MANILA, Philippines - Property giant Ayala Land Inc. continues to be in talks with the Gatchalian group for a possible investment in a 60-hectare property in Valenzuela City that used to house the country’s biggest fully-integrated plastic manufacturing complex.
ALI president Antonino T. Aquino said discussions with the Gatchalian group who owns the sprawling Plastic City remain ongoing and expects this to go on for several months.
Aquino said the group has always been on the lookout for large properties in strategic areas, particularly in the north and eastern part of the metropolis.
He said the company is looking to develop several mixed-use complexes to further expand its residential and commercial portfolio.
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 used to house the warehouse facilities of Plastic City Industrial Corp. and Philfoods Inc. until the two firms ceased operations in 2002 due to losses.
In a filing with securities regulators, the Gatchalians through Wellex Industries Inc., said the property is seen to contribute significantly towards the group’s maximum operation and financial position due to its encouraging prospect.
“Management is continuously in search for a reliable joint venture partners who have the means to continue its operations,” Wellex said.
Aside from the Valenzuela property, ALI is also looking at the C5 Ortigas area as possible site for expansion.
ALI is one of the largest real estate conglomerates in the Philippines, with over eight decades of experience in the property development sector. The company’s principal strength lies in its involvement in highly diversified business segments such as the development of high to low-end residential, commercial, office, hotel and resort properties.
ALI has earmarked P37 billion for its capital spending this year – its highest capex ever – mostly to go to residential projects followed by shopping centers and hotels.
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