Aboitiz unit offers to acquire Batangas biz park developer

MANILA, Philippines - The property arm of conglomerate Aboitiz Equity Ventures Inc. (AEV) is planning to buy a majority stake in a Batangas business park, expanding its reach outside the Visayas region.

“AboitizLand Inc. has offered to purchase 60 percent of Lima Land Inc.,” AEV said in a disclosure to the stock exchange.

“The offer to purchase is subject to the requisite due diligence review and the completion of a definitive share purchase agreement,” it added.

Lima Land is a joint venture between Marubeni Corp. of Japan and Alsons Land Corp. of the Alcantara Group. It is the company behind Lima Technology Center, a 485-hectare business park located in Lipa and Malvar towns in Batangas province.

AboitizLand Inc. aims to be a major income contributor to the Aboitiz conglomerate, which is predominantly into power generation and distribution.

The Cebu-based property firm will launch three new projects and continue working on five existing projects this year.

AboitizLand committed to spend more than P1 billion this year for of various projects.

In April, it partnered with property giant Ayala Land Inc. for a new mixed-use development in Cebu.

In the first quarter, AboitizLand contributed P43.1 million to AEV’s income as the property firm’s revenues hit P258 million. AEV’s Consolidated net income hit P6.8 billion in the first three months, up 17 percent from a year ago.

Last year, AEV purchased 100 percent of AboitizLand from Aboitiz & Co., for P3.2 billion.

“AboitizLand has an inventory of existing and potential projects, as well as access to a landbank that will ensure the continuity of development projects. It also has strong recurring income from its industrial estates,” AEV said.

In 2012, AboitizLand posted record residential sales of P1.3 billion, up more than 50 percent from a year ago.

In its 20-year history, AboitizLand has been in the industrial segment as the company behind the Mactan Economic Zone II in Lapu-lapu City and the West Cebu Industrial Park.

In the commercial segment, AboitizLand has put up IMEZ, a modern multi-use facility and self-sufficient commercial hub suitable for business process outsourcing and retail stores; The Persimon Plus, a commercial area that offers dining, retail and entertainment concepts; and Pueblo Verde, a clustered town center with dining, retail, service facilities and modern office space.