Ayala Land to take full control of Gatewalk Central project

Ayala Land to take full control
of Gatewalk Central project
ARTIST’S PERSPECTIVE. Ayala Land says it envisions Gatewalk Central to be one of its key Cebu estates that will contribute to its growing presence in the Visayas region. / GATEWALK CENTRAL FACEBOOK

AYALA Land Inc. (ALI) is buying out its partner Aboitiz Land and Aboitiz Equity Venture (AEV) to take full ownership of Cebu District Property Enterprise Inc., (CPDEI) the developer of Gatewalk Central in Mandaue City.

In a disclosure to the Philippine Stock Exchange on Tuesday, June 18, 2024, ALI said it is buying Aboitiz Land and Aboitiz Equity Ventures’ stake in CPDEI for P100 per share, amounting to a total of P1.81 billion.

CDPEI, is the joint venture company of ALI, Aboitiz Land and AEV. It was incorporated in 2014 to engage in the business of real estate development. It is the developer of Gatewalk Central, a 17.5-hectare mixed-use estate in Mandaue City, Cebu.

ALI said the acquisition will consolidate its ownership of CDPEI. ALI said it envisions Gatewalk Central to be one of its key Cebu estates that will contribute to its growing presence in the Visayas region.

This proposed buyout is subject to standard conditions, including regulatory approvals from the Securities and Exchange Commission for CDPEI’s capital stock increase and from the Philippine Competition Commission.

This is the second big announcement of ALI for Cebu this year. In February, the company announced it is renovating Ayala Center Cebu “into remarkable spaces where customers can discover and enjoy unique and best-in-class experiences for retail, dining, entertainment and leisure.”

“Ayala Center Cebu will transform into the Queen City of the South’s premier lifestyle destination for milestones and unparalleled retail in the region,” said Mariana Zabel de Ayala, senior vice president of ALI.

Groundbreaking

In 2016, property giants ALI and Aboitiz Land broke ground on Gatewalk Central, a mixed-use project featuring an Ayala mall, residential towers, and office spaces.

The companies earmarked P10 billion for the initial development of the joint venture project in Barangay Subangdaku, Mandaue City.

Gatewalk Central will be ALI’s fourth major mixed-use district in Metro Cebu, following the Cebu Business Park, Cebu IT Park and Seagrove Mactan.

According to the report, Landmark will open its first department store outside Metro Manila as a tenant in the mall. The mall will also feature a diverse mix of popular global and local brands, family dining options, and entertainment venues.

Additionally, a business process management building with approximately 20,000 square meters of gross leasable area will be constructed above the mall. For the residential component, Ayala’s Avida will initially build three towers with a total of 1,800 units.

Healthy first quarter

ALI delivered significant earnings growth in the first quarter of the year, supported by healthy property demand and consumer activity. ALI’s net income grew 39 percent to P6.3 billion, while consolidated revenues increased by 33 percent to P41 billion from the first quarter of 2023.

Property development revenues increased by 47 percent to P25 billion, driven by robust residential and commercial lot bookings. Residential revenues surged by 51 percent to P21.4 billion, and revenues from commercial and industrial lots jumped 59 percent to P2.8 billion.

Meanwhile, office-for-sale revenues registered 26 percent lower to P826 million as the lower incremental percentage of completion of the projects offset the sales bookings during the quarter.

“Our first quarter performance reflects our commitment to delivering on our operational targets this year, focused on high-value market opportunities and our drive for quality,” said ALI president and chief executive officer Anna Ma. Margarita Bautista-Dy. “Anchored on the resiliency of the local property market and consumer activity, we look forward to executing our plans to support our growth aspiration for 2024,” she added.

Last March 5, Ayala Land declared dividends of P0.2050 per share to stockholders, equivalent to P3.1 billion. / KOC

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