ALI says it was 'invited' by Ortigas group
MANILA, Philippines - Ayala Land Inc. may invest P15 billion in the parent company of Ortigas & Company Limited Partnership, as it seeks to form a strategic alliance with the Ortigas group. This comes after the Ortigas family blocked the SM Group's attempt to buy a stake in its property firm.
In a disclosure to the stock exchange on Friday, ALI chief finance officer Jaime Ysmael said its executive committee has authorized negotiations to enter into a strategic alliance with the group led by Ignacio R. Ortigas.
"This opportunity comes with the invitation of the group of Mr. Ortigas and is in line with the company's expansion plan," the property developer said.
The move would allow ALI to partcipate in OCLP Holdings, parent of Ortigas & Co., and develop its various properties and businesses in the Pasig and Mandaluyong areas.
Ayala Land is also allocating an initial amount of P15 billion as investment in OCLP.
ALI said the strategic alliance with the Ortigas group is "expected to generate significant synergies with the other projects of the company in nearby communities, such as the integrated mixed-use projects in Pasig and Mandaluyong areas, as well as Bonifacio Global City and Makati CBD."
The company said it will contribute its expertise in developing large scale, mixed-use developments to its partnership with Ortigas.
The Ayala-Ortigas partnership is seen as a blow to the SM Group, who had offered to buy Hong Kong Shanghai Banking Corp.'s (HSBC) 34% stake in the property firm for P11 billion.
The Ortigas group has vast properties in Mandaluyong, San Juan and Quezon City. It owns the 16-hectare Greenhills shopping center, where V-Mall houses 5 SM franchises namely Toy Kingdom chain, SM Appliance Center, Our Home, Watsons, and Ace Hardware.