AYALA Land, Inc. (ALI) will fully own Cebu District Property Enterprise, Inc. (CDPEI) after buying the stakes of Aboitiz Equity Ventures, Inc. (AEV) and AboitizLand, Inc. for P1.81 billion.
In a stock exchange disclosure on Tuesday, ALI announced it signed a share sale agreement with AEV and AboitizLand on June 14.
Under the deal, ALI will buy the 50% equity interest of AboitizLand and AEV in CDPEI, consisting of 18.1 million shares at P100 per share. The move is expected to strengthen ALI’s presence in Visayas.
“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.
CDPEI is a joint venture company of ALI, AEV, and AboitizLand that is engaged in developing the 17.5-hectare Gatewalk Central Superblock mixed-used real estate development in Mandaue City, Cebu.
The property will feature a four-storey mall for various retail, food, and entertainment establishments; a nine-storey business process outsourcing tower; a transit terminal; and two basement levels.
In a separate disclosure, AEV said the transaction value was determined following the internal valuation of the involved parties after due diligence review.
“The transaction is aligned with the company’s strategy to optimize resource allocation and focus on specific segments of the real estate industry,” AEV said.
On Tuesday, ALI shares fell by 1.08% or 30 centavos to P28.05 apiece while AEV stocks dropped by 0.26% or 10 centavos to P38.55 per share. — Revin Mikhael D. Ochave
