MANILA, Philippines - Two of the top property and landholding firms in Cebu have partnered for various real estate projects in the Queen City of the South.
In a disclosure, Ayala Land Inc. (ALI) said it agreed in principle with AboitizLand Inc. to enter into a 50-50 joint venture for the development of properties in Cebu.
“This joint venture will generate synergies by combining the local knowledge and experience of AboitizLand in developing diverse real estate products in Cebu with ALI’s expertise in building a full range of real estate formats including large scale, integrated, mixed-use communities,†ALI said.
ALI president and CEO Antonino Aquino said the deal will bring the benefits of a well-established and strong partner in Cebu.
“This is consistent with our growth strategy of establishing more developments in the major urban areas of the country, Cebu being one of the most progressive metropolitan areas in the Philippines,†Aquino said.
ALI’s projects in Cebu include the Cebu Marriott and Ayala Center Cebu.
For AboitizLand president and CEO Andoni Aboitiz, the joint venture is in line with the company’s vision of “creating long term value for the Cebu community†amid an increasingly competitive environment.
It is not the first partnership between the Aboitiz and Ayala conglomerates. Holding firms Ayala Corp. and Aboitiz Equity Ventures Inc. joined forces for the bidding of the P17.5-billion Mactan-Cebu International Airport under the government’s Public-Private Partnership (PPP) program.
The Aboitiz conglomerate, which is primarily into power production, is pursuing several commercial and residential property projects in Cebu.
ALI, for its part, allotted P65.5 billion in capital expenditures this year as it plans to launch 69 new projects worth P129 billion to ensure continuous growth in the coming years.