Major property developer Ayala Land Inc. will acquire the 20-percent stake of Mitsubishi Corp. in Laguna Technopark Inc. for P800 million.
Ayala Land said in a disclosure to the stock exchange its executive committee approved the deal.
Ayala Land said it would later swap the 20 percent equity interest in LTI for additional shares of stock in Prime Orion Philippines Inc., equivalent to 323,886,640 common shares, subject to conditions to be fulfilled by unit Popi.
“This transaction will strengthen Popi’s vision to be the leading real estate logistics and industrial estate developer and operator in the Philippines,” Ayala Land said.
Ayala Land owns 64 percent of Popi.
LTI is a prime developer of industrial parks in the Philippines. It owns and manages the 460-hectare Laguna Technopark, which spans portions of the cities of Santa Rosa and Biñan in the province and the 118-hectare Cavite Technopark in the municipality of Naic.
LTI’s industrial parks have served as preferred locations of local and foreign manufacturing, processing logistics and distribution companies in the Philippines.
Popi in November earmarked P1 billion to build and develop a logistics and warehouse facility in Laguna Technopark.
The project will generate over 60,000 square meters of gross leasable area, bringing the group’s real estate logistics total gross leasable area to 200,000 sqm.
Slated for completion by October 2020, the facility can accommodate small and medium businesses, as well as clients with growing warehousing and storage needs.
It will also serve non-PEZA (Philippine Economic Zone Authority) locators.
Popi earlier reported plans to launch a 100-hectare industrial park in Cagayan de Oro and acquire at least another 100-hectare property in Central Luzon to be developed into another industrial park.
Ayala Land first acquired a significant stake in Popi in 2016.