Ayala Land buys out Aboitiz in Cebu firm

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MANILA, Philippines — Ayala Land Inc. (ALI) will take over its joint venture with the Aboitiz group in a P1.81-billion share purchase deal, allowing the Zobel family-led real estate giant to consolidate its ownership of the Cebu District Property Enterprise Inc. (CDPEI).

In a stock exchange filing on Tuesday, ALI said it would buy all of the shares held by Aboitiz Equity Ventures Inc. and Aboitiz Land Inc. in CDPEI.

The transaction involves a total of 18.1 million shares tagged at P100 apiece, consisting of 1.81 million common shares owned by AboitizLand and 16.29 million series A preferred shares held by AEV.

Combined, these make up a 50-percent equity interest in CDPEI, the Aboitiz firms’ joint venture with ALI that is currently developing a 17.5-hectare estate in Mandaue City, Cebu.

“ALI envisions Gatewalk Central to be one of its key Cebu estates that will contribute to ALI’s growing presence in the Visayas region,” ALI said in its disclosure.

READ: Ayala Land: True trailblazer in sustainable estates

Once the transaction is finalized pending the approval of the Securities and Exchange Commission and clearance from the Philippine Competition Commission, ALI will fully own CDPEI.

In the January to March period, ALI’s net income swelled by 39 percent to P6.3 billion on heightened consumer activity and property demand. —Meg J. Adonis INQ