ABS-CBN nears property transfer to ALI

MANILA, Philippines — Media giant ABS-CBN Corp. has received regulatory approval to change its address to a smaller property ahead of the scheduled transfer of its former headquarters to the Ayala Group.

ABS-CBN yesterday said the Securities and Exchange Commission (SEC) has approved its amendment to the third article of its Articles of Incorporation.

The SEC authorized ABS-CBN to proceed with the relocation of its principal address to Eugenio Lopez Jr. (ELJ) Communications Center.

ABS-CBN is consolidating operations to the remaining 1.4-hectare side of its property in Quezon City as part of its land sale with Ayala Land Inc. (ALI). By July the company must have moved to ELJ Communications Center in compliance with its agreement with ALI.

Last year, the Lopez and Zobel clans signed the deeds of absolute sale for the transfer of a larger part of ABS-CBN’s property in Quezon City to ALI. The transaction involves ALI’s acquisition of 30,000 square meters of ABS-CBN’s 44,027.3-sqm property in Quezon City.

The deal includes the landmark headquarters of ABS-CBN in Mother Ignacia Avenue, iconic for its colossal transmitter used by the company when it was still airing on free TV.

The main building, including the transmitter assets, will be handed over to ALI before the end of this year.

ABS-CBN is using proceeds from the sale, worth P6.24 billion, to pay maturing loans, as it tries to fight its way back to profitability this year as promised to shareholders.

ALI is looking at the ABS-CBN property as an opportunity to build a mixed-use development in a district surrounded by business spaces, government offices and leisure establishments. Further, the property is encircled by residential units and its area is close to major roads.

ABS-CBN can afford to dispose of its headquarters because it no longer depends on free TV. The former broadcasting leader leans on digital channels and foreign partners to air its materials.

To date, ABS-CBN has sold more than 50,000 hours of content to about 50 countries globally, as it also built up its YouTube channel to nearly 55 million subscribers.

The company is trying to climb back to profit this year as committed by the management, but it is still at a net loss of P813 million as of March.