-billion property development in Cagayan de Oro City to grow its project portfolio.
In a stock exchange disclosure on Thursday, IDC said its majority-owned subsidiary IDC Prime, Inc. had agreed with a certain Gilda Go on Aug. 23 for the development of her 6,790-square-meter property along Rosario Limketkai Ave. in Brgy. Lapasan into a mixed-use project.
IDC Prime’s board approved the execution of the joint venture with Ms. Go on Aug. 2.
“Ms. Go is contributing a prime property, consisting of 6,790 square meters,” IDC said, adding that its unit will develop the property into a mixed-use development.
“IDC will provide management and technical oversight. Total project cost is estimated to be P1.2 billion,” it added.
“IDC intends to grow its project portfolio by farming out the development to its subsidiaries, leaving IDC free to explore new locations, negotiate additional joint ventures, and tap diverse funding sources,” the company added.
“The agreement was negotiated by IDC, but the development of the project was assigned to IDC Prime in order to disperse operations, and leave IDC free to make the strategic decisions, and pursue more projects,” it added.
According to IDC, Ms. Go will be entitled to 20% of the number of sellable units with a value not less than P100 million at the pre-selling price, while IDC Prime will be entitled to the remaining 80% of the sellable units.
IDC said IDC Prime, Inc. had estimated a gross profit margin of 59.40%.
On Thursday, shares of IDC rose one centavo or 1.28% to end at 79 centavos each. — Revin Mikhael D. Ochave
