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

Ayala cool to Clark project

By Jenniffer B. Austria | Jun. 28, 2015 at 10:40pm

Ayala Land Inc. said it is still undecided if it will make a bid for the property or not, despite purchasing auction documents for the Clark Green City project.

Ayala Land chief finance officer Jaime Ysmael said in an interview at the sidelines of a recentforum sponsored by the Shareholders Association of the Philippines the company had not made a decision on the master-planned new metropolis in Central Luzon because of the “lease-hold” strategy of the project.

“We looked at it and we are looking at it. But I don’t know exactly if we are going to bid for that. We are still studying it,” Ysmael said.

He said there was no development potential for Clark Green City project because of its lease-hold feature.

“Lease-hold has very limited or no development potential. But it is still an  interesting project. We will just have to figure it out how we will develop it considering that it is lease-hold,” Ysmael said.

The amended term of reference issued by state-owned Bases Conversion Development Authority for the bidding of the phase 1 of the Clark Green City stated that the winning property firm should enter into a 50-year long term lease agreement, renewable for another 25 years, with the government.

Another factor that is holding back Ayala Land from bidding in the project is  the huge mixed-use township development it is developing in Porac, Pampanga called Alviera.

Alviera is a 1,100-hectare development, where Ayala Land plans to invest P90 billion over the next 20 years. “We plan to focus on that first,” Ysmael said.

Phase 1 of the Alviera involves 207 hectares comprising of the new industrial park, the country club, two academic institutions and three Ayala Land residential communities.

Robinsons Land Corp. earlier said its interest level in the rebidding of Clark Green City was not high because it involves a long term lease on the property and not an actual sale.

Other companies looking to Clark Green City is Megaworld Corp. of tycoon Andrew Tan and Filinvest Land Inc. of the Gotianun family.

The BCDA last week said it extended for two months the bidding of phase 1 of  Clark Green City development to give property developers more time to study the project.

Meanwhile, Ysmael said it would defer to next year its planned issue of up to P2-billion Homestarter Bonds.

Homestarter Bonds is an interest-earning financial instrument that primarily targets retail investors who plan to invest funds that may be used as full or partial downpayment in the purchase of an Ayala Land property.

real estate central philippines
Copyright ©2008-2018