Ayala Land sells parts of FTI
MANILA, Philippines - Real estate developer Ayala Land Inc. has confirmed it has sold parts of the 74-hectare Food Terminal Inc. (FTI) property in Taguig City that it acquired in a government auction in 2012.
“Instead of borrowing from the banks to set up infrastructure for the 74 hectare proper in Paranaque city bought from the state-owned Food Terminal Inc, Ayala Land will sell a portion of that prime property,” Ayala Land in a statement released to the Security and Exchanges Commission on Monday, February 18.
The FTI property in Taguig is among Ayala Land's ongoing multi-billion-peso development projects, including The Circuit in Makati, Bonifacio Global City (BGC), Vertis North in Quezon City, and Cebu Park District.
Ayala Land acquired FTI for about P24 billion or roughly P36,000 per square meter in a government bidding.
Several buyers are said to be willing to pay as much as P150,000 per square meter or about 5 times the acquisition price.
Average size of the lots sold ranged from 2,500 sqm to 10,000 sqm, but Ayala Land did not identify or provide additional details about the buyers.
Commitments have been made to buyers but official documentation cannot be prepared until Ayala Land gets authority to sell from the government.
Ayala Land bested two other groups vying for the property, one of the last remaining large parcels of land in Metro Manila that is ready for immediate development and one of the government's last available assets for sale.
Ayala Land had said it will transform FTI, one of the largest property complexes in Metro Manila, into another business district and bring all its product lines -- commercial, residential -- into the development.
The FTI agro-industrial complex currenlty houses over 300 lessor-companies, most of them have industrial buildings with standard-sized stalls for office, warehouse or small-scale processing operations.
Only 74 of the complex's total 103 hectares has been auctioned off. The remaining 29 hectares will be allocated for other purposes including a 5-hectare integrated bus terminal, which the Department of Transportation and Communication (DOTC) and the Department of Public Works and Highways (DPWH) are overseeing.
The government also expects economic activities in Taguig City and nearby areas to flourish as employment increases and transport linkages in the complex improves.
In the same statement, Ayala Land said it expects double digit growth in 2013 as growth trajectory shows the property arm of the Ayala conglomerate easily breeching the P10 billion profit mark from the record P9.04 billion earned in 2012. - Rappler.com