Ayala Land raises stake in Malaysia’s MCT Bhd

MANILA, Philippines – Ayala Land Inc. (ALI) said Friday, October 16 it has increased its stake in Malaysian development and construction firm MCT Bhd.

From the current 9.16%, ALI hiked its stake to 32.95% for $92 million.

In a disclosure to the stock exchange Friday, Ayala Land Senior Vice President and Chief Finance Officer Jaime Ysmael said the company, through its wholly-owned subsidiary, Regent Wise Investments Limited, exercised its option to acquire additional shares in MCT.

“This transaction affirms ALI’s confidence in MCT’s solid track record in project execution and business strategy,” the property firm said.

Established in 1999 as a construction company, MCT Bhd is a property development company specializing in mixed-use projects that include retail, office, hotel and mid- to affordable residential units.

MCT Bhd is listed under the main market of Bursa Malaysia, has several ongoing projects in One City Subang Jaya and Cyberjaya, as well as a land bank in Dengkil, 1.5 kilometers away south of Cyberjaya, all located in the Klang Valley in Malaysia.

ALI said that MCT is poised to deliver its pipeline of integrated, mixed-use projects in Subang Jaya, Cyberjaya, and Dengkil in Klang Valley, Malaysia which aims to capture the demand from the middle income and affordable market segments. 

Ysmael earlier said Ayala Land it was considering Sukuk financing to fund its investments in Malaysia. Sukuk is an Islamic financial certificate, which is similar to a bond, that complies with Sharia, the Islamic religious law.

ALI acquired in April this year a 9.16% interest in MCT Bhd through a private placement amounting to $43 million (P1.9 billion). (READ: Ayala Land marks first venture in ASEAN region)

Then in May, ALI, through its wholly owned subsidiary Regent Wise Investments Limited entered into call option agreements with the two founders and majority shareholders of the Malaysian firm, that will enable the property firm to increase its stake in MCT to 32.95%. The call options were exercisable for one month beginning on October 7 this year. (READ: Ayala Land hikes stake in Malaysian firm).

ALI earlier said the investment in MCT Bhd will allow it to enter the Malaysian market with an experienced team, benefit from synergies of the partnership, and further add value to MCT over the long term to enable it to become a key player in the Malaysian real estate market.

Apart from Malaysia, ALI is also looking at investment opportunities in Vietnam, Indonesia, and Myanmar. – Rappler.com