ABS-CBN to sell a portion of land property to Ayala Land

MANILA, Philippines — A portion of ABS-CBN Corp.'s land in Quezon City will be sold to Ayala Land Inc., the media network announced.

In a disclosure dated February 27, ABS-CBN said it signed a memorandum of agreement with Ayala Land for the sale of its property in Quezon City, amounting to P6.2 billion.

According to the disclosure, the sale covers 30,000 square meters out of the total 44,027.30 square meters of the property.

“The property houses several buildings including production facilities. The company’s offices and studios will be consolidated in the remaining 1.4 hectares of the property to be retained by the company,” ABS-CBN's disclosure read. 

The Lopez-owned media firm also said that it plans to consolidate its operations within the remaining 1.4 hectares of its Quezon City property. 

They noted that the funds generated from the property sale will be allocated towards partially settling their existing bank loans.

Under the memorandum of agreement, the payment to ABS-CBN shall be on an installment basis, which will be payable for 10 years. 

“Downpayment shall be placed in an escrow account to be released to ABS-CBN upon completion of certain conditions precedent and signing of the Deed of Absolute sale. The balance shall be payable in installment over ten (10) years,” the disclosure read. 

ABS-CBN also stated that the agreement's completion shall be “subject to certain conditions precedent” and may require authorization from the Philippine Competition Commission.