MANILA, Philippines—The conglomerate Aboitiz Equity Ventures Inc. is diversifying into the real estate business with the acquisition of the privately held Cebu property arm of the controlling Aboitiz family.
In a disclosure to the Philippine Stock Exchange on Friday, AEV said its board had approved a proposal to buy 100 percent of Aboitiz Land Inc. for P3.2 billion. AEV will purchase AboitizLand from its major shareholder, Aboitiz and Company, Inc.
AboitizLand is one of Cebu’s key real estate developers with investments in residential, commercial and industrial developments as well as property management. It is also the developer and operator of two economic zones: the Mactan Economic Zone II in Lapu Lapu City, and the West Cebu Industrial Park in Balamban, through its subsidiary, Cebu Industrial Park Developers, Inc.
The purchase transaction is expected to be completed within the next two months upon the execution of the requisite share purchase agreement and other collateral contracts.
Prior to the acquisition of the real estate business, AEV’s portfolio included power, banking and food businesses. Of AEV’s P11.8 billion net profit in the first semester (up 16 percent year-on-year), the power business accounted for the lion’s share of profits equivalent to 79 percent while the banking and food units contributed 17 percent and 4 percent, respectively.
Aside from flagship Aboitiz Power Corp., AEV controls Union Bank, thrift bank City Savings Bank and Pilmico Foods Corp.