Niche real estate developer Kepwealth Properties Philippines Inc. is halting land purchases as it seeks to protect its business from the fallout of Covid-19.
“After reassessing our plans and timeline with regards to the acquisition related to the use of the IPO (initial public offering) proceeds, we believe that the most prudent stance would be to proceed cautiously as we evaluate the available properties and weigh that against the demand for office spaces,” KPPI said in a regulatory filing.
KPPI was originally looking to complete the acquisition in the second quarter of 2020.
“We now believe that our shareholders interest would be best served to move the acquisition to the first or second quarter of 2021,” KPPI said.
KPPI stll has P186.91 million left out of the P241.96 million IPO proceeds earmarked for land acquisitions.
The company likewise reported that some entities have decided to terminate the asset management agreement they had with KPPI due to the pandemic.