In a significant real estate transaction, Ayala Land Inc. (ALI) has acquired Aboitiz Group’s 50% stake in Cebu District Property Enterprise Inc. (CDPEI) for PHP 1.81 billion. This acquisition enhances ALI’s presence in Cebu and underscores its strategic expansion.
Key Details of the Acquisition
- Transaction Value: PHP 1.81 billion
- Stake Acquired: 50% of CDPEI from AboitizLand
- Project Involved: South Coast City, a 26-hectare mixed-use development in Cebu South Road Properties.
Strategic Benefits for Ayala Land
This acquisition allows ALI to fully control the South Coast City project, facilitating streamlined development and integration with ALI’s other projects. The project is set to become a major hub for business, retail, residential, and entertainment activities in Cebu.
Aboitiz Group’s Strategic Refocus
The Aboitiz Group’s divestment aligns with its strategy to concentrate on core businesses such as infrastructure, power, and banking. By selling its stake in CDPEI, Aboitiz can reallocate resources to other high-growth areas.
Future Prospects
With ALI at the helm, South Coast City is expected to accelerate its development, benefiting from ALI’s expertise in creating sustainable urban spaces. This move is anticipated to attract more investors and residents, boosting economic growth in Cebu.
Conclusion
Ayala Land’s acquisition of the Aboitiz Group’s stake in the Cebu joint venture marks a pivotal step in its expansion strategy. This deal not only strengthens ALI’s foothold in Cebu but also aligns with Aboitiz’s focus on its core sectors. The development of South Coast City under ALI’s leadership is poised to bring significant economic benefits to the region.
