Property giant Ayala Land Inc. has agreed to transfer its 55-percent interest in a Cebu-based joint venture with the Gaisano family to an affiliate based in the province.
A Philippine Stock Exchange filing on Tuesday showed that Ayala Land’s interest in Taft Punta Engano Property Inc., the joint venture with the Gaisanos, will be transferred to Cebu Holdings Inc.
Ayala Land owns 49.8 percent of Cebu Holdings, which is also listed on the local bourse.
The joint venture involves a planned 12-hectare mixed-use development to rise on Mactan island, near the Shangri-La Hotel.
“This transaction will allow the company to consolidate its business resulting in improved efficiencies and synergy creation to maximize opportunities in the Cebu real estate market,” Ayala Land said in the filing.
For Cebu Holdings, the deal would “enhance its portfolio and operations for mixed-use communities and related business,” the company said in a separate filing. “It is consistent with the thrust of [Cebu Holdings] to expand its business in the robust Cebu real estate market.”
The property to be developed is close to many of Mactan’s tourist-oriented establishments. It is envisioned to become an integrated mixed-use development, possibly with residential, retail and hotel components, Cebu Holdings added.
“The proposed development will offer a value proposition, which is distinct from that of the other projects of [Cebu Holdings] in Cebu City,” the company added.
The partnership was formalized late April, and represented an expansion of the relationship between the Zobels of Ayala Land and the Gaisano family, which also owns the Metro Gaisano retail chain. Metro Gaisano is an anchor tenant of Ayala Center in Cebu as well as other Ayala developments like Market!Market! in Taguig and its Alabang, Imus and Marquee mall developments.