PNB Holdings eyes eventual follow-on offering
PNB Holdings Corp., the real estate arm of billionaire Lucio Tan’s Philippine National Bank (PNB), is eyeing a follow-on offering to help fund its major redevelopment projects.
Ponciano Carreon Jr., the firm’s chief financial officer, said the group continues to explore ways to further pump up the redevelopment plans for its key assets. Carreon said these may include a follow-on offer within the next three to four years.
Last week, PNB Holdings officially applied to list its shares on the Philippine Stock Exchange. This will be done by way of introduction, which allows a company’s existing shares to be listed on the exchange without raising fresh capital. No public offering of shares is involved.
At present, the company is focused on its three “prime” properties: PNB Financial Center in Pasay City, PNB Makati Center and a high-value commercial lot at the intersection of Buendia Avenue and Paseo de Roxas.
Carreon said the underdeveloped premium lot is the group’s “readiest asset for redevelopment.”
“Exciting times lie ahead as we maximize the new FAR (floor area ratio) product mix, which now allows the site to unlock its full value,” he told Inquirer.
The official also said PNB Holdings would continue upgrading PNB Makati Center and PNB Financial Center, as they remain the firm’s growth engines.
Carreon is confident that the two assets would provide a continued boost to the group. The vacancy rate at PNB Makati Center’s office and retail segments are at single-digit levels. By 2026, he expects the property to reach near full occupancy.
PNB Financial Center, the firm’s largest asset in terms of total leasable area, continues to outperform other players in the Bay Area market.
The executive also ruled out a possible entry into the residential market as “our focus is on capturing the significant and undertapped opportunity in the Philippine ultra luxury real estate segment.”
The three assets, he said, give “more than sufficient growth pipeline for the next 15 years.”
“We are confident in the success of this portfolio, and its performance will enable us to eventually expand our geographic footprint into similarly prime and strategically located sites,” Carreon added.
