MANILA, Philippines - Property giant Ayala Land, Inc. has formed a new subsidiary to handle its hotel and resort business, documents showed.
The Securities and Exchange Commission approved the articles of incorporation of Ayala Hotels and Resort Corp. last Sept. 21. The firm has authorized capital of P1.175 billion divided into 235 million shares.
The corporate regulator allowed the firm “to acquire and own, hold, use, sell, assign, manage, deal, transfer or otherwise dispose of real and personal property ... and engage in the general business of a hotel, apartment hotel, inn, resort, restaurant, café, bar, entertainment and other allied business.”
It can also acquire land and buildings, and undertake necessary improvements.
Ayala Land first ventured into the resort and leisure segment in 2007, with the P4-billion development of the 320-hectare Anvaya Cove in Bataan. It was followed by the 46-hectare Amara development in the municipality of Liloan in Cebu.
Last year, Ayala Land signed a deal with the government to develop a 7.5-hectare lot within the Subic Bay Freeport Zone. The firm is also in a joint venture to develop parts of the El Nido Resort in Palawan.
The 50-year lease agreement with the Subic Bay Metropolitan Authority will involve the development of a property on Rizal Highway or between the two main gates linking the free port zone to Olongapo City.
Ayala Land will invest P3 billion for the development of hotels, retail spaces, and business process outsourcing offices. Some 10,000 jobs will be generated by the venture.
Ayala Land subscribed to P1.17 billion in shares of the new unit.
Shareholders Antonino T. Aquino, Jose Emmanuel H. Jalandoni, Emilio J. Tumbocon, Michael Alexis C. Legaspi and Ma. Luisa D. Chiong paid P1 each.
Shares in Ayala Land, whose profits jumped by 34% to P2.51 billion in the first half, shed 1.85% or P0.32 to close at P17.30 apiece yesterday.