AYALA Land Inc. (ALI) has aborted its two-year planned acquisition of a 400-hectare Ternate, Cavite land within Boulevard Holdings Inc.’s (BHI) 3,000-hectare Puerto Azul resort development.
In a letter to the Philippine Stock Exchange, BHI Chairman and CEO Jose Marcel Panlilio said that ALI sent them letters on Tuesday canceling the purchase of the P2.3-billion Puerto Azul lot, citing multiple reasons for the cancellation.
“ALI had held P2 billion to P3 billion in funds for a while in spite of delays [but]we were told to read the papers about a P75 billion funding that ALI was raising,” Panlilio said.
The P75 billion fund he cited was for ALI’s 1,100-hectare masterplan development in Porac, Pampanga that needs an initial P8 billion for Phase 1 or the first three to five years of its development.
Panlilio said BHI received the letters Tuesday evening last week, and BHI immediately sent a letter of appeal addressing profit concerns a day after, but got a negative response from ALI on Thursday evening, citing that “ALI needed all the money for the P75 billion Porac project.”
Panlilio said that ALI also noted that some 19 hectares within the 400-hectare land consist of “steep” areas that are not viable for development.
The 19-hectare land inside Puerto Azul is the only lot “owned by a third party besides GSIS,” which prompted ALI to go directly to the third party.
“Since the [19-hectare Puerto Azul] left ridge can’t be secured within a timeline, it was decided [that ALI would]not buy; it was decided that capital will be deployed elsewhere,” Panlilio said.
The BHI chairman and CEO said that the company will consider turning to “deferred” partners, and “take more inputs from our professional realty advisors for the land assets.”
Earlier, the company said the development of Friday’s Puerto Galera hotel resort is at a standstill, being 65-percent done, because completion of the project hinges on the P2.3-billion funding from ALI’s acquisition of the 400-hectare Puerto Azul land.