Ayala sells 23% stake in S’pore firm

Ayala International Holdings Ltd. (AIHL) has sold its 23.3-percent interest in Hermill Investments Pte Ltd. to the Singapore-based Hotel Properties Ltd. (HPL) for $47 million (about P1.5 billion).

AIHL is a 100 percent-owned subsidiary of Ayala International Pte. Ltd. which, in turn, is a 100-percent-owned subsidiary of Ayala Corp.

On the other hand, HPL currently owns 59 percent of Hermill, the holding company for The Forum Shopping Mall, a 17-story retail-cum-office development along Orchard Road in Singapore.

In a disclosure to the Philippine Stock Exchange, Ayala Corp. senior managing director and chief finance officer Rufino Manotok said the move allows Ayala International, the international arm of the Ayala Group, "to realize values and recycle capital to other investment opportunities going forward."

He said Ayala International is looking at a 15-to 20-percent return on investment in Arch Asia Property Fund (AAPF), which invests in property markets in China, India, Macau and Thailand. The Ayala Group has invested as much as $75 million in the property fund.

Arch Capital Management Co., the manager of the property fund, has found a Macau partner and a group of Hong Kong developers for a large-scale residential community project similar to the Ayala Group’s 12-hectare residential condominium community known as Serendra at the Bonifacio Global City.

In Thailand, Arch Capital has also teamed up with the Narai Property Group, a partner of Ayala International, for two residential projects.

AAPF will develop medium to high-end residential/condominium buildings, and invest in office and retail space.

AAPF is owned 43 percent by Ayala International, which has a strong record of experience in direct property investments in Asia and the United States, 35 percent by Great Arch and 22 percent by Ayala Land.

The investment is part of the Ayala Group’s broader strategy to expand its presence and explore new growth opportunities overseas by leveraging on the strengths and competencies of its core subsidiaries.

Ayala Corp. is an established and trusted Asian conglomerate with privileged access to key players and decision-makers through its extensive network of contacts in the region.