Ayala Land buying Puerto Azul property for P2.3B

Property giant Ayala Land Inc. has gained a foothold in seaside estate Puerto Azul in Ternate, Cavite, with a deal to buy parcels of land worth P2.3 billion from Panlilio-led Boulevard Holdings Inc.

BHI disclosed to the Philippine Stock Exchange (PSE) that the pieces of property acquired by ALI would be used to develop a high-end mixed-used community using the Ayala Land Premier brand.

“The property is defined by a small bay with finger promontories sheltering the beach cove and a backdrop of mountains with magnificent ocean views and green forests that makes it prime real estate,” BHI said.

This agreement is still subject to a closing period in order to obtain all requisite approvals, conduct of due diligence, and other conditions precedent to closing within the next three to four months, BHI said.

“BHI is also counting on other positive synergies from the development of these parcels [of land],” the disclosure said.

While the transaction was priced at P2.3 billion, the size of the additional landbank was not disclosed.

“(The) actual size of the area (is) to be finalized after due diligence,” ALI chief operating officer Bobby Dy said, confirming that the parcels of land committed to ALI was part of the Puerto Azul area.

The Puerto Azul property is a bailiwick of the Panlilios. BHI has long been scouting for a new investor to unlock values out of its vast seaside landbank in Cavite. For at least a year now, ALI has been in discussions to acquire some of BHI’s landbank, including part of the 3,000-hectare beachfront Puerto Azul estate.

This deal with BHI is a strategic move for ALI, which is aggressively expanding its footprint across the country. Rival SM group has already established its own beachfront leisure estate empire in the south with the 5,000-hectare Hamilo Coast in neighboring Nasugbu, Batangas.

For Ayala, this is part of a strategy to replicate the Anvaya leisure estate model in other areas.

In a related development, ALI has completed a deal to buy out the 40-percent stake held by Mitsubishi Corp. in energy savings solutions provider Philippine Integrated Energy Solutions for P322.3 million.

This acquisition will effectively make PhilEnergy ALI’s wholly owned subsidiary, in turn envisioned to enhance the competitiveness of the firm’s commercial properties through a broader adoption of various energy-efficiency technologies.

ALI said Mitsubishi’s decision to divest from PhilEnergy was part of its overall strategy of capital reallocation, especially in consideration of the funding needs of other business opportunities that it wishes to pursue, both in the Philippines and across the region.