Two Cebu-based companies may now take part in the joint venture between Ayala Land Inc. (ALI) and AboitizLand Inc. after ALI assigned up to 15-percent stake of its part in the JV to Cebu Holdings Inc. (CHI) and Cebu Property Ventures and Development Corp. (CPVDC).
Earlier this week, property giant ALI and AboitizLand signed a 50-50 joint venture agreement to develop parcels of land in Cebu, including the 15-hectare parcel in Mandaue City, Cebu, which is targeted for launch next year.
The joint venture will allow ALI to expand its geographical footprint in Cebu, while AboitizLand expects the development to add to its diverse portfolio of integrated residential communities, commercial pockets, and industrial parks in the province of Cebu.
A disclosure to the Philippine Stock Exchange on Thursday showed that ALI has assigned to affiliates CHI and CPVDC the right to subscribe to 10 percent and 5 percent, respectively, of the authorized capital stock of the joint venture company that will be established pursuant to its Cebu deal with AboitizLand.
”This undertaking will allow the company to benefit from the local knowledge and expertise of CHI and CPVDC, leading to better efficiencies and possible synergies that will maximize opportunities in the Cebu property market,” ALI further told the local bourse.
ALI said that it plans to retain its remaining 35 percent stake in the joint venture company.