ALI buys out Aboitiz Group in Cebu JV for P1.81 billion

MANILA, Philippines — Property giant Ayala Land Inc. (ALI) is taking over the developer of Gatewalk Central in Cebu as the company moves to buy out 50 percent stake of its partners for P1.81 billion.

ALI, in a stock exchange filing, said it has entered into a share sale and purchase agreement with Aboitiz Land and Aboitiz Equity Ventures (AEV) to acquire their 50 percent equity interest in Cebu District Property Enterprise Inc. (CDPEI).

The shares to be purchased under the transaction include 1.81 million common shares owned by Aboitiz Land and 16.29 million Series A preferred shares of AEV at a price of P100 apiece.

The valuation was agreed upon by the parties following due diligence review.

Closing of the transaction is subject to necessary regulatory approvals from the Securities and Exchange Commission on CDPEI’s increase in authorized capital stock and the Philippine Competition Commission.

ALI said the acquisition will consolidate its ownership of CDPEI, the developer of Gatewalk Central.

“ALI envisions Gatewalk Central to be one of its key Cebu estates that will contribute to ALI’s growing presence in the Visayas region,” the company said.

For its part, AEV said the transaction is aligned with the company’s strategy to optimize resource allocation and focus on specific segments of the real estate industry.

CDPEI was incorporated in 2014 as a joint venture company of ALI, Aboitiz Land and AEV with the purpose of engaging in the business of real estate development.

It is the developer of Gatewalk Central, a 17.5-hectare mixed-use estate in Mandaue City.