First Metro Investments Corp., the investment banking unit of Metropolitan Bank & Trust Co. of tycoon George Ty, is selling its entire 10.47 percent interest Cebu-based property developer Cebu Holdings Inc.
First Metro said in a regulatory filing the board approved the sale of its stake in Cebu Holdings, an affiliate of Ayala Land Inc.
The disclosure did not provide other details, including the timetable of the sale and potential buyers of the same shares.
The sale of the 10.47-percent stake in Cebu-based property developer could reach over P1 billion based on Cebu Holdings’ closing price of P5.16 Monday.
First Metro is the second biggest shareholder of Cebu Holdings after Ayala Land, which owns over 50 percent.
Cebu Holdings in 2015 posted a record net income of P827.2 million, up 56 percent from P530.9 million a year ago, on higher revenues from the sale of commercial lots and leasing income.
Consolidated revenues hit a record P3.7 billion, fueled by an increase in rental income as well as real estate sales.
“The company’s consolidated revenues were derived from sale of commercial lots, lease income from Ayala Center Cebu and eBloc Towers and sale of residential lots and condominium units. The company also derived income from interest earnings from short-term investments, interest & other income and equity in net earnings of affiliates,” Cebu Holdings said.
Cebu Holdings was formed in 1988 as a company engaged in real property ownership, development, marketing and management.
It owns and manages the Cebu Business Park, a 50-hectare business and commercial subdivision in Cebu City. CHI so far has developed two office condominiums in Cebu—Cebu Holdings Center and Ayala Life-FGU Center Cebu, and two residential condominiums—Park Towers I and II.
CHI in 2015 launched its seaside residential development community, Amara, in partnership with Cebu Coastal Highpoint Ventures Inc.