MANILA, Philippines – An investment firm whose purpose is to invest in companies struggling in its finances has acquired a 142,000 square meter property development in Pampanga previously owned by a cash-strapped company of Dennis Uy.
In a press release sent on Friday, May 13, Aeropark Development Philippines Incorporated (ADPI), a special purpose entity owned by CarVal Investors, said that it acquired West Aeropark, a five-building development previously owned by Udenna Land’s Global Gateway Development Corporation (GGDC) in Clark Global City, Pampanga for an undisclosed amount.
The company added that they are the “largest and controlling investor” in the West Aeropark deal.
West Aeropark was envisioned to be a hub for business process outsourcing tenants and multinational companies in Pampanga.
CarVal Investors is an investment management company “focused on distressed and credit-intensive assets.”
“Since 1987, CarVal’s team has navigated through ever-changing credit market cycles, opportunistically investing $135 billion in 5,630 transactions across 82 countries. Today, CarVal Investors has approximately $14 billion in assets under management in corporate securities, loan portfolios, structured credit, and hard assets,” it said.
CarVal said it worked with another company called SofCap Partners, an equity investment firm based in the Philippines, where the latter would manage the West Aeropark Assets.
“CarVal/ADPI and SofCap worked closely with Udenna’s GGDC and its existing bank lenders to consummate the transaction. Proceeds from the transaction will ultimately support Udenna’s ongoing liabilities management exercise,” the company said.
“As the country moves toward post-pandemic recovery, we believe West Aeropark holds a lot of promise especially in the IT-BPO sector, which has started to rebuild its on-site footprint,” said Nimrod Wei, managing director of CarVal.
In 2018, Uy said that the Clark development would mimic the feel of urban centers like Bonifacio Global City within 10 years.
It was also envisioned to have an SM mall, a five-star hotel, a resort and casino, and a university.
Reports of Uy, a campaign donor of President Rodrigo Duterte, selling off assets has swirled for months, after his debt-driven buying spree for companies worried creditors.
A Reuters report said Uy is also considering selling the Malampaya gas field, which he acquired from Chevron and Shell for approximately $1 billion.
Buyers were also looking at Uy’s other assets, including Phoenix Petroleum and third telco Dito.
Uy’s Udenna Corporation saw total liabilities rise to P254 billion (around $4.85 billion) in 2020 from P171 billion in 2019. – Rappler.com