ALI, Gatchalians in talks over ‘Plastic City’ dev’t
Property giant Ayala Land Inc. seeks to strike “as soon as possible” a deal with the Gatchalians on the joint development of the latter’s 60-hectare “Plastic City” estate in Valenzuela City.
ALI’s bid for this project forms part of efforts to expand to areas where it has no presence yet.
Another area of interest, according to ALI chief finance officer Jaime Ysmael, is Rizal.
When asked about reports that ALI was in talks with IRC Properties over a two-hectare property in Binangonan Rizal, Ysmael said he could not comment on any prospective transaction with IRC. He, however, said such an areas looked attractive.
On Plastic City, Ysmael said, “We’re hoping that we will close that soon,” adding that negotiations with the Gatchalians were ongoing.
He said it would most likely be a joint venture rather than a property buyout, with ALI eyeing majority ownership.
“We believe that the property is quite attractive and the size is big enough,” Ysmael said, adding that the Gatchalian estate would be suitable for residential development, initially for the Avida brand, with a retail segment.
Asked how big a project ALI was looking at, he said it’s the “entire Plastic City.”
Plastic City Industrial Corp. has long ceased its plastic manufacturing and commercial operations. Its subsidiaries, however, have leased out warehouses and buildings in the estate.
The intent is to close a deal as soon as possible so that development could start right away, Ysmael said.
“There’s a strong spending power in that area (which has) a lot of rich industrial manufacturers owned by Chinese businessmen even in the adjoining province of Bulacan,” he said.
Valenzuela is an industrial city, which also serves as the northern gateway to Metro Manila, having two major highways traversing it- MacArthur Highway and the North Luzon Expressway.
