MANILA - The two Cebu affiliates of Ayala Land Inc (ALI) cleared their participation in the latter's joint venture with Aboitiz Land Inc for a new mixed-use project in Mandaue City.
In a disclosure to the Philippine Stock Exchange, Cebu Holdings Inc (CHI) and Cebu Property Ventures & Development Corp (CPVDC) said their respective boards of directors accepted ALI's assignment of the right to subscribe to 10 percent and five percent, respectively, of the authorized capital stock of the joint venture company.
ALI will retain the remaining 35 percent stake in the 50-50 joint venture with AboitizLand, the vehicle for the development of a new 15-hectare city center featuring residential, retail and office components. The new integrated and master planned township is set for launch next year.
CHI and CPVDC's participation in the project will allow Ayala Land to benefit from the local knowledge and expertise of its Cebu counterparts, resulting in better efficiencies and possible synergies.
CHI is the developer of Cebu Business Park, while its 76 percent-owned subsidiary CPVDC is the developer of Cebu IT Park. These two form Cebu Park District, ALI’s biggest project outside Luzon.
CHI's operations consist of rental of retail space, commercial land sales, office and residential condominium sales, sale of proprietary sports club shares, sale of residential subdivisions, lease of office space through 76 percent-owned subsidiary CPVDC, and hotel development and operations through 37 percent-owned affiliate Cebu Insular Hotel Co Inc.
