SM, ALI to join forces with 2 Ortigas blocs

MANILA, Philippines - If you can’t beat them, join them.

The heated rivalry between the SM Group and Ayala Land Inc. over control of the Ortigas family’s holding firm has finally reached its conclusion as both groups decided it’s time to end the fight and team up instead.

In what seems to be a perfect ending to a feud that lasted more than two years, SM Prime Holdings Inc. and ALI announced they have come up with an agreement with their respective faction in the Ortigas clan.

“SM Prime Holdings Inc., Ayala Land Inc., the Francisco Ortigas Group and the Rafael Ortigas Group, have signed an agreement to cause the termination of all cases relating to the ownership and management of OCLP Holdings Inc., which owns Ortigas and Co. Ltd. Partnership,” SM Prime and ALI said in separate disclosures to the local bourse.

“SM Prime and ALI will enter into partnership with the Francisco Ortigas Group and the Rafael Ortigas Group. This strategic alliance will further enhance the properties in the Ortigas area, and create maximum value for their various stakeholders,” the disclosures said.

The tug of war for control of OCLP holdings heated up in the past couple of years as both SM and ALI refused to back down, capitalizing on the deep differences within the landed Ortigas family members.

The Ayalas have struck a strategic alliance with the Rafael Ortigas Group while the Sy family, on the other hand, has found an ally in the Fernando Ortigas Group.

The Rafael Ortigas bloc currently controls about 47 percent of OCLP Holdings while the group of Fernando Ortigas has about 37 percent.

In an interview, ALI president and chief executive officer Bernard Vincent Dy explained that both ALI and SM bagged equal equity ownership in OCLP Holdings.

For the Rafael Ortigas bloc, Dy said ALI would have two board seats while SM, for their part, would have two board seats in the Fernando Ortigas faction.

Dy said ALI chief finance officer Jaime Ysmael and ALI commercial business group head Jose Jalandoni would represent ALI in the OCLP board.

“What is important now is that all the four groups have cooperated to move the company forward. Now, we decided to come together and work together,” Dy said.

“Both parties (SM and ALI) share the same goal and that is basically grow the company. We have a common objective and together that what’s we’re trying to achieve so it’s a very positive development,” he added.

Ortigas & Co. currently owns strategic land bank areas in the Ortigas Business District, Greenhills Shopping Center, Tiendesitas in Frontera Verde, Circulo Verde and Capitol Commons.

The Ortigas district, which encompasses at least 100 hectares, is home to many shopping malls like Robinsons Galleria, Shangri-La, Megamall, Podium and St. Francis Square.

The Ortigases, whose historic roots date back to the 300-year Spanish colonial rule, are among the largest landowners in the country and most notably known as the developer of the Greenhills Shopping Center.