March 03, 2014

COSCO Capital buys shopping mall of MPI unit

In a disclosure, Metro Pacific Investments Corp said it has sold its all its stakes in NE Pacific shopping Centers Corp (NEPSCC) to Cosco Capital Inc. The shares represent 36.9% of NEPSCC. This is part of moves by MPI to dispose of its non-core assets. NEPSCC owns a shopping mall and related assets in Cabanatuan City.

Our Take: This acquisition is significant for COSCO as it may signal the company’s potential interest to go into shopping mall operations which is a logical fit for its retail business. Given the inherently high operating margins of malls (+ 50% EBITDA margins for the bigger mall operators), investments in this area can provide a boost to COSCO’s overall margins. – WealthSec