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Thursday, March 28, 2024

Metro Pacific stops investment on Laguna warehouse projects

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Metro Pacific Investments Corp. said Wednesday it will discontinue its planned investments in capital-intensive and large-scale warehousing projects in Sta. Rosa, Laguna as it recalibrates capital allocation plans.

“Considering the changing landscape in the logistics space driven by the pace of digitalization in e-commerce and rapidly evolving end-to-end consumer behavior, Metropac Movers Inc. is currently reassessing its priorities to direct its focus on areas where it can best serve the needs and demands of the market,” Metro Pacific said in a statement.

“As such, it has decided to discontinue investments in capital intensive, large-scale warehousing including the previously announced Sta. Rosa logistics hub. This decision is also in line with the ongoing recalibration of capital allocation plans at the MPIC parent level,” it said.

Located along the Sta. Rosa-Tagaytay Road, about kilometers from South Luzon Expressway, the planned hub was supposed to offer 41,000 pallets of ambient warehousing and 17,500 pallets of cold storage warehousing.

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MMI also planned to build a mega distribution center in Bulacan and Cavite.

Meanwhile, Metro Pacific reported a net income of P7 billion in the first quarter, up 272 percent from the same period last year, boosted by the gains from the sale of Global Business Power Corp. and Don Muang Tollways.

Minus one-time gains from sale of assets, consolidated core net income declined 26 percent in the first quarter to P2.5 billion, driven largely by economic contraction amid the COVID-19 pandemic which resulted in reduced toll road traffic, light rail services and commercial and industrial demand for water and power.

“Navigating through a pandemic would have been even more challenging had it not been for the relative strength of our balance sheet. Consequently, while we remain committed to our ongoing priority projects, we have also recalibrated our capital expenditure plans for the year and have decided to defer or discontinue previously announced discretionary investments,” said Metro Pacific president and chief executive Jose Ma. Lim.

“This will allow us to focus more on investments that will enable economic growth from infrastructure development without putting additional strain on future our cash flows,” Lim said. 

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