The Gatchalian family may now pursue the planned development of its 17-hectare “Plastic City” estate in Valenzuela City in joint venture with Ayala Land Inc.
The possibility emerged after the rehabilitation case against Wellex Industries’ subsidiaries was terminated and the loans with Philippine National Bank settled.
Wellex said in a disclosure to the stock exchange it received information that the rehabilitation case of its subsidiaries was terminated after the payment of a loan by the principal borrower.
“In this regard, the properties of its subsidiaries, marked with encumbrances due to the existence of the rehabilitation court case, will now be free from any lien and encumbrances,” Wellex said.
Wellex said the termination of the corporate rehabilitation case also enabled its subsidiaries to push an agreement with Avida Land, the affordable housing brand of Ayala Land.
“It must be noted that the joint venture agreement with Avida Land has not been rescinded. In fact, the termination of the rehabilitation case and the subsequent lifting of the annotations on the titles covering the Plastic City properties are part of the responsibilities of the company under the (agreement) with Avida Land,” Wellex said.
“Now that the court case has been terminated, the annotations pertaining to the encumbrance can be lifted, paving the way for the aforementioned property development to take place,” it added.
Wellex said the property, once fully developed would generate cashflows to the subsidiaries involved in the project.
“It is, however, too early to make any comment on the financial impact of the Valenzuela project at this point,” it said.
Wellex’s unit Philippine Estates Corp. in 2012 signed an agreement with Avida Land to develop the company’s properties in Valenzuela.
The plan involves the development of the property into a mixed-use residential and retail development over a period of 10 years.
The 17-hectare lot forms part of the Gatchalian family’s 60-hectare “Plastics City.”
The Plastic City used to house the warehouse facilities of Plastic City Industrial Corp. and Philfoods Inc. until the two ceased operations in 2002 due to losses.