Property giant Ayala Land Inc. has boosted its interest in Malaysian property and construction firm MCT Bhd to 50.19 percent from 32.95 percent, in line with its vision to grow this offshore unit to be a major real estate player in Malaysia.
Through its wholly-owned subsidiary Regent Wise Investments Limited (RWIL), ALI signed a share purchase agreement to acquire an additional 17.24 percent share in MCT Bhd, subject to completion of certain conditions, the property developer disclosed to the Philippine Stock Exchange on Tuesday.
“This increase in ownership will strengthen ALI’s commitment to enhance MCT’s operations and expand its business further,” the disclosure said. “This will also provide ALI with a greater opportunity to take advantage of the growth potential and long-term prospects of the real estate sector in Malaysia and will affirm ALI’s role as a key player in the ASEAN (Association of Southeast Asian Nation) property sector.”
“With ALI’s solid track record in developing large-scale, integrated, mixed-use and sustainable estates across the Philippines and in growing its diversified product lines, we believe that it is in a highly-capable position to boost the performance and enhance the value of MCT,” the disclosure said.
The disclosure also noted that this transaction would oblige RWIL to conduct a mandatory take-over offer, in accordance with the laws of Malaysia, once the share purchase agreement becomes unconditional.
ALI first bought into MCT, previously known as GW Plastics Holdings Bhd., in 2015 and increased its ownership in several phases since then.
First established in 1999 as a construction company, MCT specializes in mixed-use projects that include retail, office, hotel, and mid- to affordable residential developments in Malaysia. MCT delivers residential projects at lower costs by using the modular construction technique and by being an integrated builder with an in-house design team, in-house trading company, direct execution of specialist works and its own pre-cast and ready-mixed concrete plants.
A few years ago, ALI decided to unwind its property investment in mainland China and instead focus its overseas investing activities closer to home in Southeast Asia.