PHILIPPINE REAL ESTATE and RELATED NEWS in and around the country . . .

Ayala, Aboitiz forms venture for P10-B Mactan Airport

Published on 10 September 2012 [ ]

Ayala Corp. and Aboitiz Equity Ventures Inc. (AEVI) are all set to bid as a joint venture for the Mactan-Cebu International Airport Passenger Terminal project, which is estimated to cost P10 billion.

To take part in the government’s public-private partnership program, Ayala Corp. and AEVI entered into a memorandum of agreement to form a 50-50 joint venture company that will serve as their vehicle to bid for the Mactan Airport project.

In a statement, the redevelopment of the Mactan Airport will require the construction of a new international passenger terminal since it is currently operating at over capacity with passenger volume exceeding five million annually and projected to grow even faster with the expected increase in tourist arrivals.

“We cannot think of a better partner for this project than the Aboitiz group who has not only built a long history and heritage in Cebu City, but also has a successful track record in undertaking significant size projects in multiple industries,” Ayala Corp. President and Chief Operating officer Fernando Zobel de Ayala said.

“Both groups strongly believe in the potential of the Mactan Airport to be a compelling gateway to the country for international passengers and to the Visayas for the growing domestic travelers,” Ayala added.

AEVI President and Chief Executive Officer Erramon Aboitiz, meanwhile, said, “We are equally excited about this partnership with Ayala, especially as it is for a project that gives AEVI the opportunity to enter into a strategic new segment that is crucial to developing both the country’s transportation infrastructure as well as its tourism potential”.

Aboitiz also noted that combined with the Ayala group’s strengths and competencies that have also been honed over more than 100 years of doing business, they are very optimistic about the success potential of the project.

“Moreover, the fact that the project is in Cebu, which is home to the Aboitiz Group, gives it more special meaning to us,” he added.

The government is expected to announce the bidding for the Mactan airport project before the end of the year. Both parties will enter into a definitive agreement once the bid rules or the terms of reference for the project have been finalized and published by the government, and will likewise explore partnerships with experienced global airport operators to complete its consortium.

Ayala, through its property arm, Ayala Land, Inc., has also built a significant presence in the country’s second largest city. It has a total land bank of close to 200 hectares that includes some of the city’s landmarks such as the Cebu Business Park, the Ayala Center Cebu, the Asiatown IT Park and high-end residential developments.

real estate central philippines
Copyright ©2008-2018