Kepwealth further delays property acquisition plan
Key Takeaways
- •Kepwealth Property Phils. has further postponed its planned property acquisitions, citing a prudent and cautious approach amid current office property market conditions.
- •The company raised up to P384.8 million through its IPO, with part of the proceeds originally earmarked for buying additional properties to lease out.
- •As of Sept. 30, Kepwealth had acquired two contiguous floors and 18 parking spaces at One San Miguel Avenue, and continues to evaluate available properties and office-space demand.
- •The acquisition timetable has shifted repeatedly, from an initial second-quarter 2020 target to a board expectation of the first half of 2025, with no revised deadline now provided.
- •All unused IPO proceeds are meanwhile invested in low-risk instruments that generate the highest possible returns, according to the company.
KEPWEALTH Property Phils., Inc. has further deferred its planned property acquisitions as the listed company continues to assess potential investments amid prevailing conditions in the office property market.
In a stock exchange disclosure on Wednesday, Kepwealth said it was reassessing the timetable for using the remaining proceeds from its initial public offering (IPO) to acquire additional properties for lease.
“After reassessing our plans and timeline with regards to the use of the IPO proceeds for the acquisition of additional units that we can lease out, we believe that the most prudent stance would be to continue to proceed cautiously,” the company said.
Kepwealth raised up to P384.8 million through its IPO, with part of the proceeds earmarked to finance the purchase of additional properties.
As of Sept. 30, the company said it had acquired two contiguous floors and 18 parking spaces at One San Miguel Avenue. It added that it was continuing to evaluate available properties and office-space demand before committing to further acquisitions.
Kepwealth had initially targeted completing the planned acquisitions by the second quarter of 2020. It later deferred the timetable while reassessing its capital investments. The company’s board subsequently expected potential property acquisitions to take place in the first half of 2025, although the plans remained under evaluation.
“As always, we have been continually evaluating the business environment in all key cities for opportunities to invest in properties with the best possible return for the investments of our shareholders,” the company said.
Kepwealth did not provide a revised timetable for completing the planned acquisitions. “In the meantime, all unused IPO proceeds were invested in low-risk instruments that generated the highest possible returns,” it said.
— Ashley Erika O. Jose
