Italpinas vacates energy space
Italpinas Development Corp. (IDC) has divested its minority stake in an energy company for P6.5 million to focus on its core business as demand for real estate outside Metro Manila grows.
IDC disclosed to the stock exchange on Friday that Constellation Energy Corp. (CEC) had agreed to buy back the boutique developer’s entire 25-percent stake.
“The sale of our minority stake in Constellation Energy allows IDC to fully focus on our core real estate business,” IDC said. “It streamlines and simplifies financial reporting, and eliminates exposure to non-core performance.”
Based on IDC’s 2023 annual report, CEC, IDC’s only business outside real estate, is a renewable energy development firm.
This firm’s projects span hydroelectric, geothermal and wind technologies in the provinces of Oriental Mindoro and Negros Oriental.
IDC chair and CEO Romolo Nati also sits as the president of CEC. The company has yet to disclose who will replace Nati at the energy company after IDC completes its divestment.
In 2023, CEC trimmed its losses by 37 percent to P2.85 million after cutting expenses.
IDC’s divestment also comes as it continues increasing investments in its real estate projects due to strong demand in the provinces.
Data from real estate broker Colliers Philippines show that in the fourth quarter of 2024, residential vacancy in the capital region reached an all-time high of 23.9 percent.
Meanwhile, projects in other regions “performed well, while some mid-income vertical projects outside Metro Manila are nearly sold out,” Colliers said.
