AYALA LAND, Inc. (ALI) tightens its grip on AyalaLand Logistics Holdings Corp. (ALLHC), formerly called Prime Orion Philippines, Inc., in exchange for a parcel of land in Muntinlupa.
In a disclosure to the stock exchange Monday, the listed property giant said its wholly owned subsidiary Avida Land Corp. has acquired 264.53 million shares in ALLHC held by Orion Land, Inc. (OLI). The latter will give a parcel of land in South Park District, Muntinlupa City to Avida Land as payment.
After this, Avida Land will sell the shares in ALLHC to ALI, thereby increasing its ownership in the industrial park developer to 72.25%, from its 63.9% stake as of March 2018.
To prepare for the sale of shares to Avida Land, ALLHC said in a separate disclosure that its executive committee has approved the issuance of 49.44 million new shares to OLI at P2.92 each, for a total of P144.38 million.
Avida Land is ALI’s brand that caters to the middle income market, developing mostly high-rise residential condominiums in Metro Manila.
ALLHC secured approval from the Securities and Exchange Commission to change its corporate name earlier this month, in line with its shift to become the real estate logistics and industrial estate business of ALI.
ALI initially acquired a 51.36% stake in the Tutuban Center operator in 2015, and has gradually been increasing its shareholdings since.
Its latest acquisitions include a majority stake in Laguna Technopark, Inc., which manages the 460-hectare Laguna Technopark in Sta. Rosa, Laguna and the 135-hectare Cavite Technopark in Naic, Cavite.
The company has also started developing logistics and warehousing facilities starting with a project in Laguna Technopark, which is set to offer more than 60,000 square meters (sq.m.) in leasable area. The facility is due for completion by October 2020, but the company will start leasing out portions to non-PEZA locators starting May.
It also has two industrial parks in the pipeline, the first of which is located in Cagayan de Oro near the Laguindingan airport. ALLHC will offer 42 parcels of land with cuts of 7,000 sq.m. each. The second industrial park will be developed in Central Luzon.
ALLHC’s net income attributable to the parent soared by 1,366% to P113.57 million in the first quarter of 2019, from just P7.74 million in the same period a year ago. This came after a 454% uptick in gross revenues to P985.4 million.
Shares in ALLHC jumped 3.05% or 10 centavos to close at P3.38 each at the stock exchange on Monday. — Arra B. Francia
