Ayala Land Inc. (ALI) is selling its 50-percent stake in Alabang Commercial Center Corp. to its joint-venture partner, the Madrigal group, for P13.5 billion to raise capital for future growth, the property developer said Tuesday.
The sale allows ALI to monetize a mature asset and redeploy the proceeds to accelerate the development of its next generation of large-scale, high-growth leasing projects, the company said.
It said the transaction aligns with ALI’s strategy of developing assets, stabilizing operations and then selling them at what it views as optimal valuations to fund its expansion and enhance shareholder returns.
“Our strategy is focused on a dynamic cycle of value creation. We build, we stabilize, and we unlock value at the right time to fuel our next wave of innovation,” ALI president and chief executive Margarita Dy said in a statement.
She said the deal is “a prime example of that strategy in action,” monetizing a legacy asset at peak valuation to accelerate the rollout of the company’s “expansive pipeline of commercial and retail spaces.”
The proceeds from the sale will be a key source of funding for ALI’s leasing pipeline, which includes nearly 700,000 square meters of new gross leasable area planned over the next five years across key growth centers in the Philippines.
ALI reaffirmed its commitment to Southern Metro Manila, citing master-planned estates such as Arca South, Vermosa and Evo City. It also noted that it continues to develop projects in Alabang, including the 6.6-hectare Cerca Estate.
The deal remains subject to customary closing conditions.
 to fund the acceleration of its commercial and retail leasing pipeline in the Philippines.){kind=link}