Just being cautious: Kepwealth defers land acquisitions anew
Just being cautious: Kepwealth defers land acquisitions anew
KepwealthLeasing and management company Kepwealth Properties Philippines Inc. (KPPI) has again pushed back its planned acquisition of new properties.
KPPI said it has postponed buying new properties until the second half of the year or the first semester of 2023 amid tough business conditions.
The niche real estate developer maintains its view that the most prudent stance would be to continue to proceed cautiously as the company evaluates the available properties and weigh that against the demand for office spaces.
KPPI had originally projected to complete the acquisition of office spaces in Metro Manila and Davao by the second quarter of 2020, which was later on moved towards the first or second quarter of 2021.
“As has been our stance since the beginning of the pandemic, we still believe that our shareholders’ interest would be best served by being conservative in our capital investments,” KPPI said.
In the meantime, KPPI said all unused proceeds from its initial public offering in 2019 were channeled to low risk investment instruments with the highest returns as possible.
KPPI said it continues to work to explore potential tie-ups with other property owners after its clients pre-terminated the asset management agreement they had with the company due to the pandemic and financial difficulty of all the properties it managed.
“We still see the possibility that when the country eventually bounces back economically, our company will again be able to get these clients to again contract us to manage their properties,” it said.
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