Consortium led by Franklin Templeton invests in Philippine affordable housing sector

PHILIPPINES URBAN LIVING SOLUTIONS, INC. (“PULS”), a leading developer, owner, and manager of affordable housing solutions in the Philippines under the “MyTown” brand, announced today the placement of convertible notes to a consortium including Franklin Templeton’s Strategic Emerging Market Fund IV LDC as Lead-investor and BPI Capital Corporation (“BPI Capital”) as a Co-investor.


Proceeds from the convertible notes will be used to partially finance the construction of approximately 3,000 apartment units as well as expand the PULS land bank. The parties have agreed not to disclose the financial terms of the transaction.


BPI Capital acted as Financial Advisor to PULS.


“Millions of young professionals in Metro Manila suffer from the chronic lack of quality yet affordable rental accommodation near their place of work. They typically commute for over two hours daily in unreliable public transport or live in subpar housing simply because no large scale developments currently exist to provide quality affordable rental housing to this demographic. PULS intends to improve the lives of these people by allowing young professionals to live in quality rental accommodation, at walking distance from their work,” said Mark Arellano- Kooijman, Co-Founder and CEO of PULS.


“We aim to build a sizeable portfolio of housing for young professionals on the back of this investment, as we believe there is a pressing need for a new lifestyle concept designed especially for the modern young professional. Moreover, the fierce employee talent war in the Philippines makes attracting and retaining staff a top priority, and providing staff housing is quickly becoming a topic among corporate employers” said Jogee Arellano, Head of Marketing for PULS.


Mark Mobius, Executive Chairman of Templeton Emerging Markets Group, commented: “Metro Manila has a large and growing affordable housing gap. Our investment in PULS along with BPI Capital will help increase the availability of affordable rental housing for a population that is currently under serviced and under targeted.”


“This transaction is Franklin Templeton’s first private equity investment in the Philippines and we are delighted to partner with such a talented team and help PULS become the staff housing partner of choice for corporate employers in the Philippines,” commented Richard Piliero, Head of Private Equity, Southeast Asia at Templeton Asset Management, Ltd.


“PULS provides a creative and scalable solution to dealing with the intensive traffic and lack of affordable housing problem for young professionals. BPI Cap supports bold ideas to solving everyday problems.” commented Reginaldo Cariaso, Managing Director at BPI Capital.


About PULS
PULS, established in 2012, is a leading owner, developer and manager of purpose-built staff housing. PULS specializes in the development of rental housing communities under the “MyTown” brand at walking distance from the central business districts in Metro Manila. The company develops communities in which young professionals can live, play and walk to work, hence increasing the quality of life by saving on both transportation time and cost for this important and rapidly growing demographic group. It is PULS’s long term goal to create commercially attractive business strategies and attract private capital to solve economic issues and improve living conditions in the Philippines.
About Franklin Templeton Investments
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management to retail, institutional and sovereign wealth clients in over 150 countries. Through specialized teams, the company has expertise across all asset classes -- including equity, fixed income, alternative and custom solutions. The company's more than 600 investment professionals are supported by its integrated, worldwide team of risk management professionals and global trading desk network. With offices in 35 countries, the California-based company has more than 65 years of investment experience and over $801 billion in assets under management as of October 31, 2015. For more information, please visit franklintempleton.com.


About BPI Capital 
BPI Capital is the most trusted transaction advisor, credit sponsor, and financing originator to the most respected businesses and corporations in the country. With a renewed optimism for the Philippines as an investment destination, BPI Capital is the leading partner in accessing opportunities in the Philippines for the development of an Asian private equity portfolio.

For further information, please contact:


Philippines Urban Living Solutions, Inc.
Max Alberto
Email: max.alberto@puls.ph
Telephone: (+63) 2 738 8640

 

Franklin Templeton’s Strategic Emerging Market Fund
Melissa Tan
 Email: melissa.tan@franklintempleton.com
Telephone:  +65 6432 9415


BPI Capital Corporation
George S. Uy-Tioco, Jr.
Email: gsuytioco@bpi.com.ph
Telephone:  +63 (2) 845 5913

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