Thailand’s Dusit International has signed a 1.6 billion peso (US$32 million) investment agreement with Philippine-listed infrastructure holding company Metro Pacific Investments Corporation (MPIC) to jointly develop and manage hospitality and residential properties in the Philippines.
Expected to be completed in June 2020, this joint investment is subject to approval from the Philippines Competition Commission.
As per the investment agreement, the structure of which is expected to be in place by December 2020, Metro Vantage Properties, the real estate, hospitality, and tourism subsidiary of MPIC; and Dusit Philippines Corporation, a wholly-owned subsidiary of Dusit International, will jointly invest in two companies in the Philippines, namely, Metro Dusit (MDI) and Dusit Hospitality Management Corporation (DHM).
MDI will operate as a developer of real estate projects in the Philippines, particularly hotel and residential condominium projects, while DHM will provide management services in relation to these projects, as well as other projects developed in partnership with third-party business operators.
DHM will also manage all of Dusit’s existing properties in the Philippines.
The investment partnership is in line with Dusit’s three-pronged strategy for sustainable and profitable growth, which includes balance, expansion and diversification.
As part of the strategy, Dusit aims to expand its presence in established and emerging markets to achieve a 50-50 balance between domestic and international revenue by 2025.
“While we recognise the outbreak is currently impacting trade and business throughout Asia, our partnership with MPIC is a long-term investment scheduled to be in place at the end of the year, when we believe business as usual will be resumed,” said Suphajee Suthumpun, group CEO, Dusit International.
Dusit International’s property portfolio now comprises 307 properties operating under six brands across 14 countries.