Posted on August 15, 2015 12:51:00 AM
[ BusinessWorld Online ]
PROPERTY giant Ayala Land, Inc. said
it is spending P5.6 billion to acquire a majority stake in the firm that owns
Tutuban Center in Divisoria -- the site of the planned transfer station for the
North South Railway Project -- in a bid to further boost its leasing business.
In a disclosure to the Philippine
Stock Exchange on Friday, Ayala Land said it will subscribe to 2.5 million
common shares of Prime Orion Philippines, Inc. (POPI), which is equivalent to a
51.36% stake.
"With the entry of ALI, POPI will
be able to benefit from the expertise and resources of ALI and optimize the
development of its property assets, especially Tutuban Center," POPI said
in a separate disclosure on Friday.
Tutuban Center, which sits on a
20-hectare property, will be the site for the planned North-South Railway
Project Transfer Station which will interconnect with the Light Rail Transit
Line 2 West Station. Initial studies show this will result in additional
400,000 foot traffic per day in the Tutuban Center area.
The retail complex has a gross
leasable area of about 60,000 square meters (sq.m.). Prime Orion had said it
will expand the leasable area of Tutuban Center by 40,000 sq.m. from the
current 60,000 sq.m. in the next two to three years.
"This acquisition is aligned with
ALI’s thrust of expanding its leasing business," Ayala Land's disclosure
read.
To accommodate Ayala Land's
subscription, POPI's board of directors allowed the increase in its authorized
capital stock to P7.5 billion from P2.4 billion.
"For this purpose, the Board
shall call a special stockholders’ meeting to secure the approval of its
stockholders on the proposed amendments," POPI said.
Shares in Prime Orion shed six
centavos or 2.59% to end the week at P2.26 apiece, while those of Ayala Land
lost 50 centavos or 1.32% to close at P37.50.
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