PCC greenlights sale of PLDT buildings

The country’s antitrust agency has approved a real estate firm’s buyout of infrastructure assets owned by PLDT Inc. in Makati and Bonifacio Global City (BGC).

In a decision, the Philippine Competition Commission (PCC) authorized DMC Urban Property Developers Inc. (DMC-UPDI) to acquire PLDT buildings. The PCC said it found no reason to prohibit the acquisition, as it will not result in a substantial lessening of competition in the office leasing space market in Makati and BGC.

Under the transaction, DMC-UPDI is purchasing two parcels of land with an aggregate area of 2,400 square meters with improvements comprising of two buildings from PLDT.

The two buildings, Smart Towers I and II, are located along Ayala Avenue in Makati City. The PCC said there remains to be sufficient competitive constraints posed by large competitors in the office leasing space market in spite of the acquisition.

Further, the buyout of the two buildings is secondary only to PLDT’s main business, which is on telecommunications, and as such there will be no changes in either the ownership or control of either party.

The acquiring entity DMC-UPDI is a domestic real estate company involved in the leasing and development of properties. It leases office spaces in Makati and BGC, lands in Davao and Antique, and land and improvement in Makati, Taguig and Manila.

DMC-UPDI is also engaged in putting up subdivision housing and condominium projects in Davao and Bataan.

PLDT is a telecommunications company providing fixed-line, wireless and other information technology and communication services. PLDT also owns commercial properties primarily for its own use and use of its subsidiaries, while properties not for its own use are leased to third parties.

The Smart Towers in Makati currently houses PLDT’s fully-owned subsidiary Smart Communications Inc. and leases a portion of the property to retailers.

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Article originally posted by Manila Mirror last September 7, 2020 and written by Elijah Felice Rosales.