Metro Pacific still biggest landowner in Global City

Metro Pacific Corp. (MPC) will remain the biggest landowner in the Bonifacio Global City, owning 23 percent or 13.11 percent of the 57-hectare not saleable area inside the former Army base.

Under the agreement signed between MPC and the Ayala Land Inc. Greenfield Development Corp. (ALI-GDC) consortium last Saturday, the latter will own 50.4 percent of Bonifacio Land Corp. after it agreed to pay off a $90-million loan owed by MPC to another First Pacific-subsidiary Larouge BV which was secured by a majority share in BLC.

Sources said the Larouge loan will be paid upon the signing in January when closing terms and conditions of the sale have been finalized.

MPC, which is Hong Kong-based First Pacific’s flagship company in the Philippines, owns 72.9 percent of BLC of which 50.4 percent was sold to the ALI-GDC consortium. This leaves MPC with 22.5 percent and three seats in the 15-man BLC board. But with the sale, MPC will not longer have board sets in Fort Bonifacio Development Corp., which is jointly owned by BLC and the Bases Conversion Development Corp. (BCDA) and which is the developer of the Global City.

MPC officials explained that of the 57-hectare net saleable area in the Global City, MPC will directly own 10.4 hectares while a joint venture between ALI-GDC and MPC will have the balance of 46.6 hectares. And of the 46.6 hectares, ALI-GDC will get 50.4 percent or 23.5 hectares, or around 11.7 hectares each for ALI and GDC owned by United Laboratories’ Jose Yao Campos, while MPC will still own around 23 hectares.

Given this, MPC will directly own 10.4 hectares and indirectly own 23 hectares, for a total of 13.11 hectares. "MPC will remain the largest landowner in the Global City, although it would not have majority control of Fort Bonifacio Development Corp., MPC officials said.

ALI and GDC have committed to infuse funds into the endeavor and development the Global City further, which is expected to result in a faster appreciation in the value of MPC’s holdings.

Sources told The STAR that the ALI-GDC consortium may put in around P2 billion in the next 18 months for the development of the Global City, which is in addition to the P800 million which they earlier committed to lend to MPC for a particular project inside the Taguig complex.

Aside from the $90-million cash that will go to the coffers of First Pacific, the agreement signed over the weekend also involves the assignment to ALI-GDC of an additional P655 million in BLC notes currently owed by BLC to MPC.

ALI chairman Fernando Zobel de Ayala said the addition of Fort Bonifacio into ALI’s portfolio will provide a great opportunity for the latter to replicate its success in the development of the Makati central business district.

For his part, ALI president Francisco Licuanan III said they took an interest in the property as early as 1995, since it is the single most attractive parcel of land in Metro Manila today. He added that they envision Fort Bonifacio as a natural and complementary extension of the Makati CBD.

"The ALI-GDC consortium has majority control over FBDC so ultimately they will benefit the most. They will control the FBDC Board, thus having control over the direction and development of the Global City," an MPC official said, even as he added that MPC’s remaining 23 percent in BLC will not translate into outright ownership.

The official explained that MPC will not exactly have title to a separate hectarage, and instead will have a "derivative" ownership if one looks at it from a BLC share perspective. "However MPC will be a significant minority." the official said.