KEPWEALTH Property Phils., Inc. has further delayed its planned property acquisition as the listed company continues to assess potential investments amid conditions in the office property market.
In a stock exchange disclosure on Wednesday, Kepwealth said it was reassessing its timetable for using the remaining proceeds from its initial public offering (IPO) to acquire additional properties for lease.
“After reassessing our plans and timeline with regards to the use of the IPO proceeds for the acquisition of additional units that we can lease out, we believe that the most prudent stance would be to continue to proceed cautiously,” the company said.
Kepwealth raised up to P384.8 million from its IPO, with part of the proceeds intended to finance the acquisition of additional properties.
As of Sept. 30, the company said it had acquired two contiguous floors and 18 parking spaces at One San Miguel Avenue.
Kepwealth said it continued to evaluate available properties alongside demand for office space before committing to further acquisitions.
The company had initially targeted the completion of its planned acquisitions by the second quarter of 2020 but subsequently deferred the timetable as it reassessed its capital investments.
Its board later expected potential property acquisitions to take place in the first half of 2025, although the plans remained under evaluation.
“As always, we have been continually evaluating the business environment in all key cities for opportunities to invest in properties with the best possible return for the investments of our shareholders,” the company said.
Kepwealth did not provide a revised timetable for completing the planned acquisitions.
“In the meantime, all unused IPO proceeds were invested in low-risk instruments that generated the highest possible returns,” it said. — Ashley Erika O. Jose