Posted on
July 09, 2013 12:19:11 AM [ BusinessWorld Online ]
LISTED FIRMS
Ayala Land, Inc. and Puregold Price Club, Inc. have struck a deal to jointly
build supermarkets in the property giant’s mixed-use projects, Ayala Land said
in a statement yesterday.
“Varejo Corp., a subsidiary of Ayala Land,
announced today that it had entered into a joint venture agreement with Estenso
Equities, Inc., a wholly owned subsidiary of Puregold Price Club, to develop
and operate mid-market supermarkets for some of Ayala Land’s new integrated and
mixed-use developments,” the statement read.
Ayala Land
President Antonino T. Aquino said the agreement will add to the parties’
existing joint ventures.
“The joint
venture further expands our previous tie-ups with the Puregold group in Harbor
Point in Subic and Fairview Terraces in Quezon City,” the statement quoted Mr.
Aquino as saying.
“This new
supermarket product will further enhance our retail offerings which have been
recently expanded to include our other department store and convenience store
joint ventures.”
Puregold
officials were not immediately available for comment.
The
supermarkets, according to the statement, will operate under a new brand to be
developed by Varejo and Estenso Equities.
Puregold, one
of the country’s largest supermarket operators, last week told the Philippine
Stock Exchange that it had incorporated Estenso Equities as a vehicle for
investments in food retail businesses.
As of
end-March, Puregold’s retail network counted 165 stores, consisting of
Puregold, S&R and Parco outlets.
“This is part
of Ayala Land’s growth strategy for its retailing business and in line with the
objective of establishing integrated, mixed-use communities across the
country,” the property developer said.
Ayala Land
has been adding new features to its projects.
Last week, it
announced it had entered into an agreement to acquire Whiteknight Holdings,
Inc., which owns 33% of Mercado General Hospital, Inc. The investment, Mr.
Aquino had said then, “will accelerate the provision of medical facilities in
our new and existing integrated, mixed-use communities.”
Ayala Land’s
net income grew by 20.83% to P3.19 billion in the first quarter from P2.64
billion in the same three months last year as revenues climbed by 39.35% to
P18.52 billion from P13.29 billion.
In the same
comparative periods, Puregold doubled its net income to P961.82 million from
P468.59 million, as consolidated revenues increased by half to P16.09 billion
from P10.74 billion with the opening of new stores.
Yesterday,
shares of Ayala Land lost 95 centavos or 3.17% to close at P29 apiece, while
those of Puregold also shed 95 centavos or 2.61% to end at P35.40 each. --
Cliff Harvey C. Venzon
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