Shareholders of Prime Orion Philippines Inc. approved on Tuesday the entry of Ayala Land Inc. as the new majority investor in the company, alongside an increase in the authorized capital to P7.5 billion from P2.4 billion.
ALI is buying 2.5 billion in new shares to be issued by POPI out of the increase in authorized capital stock for P2.25 a share, giving it 51 percent control.
POPI chair Felipe Yap said the fresh capital infusion from ALI would be enough to fund the company’s redevelopment of Tutuban Center, its popular bazaar hub in Divisoria.
To date, POPI is earning about P400 million annually in rental income from Tutuban Center, which has about 60,000 square meters in gross leasable area (GLA), offering various concepts from wholesale and bargain stalls, to regular retail and food outlets.
The GLA is expected to soon more than double, which will increase leasing income, as POPI has so far built only on an eight-hectare portion of the 20-hectare total landbank.
Last March, the Philippine National Railways (PNR) turned over to POPI’s indirect subsidiary, Tutuban Properties Inc. (TPI), about three hectares of leased property along Tayuman and, in June, the PNR turned over an additional 5.8 hectares.
With the turnover of additional land and air rights, TPI now has control of more than 17 hectares of the 20-hectare PNR property, which is vital to the redevelopment of Tutuban Center and its integration with the North South Railway Project of the Department of Transportation and Communications (DOTC) and PNR. Doris Dumlao-Abadilla