MANILA, Philippines - Philippine Estates Corp. (PHES), the property development arm of plastics king William Gatchalian, is hammering out an agreement with Ayala Land Inc. (ALI) to develop its property in Cavite into a residential subdivision.
In a disclosure to the Philippine Stock Exchange, PHES said its board has authorized the development through a joint venture of its real estate property in Cavite into a residential or subdivision project.
PHES said it is now in the process of finalizing the terms of the joint venture with ALI’s economic housing unit Amaia Land Corp.
This will be the second joint venture between ALI and the Gatchalian family. Middle-income housing unit Avida Land Corp. signed in May a deal to develop the Gatchalians’ 60-hectare property in Valenzuela City, which used to house the country’s biggest fully-integrated plastic manufacturing plant, into a mixed-use center.
The property will be developed into a residential, business and/or commercial condominium and/or subdivision project.
The Gatchalian Group has long been searching for a strategic partner to convert its huge estate in Valenzuela into a modern mixed-use complex to maximize the untapped potential of the property.
The property formerly hosted the warehouse facilities of Plastic City Industrial Corp. and Philfoods Inc. until the two firms ceased operations in 2002 due to losses.
The Gatchalians said the property is seen to contribute significantly towards the group’s maximum operation and financial position due to its encouraging prospect.