ALI acquires Makati property firm via P588-M share-swap deal

Property giant Ayala Land Inc. (ALI) has entered into a property-for-share swap with Crans Montana Property Holdings Corp. in a deal valued at P587.6 million.

In a disclosure to the Philippine Stock Exchange, ALI said it acquired 11.75 million shares in Crans Montana the registered owner of several properties along Sen. Gil Puyat Avenue and Malugay St. in Makati in exchange for the transfer to Mercator Securities Corp. of its 11.04 million shares in Oxbury Realty Corp.

Oxbury is a real estate development firm formed by ALI early this year to engage in the business of leasing a 4,601-square meter property along Makati Ave.

ALI has a well-diversified development and investment property portfolio consisting of retail centers, office and residential buildings, hotels, single and multi-family homes, and industrial estates.

It earlier approved the issuance of P500 million worth of three-year exchangeable bonds through a public offering to fund operations. BPI Capital Corp. was tapped as issue manager and underwriter for the planned bond issue.

ALI, which builds upscale malls, high-rise offices and residential developments, continues to pursue growth opportunities including new products and projects in new geographic areas and markets. When completed, these projects are expected to significantly augment the company’s recurring revenue stream.

Among these new projects include the development of the 200,000-square meter North Triangle Commercial Center slated for completion by mid-2007; the expansion of Market! Market!; the Anvaya Cove in Morong, Bataan, a residential and beach resort community; and new residential subdivision to cater to the middle-income market.

ALI’s business process outsourcing offices PeopleSupport Center and Convergys will be operational within the year.

The company will also start development of its first real estate venture in Sta. Cruz, Manila in partnership with the Manila Jockey Club Inc.