PROPERTY developer Kepwealth Property Phils. Inc. has moved its continuing acquisition of leasable office spaces to the first or second quarter of 2021 due to the business challenges posed by the coronavirus disease 2019 (COVID-19) pandemic.
In a disclosure to the stock exchange on Tuesday, the company said that it decided to “proceed cautiously” while evaluating available properties and checking the market demand for office spaces.
The move comes after a review of the company’s plans on how to use the proceeds from its initial public offering (IPO).
“Originally, the company had projected to complete the acquisition until the end of the second quarter of 2020. We now believe that our shareholders’ interest would be best served to move the acquisition to the first or second quarter of 2021,” the disclosure said.
Last year, the company was able to raise P384.77 million when it listed its shares on the stock exchange.
Proceeds from the IPO will be allocated to the purchase of new spaces for commercial and office leasing.
Further, the company said the earlier acquisition of its two contiguous floors and 18 parking spaces in One San Miguel Ave. had only been turned over after the enhanced community quarantine.
In March, the company forged deeds of absolute sale with Amberland Corp. for spaces in the said building in Pasig City.
Meanwhile, Kepwealth also disclosed that a couple of properties that it is managing had expressed their desire to pre-terminate the “asset management agreement” with the company.
The company’s disclosure did not state the names of the properties.
“Nonetheless, as we see when the country eventually bounces back economically, the company continues to work to explore potential tie-ups with property owners,” Kepwealth President Augusto Pablo A. Corpus Jr. was quoted as saying.
On Tuesday, shares of Kepwealth in the stock exchange rose 0.21% or P0.01 to close at P4.85 per share. – Revin Mikhael D. Ochave