PCC clears Arthaland acquisitions in Cebu

The Philippine Competition Commission (PCC) has approved Arthaland Corp.’s acquisition of properties in Cebu through its subsidiary.

“Following its review, the PCC found no indication of competition concerns and noted the presence of other major and local developers in Cebu City, which serve as sufficient competitive constraints to the parties involved,” the antitrust body said in a statement on Friday.

The deal involves Arthaland unit Furusato Land Corp. and subsidiaries of YYJR-RU Real Estate and Properties Corp. purchasing a 50-percent interest in 14 parcels of land along Banilad Road in Cebu City for P2.5 billion.

“The PCC’s clearance supports continued competition in the real estate sector, affirming the presence of sufficient competitive constraints in the market,” it added.

Also, the PCC said the approval enables strategic growth for involved parties, in line with its mandate to promote fair and efficient market outcomes.

Early this month, Arthaland informed the local bourse of plans to acquire parcels of land in Cebu City, subject to the ratification of its board during an upcoming meeting.

Arthaland, engaged in real estate development and leasing, announced the establishment of Furusato Land in May as the project vehicle for the planned transaction.

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The company, however, did not provide additional information regarding the deal.

Arthaland is the only real estate developer in the Philippines with a residential and commercial portfolio that is 100-percent certified as sustainable by local and global organizations.

In the six months ending June, Arthaland reported a net income of P210.1 million, down 23.1 percent.