MANILA, Philippines—Property giant Ayala Land Inc. has raised its stake in Cebu through a joint venture with the Metro Gaisano group to develop a 12-hectare raw land in Mactan into a leisure-oriented mixed-use community.
ALI has agreed to take a 55-percent stake in the joint venture with the Vicsal group of Cebu to develop the property across from the plush Shangrila Hotel on Mactan Island.
“This joint venture opens up another opportunity to work with a strong partner, such as the Vicsal group, in expanding our presence and further creating value in the rapidly-growing and progressive market in Cebu,” ALI president Antonino Aquino said in a statement issued Friday night.
The property would be envisioned as an integrated mixed-use development with a leisure-oriented character, possibly with residential, retail and hotel components, ALI said.
The proposed development is seen offering a value proposition distinct from that of the other projects of Ayala Land in Cebu City. “Through this joint venture with the Vicsal group, Ayala Land hopes to further strengthen and expand its presence in the robust Cebu real estate market,” the statement said.
This is the third property deal announced in a single week by ALI, reflecting the property developer’s aggressive expansion of its landbank in key growth areas. Earlier last week, ALI signed a joint venture to pursue property development projects in Cebu with Aboitiz Land and also entered into a preliminary agreement to acquire some properties of the Panlilio-led Boulevard Holdings Inc., one of the biggest seaside landowners south of Metro Manila.
ALI is taking the lead in the project but apart from just contributing the land, Vicsal is expected to contribute funds for the mixed-use project.
The Vicsal group refers to a branch of the vast Gaisano clan rooted in Cebu. The group is run by siblings Margaret Gaisano-Ang, Jack, Edward and Frank Gaisano. Under Vicsal Development Corp. (named after their parents Victor and Sally), the Metro Gaisano group operates a chain of shopping malls and department stores.
The transaction also marks an expansion of Vicsal’s relationship with the Ayala group. Metro Gaisano, for one, is an anchor locator at Ayala Center in Cebu and is likewise present in Market! Market! in BGC as well as in ALI’s Alabang, Imus and Marquee mall developments.