REAL estate player Ayala Land Inc. (ALI) has assigned some of its shares in its joint venture agreement with Aboitizland Inc. to affiliates Cebu Holdings Inc. (CHI) and Cebu Property Ventures Development Corp. (CPVDC).
In a press statement sent yesterday, ALI disclosed its assignment to CHI and CPVDC of the right to subscribe to 10 percent and five percent, of the authorized capital stock of the joint venture company (JVC). ALI will retail its remaining 35 percent stake in the JVC.
Last week, ALI inked a joint venture agreement with Aboitizland Inc. for the development and operation of a 15-hectare city center in Subangdaku, Mandaue City.
The two property giants also teamed up to bid for the P17.5 billion Mactan-Cebu International Airport rehabilitation project.
“We are excited about this new development which is distinct from our other properties in Cebu. This will complement our expanding portfolio of projects, as well as allow us to reach more geographies and markets,” CHI president Francis Monera said.
Monera said the project will contribute to Cebu’s thriving real estate industry and lead to an influx of more investments in the area.
CHI, which is celebrating its 25th year, is the developer of the city’s largest integrated, mixed-use, master-planned development, the Cebu Business Park.
CPVDC, a subsidiary of CHI, on the other hand, is the developer of Cebu I.T. Park which is home to the largest concentration of IT and business process outsourcing companies south of Manila.
Largest
These two business parks form Cebu Park District, the largest operating Peza-registered IT zone in the country. CHI’s other developments include Ayala Center Cebu, seaside residential subdivision Amara and various residential and office condominium towers within the park.
The press statement added the two ISO-certified real estate developers, CHI and CPVDC will “bring better efficiencies and possible synergies that will maximize opportunities in the Cebu property market.”
The planned city center will have residential developments and commercial spaces with retail and office components. The development is slated to be launched in 2015.
Quoting CBRE Philippines founder and chairman Rick Santos, CHI said the Philippine property sector will continue to show resiliency this year, registering growth carried by the momentum of 2013.
CBRE Philippines is a commercial and real estate services firm. It recently reported that more investors now are looking at all property fronts here: office, residential, industrial, retail and leisure.
“The healthy economy, growing consumer spending, and sustained remittances have made the local market to attractive to more international retailers, and, thus, buoyed the retail property sector,” Monera said in earlier interviews.
“As long as the Cebu economy remains favorable, which we expect it to be, then we are confident that the local real estate industry will be bullish in 2014,” he said.