Hong Kong investors buy into Philippine property firm

Pay US$1.05 billion for 450 million shares in MJC Investments Corporation or MJIC.

The Philippine company is the property development arm of the Manila Jockey Club Inc., one of the Philippines’ leading horseracing clubs. The Hong Kong investors are led by Cheah Teik Seng, a Malaysian investment banker who sits on the board of Maybank and private equity firms in Hong Kong, China and Malaysia.

MJIC intends to use the proceeds of the US$714 million subscription to fund the development of its San Lazaro Tourism and Business Park in Manila, site of its former racetrack.

MJIC’s plans include the construction of a hotel, entertainment and tourism podium. The entertainment project, which could be built by 2015, will be an 18-floor tower and podium consisting of 160 rooms and 900 parking slots.

MJIC is also in preliminary talks to acquire property on the world famous resort island of Boracay and Occidental Mindoro that it will convert into leisure developments.