MANILA, Philippines – Aboitiz Land, Inc. (AboitizLand), the real estate arm of the Aboitiz business group, will acquire a 60% stake in Lima Land, the operator of an industrial park in Batangas, south of Manila.
In a disclosure on Friday, October 4, the family’s holding firm Aboitiz Equity Ventures Inc. said it has signed a share purchase agreement with Alsons Land Corp. for the P1.36-billion deal.
At stake is the 468-hectare Lima Technology Center, an industrial zone registered with the Philippine Economic Zone Authority (Peza). Lima Land operates the park and owns 60% while Marubeni Corporation of Japan owns the remaining 40%.
This marks a venture between the Aboitiz family whose empire is largely based in the Visayas and the Alcantara group who, through Alsons, has business activities based mostly in Mindanao.
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The deal includes the purchase of Lima Land’s interests in its wholly-owned subsidiaries, Lima Utilities Corp. and Lima Water Corp. Both utility firms supply the basic needs the locators of the industrial park need.
Once the buyout is executed — not later than 30 days after the agreement is signed — the Aboitiz group will have 3 industrial parks in its portfolio.
The following economic zones are currently operated by Aboitiz Land:
- Mactan Economic Zone II in Barangay Mactan, Lapu Lapu City
- West Cebu Industrial Park in Balamban, Cebu (through subsidiary, Cebu Industrial Park Developers, Inc.)
Banking on the renewed interest of foreign investors in the country, the Aboitiz group earlier expressed plans to expand its industrial estate business and is looking for opportunities in this sector.
Through AboitizLand, the group is beefing up its residential and commercial businesses by expanding its presence in areas outside Cebu.
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“As most developers come to Cebu for its booming real estate industry, AboitizLand will strengthen its position in Cebu while looking for opportunities in other geographical areas,” AEV said.
In early 2013, AboitizLand formed a 50:50 joint venture partnership with property giant Ayala Land Inc for the development of properties in Cebu.
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The Aboitiz group is the country’s biggest power producer in terms of capacity.
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The group also has business interests in banking and food production. It used to own the country’s biggest shipping group.
It is currently diversifying to include infrastructure and utilities in its portfolio.
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It is vying for the privatization of the Mactan-Cebu International expansion project under the government’s Public-Private Participation scheme.
It is bidding for the P17.5-billion Cebu airport project via a partnership with the Ayala group. – Rappler.com
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