Property developer Ayala Land Inc. (ALI) is buying the Aboitiz Group out of a joint venture company that is developing a township in Cebu City.
ALI said in a disclosure to the stock exchange Tuesday it signed a share purchase agreement to acquire Aboitiz Equity Ventures Inc.’s 50-percent interest in Cebu District Property Enterprise Inc. (CDPEI) for P1.8 billion.
“This acquisition will consolidate ALI’s ownership of CDPEI, the developer of Gatewalk Central. ALI envisions Gatewalk Central to be one of its key Cebu estates that will contribute to ALI’s growing presence in the Visayas region,” ALI said.
The deal is subject to customary closing conditions including the necessary regulatory approvals from the Securities and Exchange Commission on CDPEI’s increase in authorized capital stock and approval from the Philippine Competition Commission.
ALI, Aboitiz Land and AEV formed CDPEI 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.
CDPEI earlier budgeted P10 billion in capital expenditure for the first phase of development which includes a commercial center, office towers and residential condominiums.
ALI has several estate projects in Cebu including the Cebu Park District, a 50-hectare master-planned development in Lahug and South Coast City, a 26-hectare waterside project in South Road Properties in Cebu City.
ALI has 52 estates across the country.
The property firm plans to launch P115 billion worth of projects in 2024, consisting of P100 billion in residential projects and P15 billion in commercial and industrial projects.
Around 80 percent of the residential launches will be in the premium segment and the remaining 20 percent will be in the middle and affordable market segment.
ALI registered a 32-percent increase in 2023 net income to P24.5 billion, led by strong property demand and consumer activity.
It also earmarked P100 billion for 2024 capital expenditures. Consolidated revenue rose 18 percent to P148.9 billion.