Rockwell, TGN Realty Ink Deal To Develop Land In Pampanga
Lopez-led Rockwell Land Corp. on Wednesday said it signed a joint venture agreement with the Nepomuceno Group’s TGN Realty to develop a 3.6-hectare mixed-use property in Angeles City, Pampanga.
The said deal was forged after the two firms were able to secure the green light from the Philippine Competition Commission (PCC) on October 20.
In a statement late Tuesday, the PCC said it authorized the joint venture of Rockwell Land Corp., TGN Realty Corp., Nepwell Property Management Inc. and siblings Hilda Aurora N. Valdes, Patrick Adrian N. Valdes and Theresa Gracia N. Valdes.
According to the PCC, the transaction will not result in the substantial lessening of competition in real estate market in Pampanga or nationwide. As to why, it explained the joint venture was formed for the sole purpose of developing the land in the province.
“We are excited to build a new Rockwell community in Pampanga through our joint venture with the family behind the successful Nepo Center,” Rockwell Land President Nestor Padilla said.
Rockwell said its project will have 3 residential towers complemented by a retail component which is poised to be the Power Plant Mall in Angeles, the first Rockwell mall outside Metro Manila.
It will be similarly designed to the Rockwell Center in Makati, such as the the residential towers and the mall will be connected via an underground passageway for the community’s convenience.
The new Rockwell residential community is targeted to launch in the second half of next year. It will feature a central clubhouse.
Each tower will be 10 to 15 storeys with units ranging from one-bedroom to three-bedrooms sized between 44 square meters and 142 square meters.
The residential towers are expected to bring revenue of P6.7 billion, Rockwell said.
The Nepomuceno Group is into education, utility services and real estate. Their 15-hectare flagship project, the Nepo Center in Angeles City’s central business district, features retail establishments Nepo Mall, Nepo Mart and NewPoint Mall as well as PEZA registered office towers eNtec1 and eNtec2.
Future development in the area can boast of improved accessibility with the completion of infrastructure including the expansion of the Clark International Airport and the North-South Commuter Railway that will connect Manila to Clark.
Rockwell said its consolidated net income in the January-to-June period fell 44 percent to P702 million from last year’s P1.26 billion.
Revenues for the period were down 40 percent to P4.14 billion from last year’s P6.93 billion, due to the quarantine restrictions imposed in Metro Manila and key cities in the Philippines where the company operates.
Residential development accounted for 80 percent of total revenues in 2020, slightly lower than last year’s 81 percent.
The company said the first half of 2019 figures were restated to reflect the impact of PFRS 15 mainly on cost of sales and interest expense and PFRS 16 on rent expense, depreciation and interest expense in order for the 2020 figures to be comparable.
For the second quarter alone, Rockwell registered a P32-million loss as against the previous year’s P538-million income.
Revenues for the period, meanwhile, reached P924 million, down by 73 percent from last year’s P3.44 billion, but mostly as a result of its interest income as other revenue streams were depressed.