In a statement, MPC said it closed the deal last April 17, transferring the loan to the ALI-GDC group in exchange for a 50.4-percent stake in BLC, the developer of the Bonifacio Global City.
Before the deal, which was hatched in late November last year, could be finalized, the necesary approvals of both parties and MPC’s parent company, Hong Kong-based First Pacific Co. Ltd., had to be secured.
MPC said the loan transfer will result in an 80.6-percent reduction in its total debts to P2.5 billion by the end of the year, although it would also result in the reduction in its interest in BLC to approximately 9.6 percent.
However, it said it has received titled properties at Bonifacio Global City equivalent to 10.4 hectares valued at P3.8 billion, as repayment of past advances to BLC.
MPC has also assigned P655-million worth of BLC notes to the Ayala-Campos joint venture, while still owing Larouge $20 million in interest payments.
On Nov. 23, 2002, the Ayala-Campos group represented by Ayala Land Inc. (ALI) and Greenfield Development Corp. (GDC), respectively, signed an agreement with MPC involving the debt-to equity exchange.
Under the terms and conditions of the agreement, ALI-GDC agreed to acquire, and MPC agreed to transfer by way of dacion en pago, the controlling interest in BLC to effect the settlement of the principal amount of the aforesaid $90-million loan.
Based on the 55 hectares of semi-developed saleable land area involved in the transfer, ALI-GDC will be paying P35,000 per sqm., already adjusted for existing assets and liabilities of Fort Bonifacio Development Corp. (FBDC) – the joint venture between the government and BLC – and BLC but does not cover for future development costs.
In 1995, the MPC-led consortium bought the then 214-hectate property for P33,000/sqm., beating out ALI’s own bid then of P24,000/sqm. – Conrado Diaz Jr.