Ayala Land raises stake in Malaysian property firm

Property giant Ayala Land Inc. has boosted its interest in Malaysian property and construction firm MCT Bhd to 50.19 percent, in line with its vision to grow this offshore business to be a major real estate player in Malaysia.

Through 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, ALI disclosed to the Philippine Stock Exchange.

“The 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.”

The disclosure also noted that this transaction would oblige RWIL to conduct a mandatory takeover offer, in accordance with the laws of Malaysia.
ALI first bought into MCT, formerly known as GW Plastics Holdings Bhd., in 2015 and increased its ownership in several phases since then.

Established in 1999 as a construction firm, 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 precast 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.

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