Property giant Ayala Land Inc. is expanding its footprint in Mindanao through a property joint-venture deal with the Alcantara group involving the redevelopment of a 25-hectare plywood factory in Davao’s Lanang district into an upscale mixed-use community.
In separate disclosures to the Philippine Stock Exchange yesterday, ALI and Alsons Consolidated Resources announced that Alsons Development and Investment Co. (Aldevinco)—an investment company of the Alcantara group and one of the leading property developers in Davao City—has signed a joint-venture agreement with ALI for the project.
Under the deal, the Alcantara group will contribute the land—currently the site of a hardly used plywood factory—in exchange for a 40-percent interest in the project while ALI will control 60 percent. Title to the prime Lanang property is currently held by a company jointly owned by Alsons and its parent Aldevinco.
Based on Alson’s disclosure, the project will involve the development of residential and commercial lots, low- to mid-rise towers and a retail component. It is expected to add more than 2,000 condominium units and about 7,000 square meters of leasable space to ALI’s growing residential and commercial leasing portfolio.
ALI president Antonino Aquino welcomed the partnership with the Alcantara group, noting that this would “provide ALI the opportunity to further expand its presence and growth in key regional areas.”
Alsons president Tomas Alcantara said the partnership with the Ayala group would “provide synergy between long-time Davao property market leader Aldevinco and property giant Ayala Land.”
Chief finance officer Luis Ymson Jr. said the group’s plywood factory was still operating but at a very limited capacity and with the Lanang district’s rapid progress, it made sense to relocate the factory and redevelop the current site.
The property deal raises ALI’s stake in Davao, a center of trade and industry in Mindanao. ALI has an existing 10-hectare project in Davao, the 10-hectare mixed-use Abreeza, which is a partnership with another leading Mindanao business group, Anflo Management and Investment Corp. of the Floirendo family.
Elsewhere in Mindanao, ALI is also constructing its Centrio development in Cagayan de Oro.
ALI expects to sustain a double-digit growth in both net profit and revenues this year, despite already coming from a very high base. ALI earlier reported a 27-percent growth in net profit to a record-high P9.04 billion, exceeding market expectations.
In an earlier briefing, ALI’s Aquino said: “We’ve put a strategy in place that will hopefully continue and ride the momentum in what we see is happening in the Philippine economy.