Ayala Land farms out equity in AboitizLand joint venture to Cebu property firms

Ayala Land Inc. is assigning part of its stake in a joint venture deal with AboitizLand Inc. to two Cebu-based affiliates for the development of lands in Mandaue City.

 

In a disclosure to the Philippine Stock Exchange, Ayala Land said it assigned 10 percent to Cebu Holdings Inc. (CHI) and 5 percent to Cebu Property Ventures & Development Corp. (CPVD) of the authorized capital stock of the joint venture with AboitizLand. 

 

Ayala Land said it is keeping a 35 percent equity in the joint venture. 

 

The partnership primarily covers the development of a 15-hectare property in Mandaue City into a mixed-used city center.

 

"This undertaking will allow the company to benefit from the local knowledge and expertise of CHI and CPVDC, leading to better efficiencies and possible synergies that will maximize opportunities in the Cebu property market," the disclosure read.

 

On Monday, Ayala Land and AboitizLand signed a 50-50 joint venture deal to develop the land in Mandaue.

 

The firms partnered to buy and develop properties in Cebu in April 2013. – Danessa Rivera/VS, GMA News