LISTED AbaCore Capital Holdings Inc. said on Thursday that it had successfully raised some P227.5 million from the sale of the Batangas property of a wholly-owned subsidiary, Omnilines Logistics International Network Inc.
The holding company said the 30,117-square-meter (sq m) land in Mabini, Batangas, was valued at P10,200 per sq m for a total price of P307.19 million.
The cost of sale, meanwhile, was estimated at P61.3 million.
AbaCore Vice Chairman Antonio Victoriano Gregorio 3rd, in a statement, said the divestment demonstrated "continuing effective management of our portfolio, allowing the company to strengthen its bottomline and provide value to our shareholders."
"The transaction is part of our overall strategy to work with businesses that want to expand their presence in Batangas or enter the market for the first time," he added.
"[AbaCore] will continue to work with other entities to maximize the potential of our portfolio, and we aim to further add more property investments that would provide the necessary investment returns and generate additional income."
The company's board, in a meeting on Wednesday, approved the property sale and authorized Chief Operating Officer Arturo Magtibay to negotiate, sign and execute the deal.
The board also greenlit an increase in the commission rate from 2.0 percent to 5.0 percent "in favor of the agents of the transaction."
Omnilines had signed a contract with cement manufacturer Premiere-Slag International Inc. in 2019 for the sale of the Batangas property for P225.88 million.
The contract was canceled after both parties mutually agreed not to proceed, AbaCore told The Manila Times in a text message.
In the statement, the holding company said it generated "hundreds of millions" last year from the sale of several Batangas-based parcels of land in Pagkilatan, Calingatan, Mataas na Kahoy, San Salvador, Lipa and Inosluban.
"The company also took steps to replenish its portfolio in 2023, such as by making strategic investments in properties located in Cavite and Batangas," it noted.
The move was said to be aligned with plans to continue taking advantage of "deals that may take place in the future — which would allow both AbaCore and its partner to mutually benefit from the potential the properties would bring to them."AbaCore's share price was unchanged at P1.07 on Thursday.