LISTED property developer Kepwealth Property Phils., Inc. is looking to acquire new properties in the near term as the company is aiming to bolster its portfolio.
Kepwealth stated in a regulatory filing on Tuesday that they anticipate considering the acquisition of new properties in either the second half of 2023 or the first quarter of 2024.
The company has announced its acquisition of two adjacent floors and 18 parking spots at One San Miguel Ave. in Pasig City, as part of its strategy to obtain additional rentable office areas.
A portion of the acquisition was financed by the proceeds gained from the company’s IPO in 2019, during which it sold 67.03 million common shares and generated P384.8 million in total revenue.
Kepwealth provided an update to the Philippine Stock Exchange regarding the utilization of funds from their IPO as of the end of September.
Kepwealth stated that any [IPO] funds that were not utilized were put into low-risk investments with the goal of maximizing returns.
The organization had previously announced that the funds would be utilized to purchase approximately 3,500 square meters of rentable office area. A total of P245 million will be allocated for office spaces in Quezon City, Pasig City, and Makati City, with the remainder going towards office spaces in Davao.
Based on Kepwealth’s statement, they are still prioritizing their efforts in business development, despite being limited by the current market conditions.
The company stated that they have reevaluated their plans and timeline for using the IPO funds to acquire more units for leasing. They have decided to proceed with caution as they consider available properties and the demand for office spaces.
The company’s initial plan was to finalize the acquisition by the end of the second quarter of 2020. However, due to the ongoing pandemic, our priority remains focused on protecting our shareholders’ interests by being cautious with our financial investments.
Kepwealth’s stocks on the local stock market increased by five centavos or 3.03%, reaching P1.70 each.