Vol. XXI, No. 171 [ Business World Online ]
Wednesday, April 02, 2008 | MANILA, PHILIPPINES
Sale centers on parking facility in Makati; development depends on success of ’One Central’
AYALA LAND, Inc. has sold three wholly owned subsidaries to fellow property developer Megaworld Corp. to raise funds for P24.3 billion worth of expenditures this year.
In separate disclosures yesterday, the property firms said the transaction was worth P902 million and was 
completed last March 31.
"Considered as non-strategic assets, the proceeds from the disposal of said equity stake will enable [Ayala Land] to use the same to help fund its capital expenditure program for 2008," Ayala Land told the exchange.
Alfonso Reyes, Ayala Land spokesman, said in a telephone interview that the three subsidiaries were Stonehaven Land, Inc., Piedmont Property Ventures, Inc., and Streamwood Property, Inc.
will depend on how fast condo units at the planned
One Central will sell.
"These are quite minor subsidiaries of [Ayala Land] which are engaged in the operations of a public parking facility on Valero Street in Makati," he said.
Ayala Land added in its disclosure that Megaworld intends to operate the subsidiaries to undertake the construction of a mixed-use development project on the property now occupied by public parking spaces.
Sought for comment, Megaworld investor relations head John T. Hao said the acquisition of the three Ayala Land subsidiaries means the inclusion of the property in Megaworld’s portfolio.
"There are still no definite plans on what the company would make out of the property. It will depend if we have finished selling One Central," he told BusinessWorld.
He was referring to Megaworld’s 50-storey high-end residential condominium project at the corner of Sen. Gil Puyat and Ayala avenues, also in Makati City.
Mr. Hao said payment for the acquisition would be drawn from internally generated funds and proceeds from its stock rights offering last year.
"Upon development of the property, Megaworld shall make available public parking slots to replace the present public parking facility," Megaworld said in its disclosure.
Ayala Land earlier said that it plans to finance this year’s P24-billion capital expenditure program through bank loans and internal cash.
Of the amount, 42% and 30% will be allotted to the residential development and corporate business divisions, respectively.
Ayala Land aims to launch 21 new residential projects within Metro Manila and another three in the Visayas and Mindanao region. It has three brands, namely: Ayala Premier, Community Innovations, and Avida Land.
Under the corporate business division, the company is speeding up the construction of business process outsourcing buildings such as the Dela Rosa E-Services building, the Nuvali Technopod Building I, San Lazaro Building I and buildings within the UP North Science and Technology Park and Bonifacio Global City.
Ayala Land, which also operates shopping centers, is set to refurbish Glorietta 2, which was hit by an explosion that killed eleven people last year. The company claims terrorists were behind the blast, but the government says it was due to gas buildup.
It will also open the second phase of Greenbelt 5. The company is also in the hotel business through Hotel InterContinental Manila. Fairmont and Raffles hotels will soon be built in the Glorietta complex.
With a market capitalization of P140.13 billion, Ayala Land is controlled by Ayala Corp., the country’s largest and most diversified conglomerate. — Lovely Nica P. Lee
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