MANILA (3rd UPDATE) – Ayala Land Inc., SM Prime Holdings Inc., the Francisco Ortigas Group (FOG) and the Rafael Ortigas Group (ROG) have signed an agreement to end the dispute involving the ownership and management of OCLP Holdings, Inc. (OHI).
OHI owns Ortigas and Company Limited Partnership (OCLP), the firm behind residential, business and commercial developments including the Greenhills Shopping Center, Tiendesitas, and Capitol Commons.
Ayala Land and SM Prime will each acquire about a quarter of OHI, according to a stock exchange filing. OCLP owns 55 hectares of prime real estate in the capital.
Ayala Land and SM will each gain two seats on OCLP's nine-member board. Existing shareholder groups like the Roman Catholic church and the Ortigas family will retain the remaining five board seats.
Under the agreement, Ayala Land and SM Prime will form a partnership with FOG and ROG to boost development in the Ortigas area.
"The four groups will work together in OCLP Holdings to move the business forward," Ayala Land President Bobby Dy said.
Jeffrey Lim, executive vice president of SM Prime Holdings, said, "SMPHI looks forward to a mutually beneficial partnership with the Ortigas family and Ayala Land."
In separate statements by Ayala Land and SM Prime, the rival property firms said the deal “establishes a partnership that will further enhance the properties in the Ortigas area, and create maximum value for their various stakeholders.”
Both Ayala Land and SM Prime were approached by rival factions of the Ortigas family soon after HSBC divested its 34 percent stake in OCLP unit Ortigas & Co in 2012.
But the two property firms' planned investments were blocked by some Ortigas family members via court cases.
Those cases have now been dropped with the signing of the investment agreement announced on Friday. -- With Reuters