ALI, Mitsubishi form P1.2-B jt venture

MANILA, Philippines - Property giant Ayala Land Inc. (ALI) and Japan’s Mitsubishi Corp. have formed a P1.2-billion joint venture to promote increased energy efficiency in the Philippines.

 In a disclosure to the Philippine Stock Exchange yesterday, ALI said it will own 60 percent of the new firm, Philippine Integrated Energy Solutions Inc. (PhilEnergy), while Mitsubishi will hold the remaining 40 percent.

The joint venture marks the latest cooperation between the Ayala and Mitsubishi groups which is a long-term strategic partnership that stretches all the way back to 1974.

PhilEnergy has budgeted close to P1 billion for the construction of two district cooling system (DCS) plants in Ayala Center in Makati and in Alabang Town Center in Muntinlupa. The DCS facilities are expected to provide significant savings on both capital expenditure and operating costs.

To be managed by ALI, the joint venture is also planning other DCS projects in Cebu, Cagayan de Oro and Quezon City.

“We are very excited about this new partnership with Mitsubishi. Being able to manage the occupancy costs for the tenants in our portfolio leasing properties is going to be very critical to the continued success of Ayala Land in this very competitive market environment,” said ALI president and chief executive officer Antonino Aquino.

For his part, Mitsubishi director Nobuaki Kojima said: “I do hope PhilEnergy will expand its business not only in the Philippines but also overseas. And we at Mitsubishi promise to make every effort towards the success of this project.”

Mitsubishi will play a critical role by providing critical technical support through its extensive network of affiliated energy-saving companies and which have leading track records in Japan and around the region.