MANILA, Philippines - Ayala Land Inc. (ALI) formalized yesterday its P24.3-billion acquisition of Food Terminal Inc. (FTI) in Taguig City.
The ceremonies were witnessed by President Aquino, who called the deal proof “that the relationship between government and business is flourishing and will continue to grow.”
Malacañang hailed the deal as one of the largest in the history of government privatization and a product of the administration’s commitment to transparency and competitive bidding.
The P24.3-billion price was more than double the base price of P10.25 billion, an impressive haul for government that the Palace said would be used for funding social infrastructure projects like roads, bridges and tollways.
Under the terms of the purchase agreement, ALI said it would develop the 74-hectare FTI complex in Taguig into an integrated, mixed-use and sustainable business district featuring “high energy blocks” that will offer “excellent living and working spaces.”
According to ALI, the FTI property will have new infrastructure facilities envisioned to spur economic activity in the area and will feature “convenience-centric” retail, dining and entertainment offerings set within generous spaces and surrounded by pockets of green aimed at promoting social interaction and an active community life.
The new development, ALI said, would showcase the largest inter-modal transport system linking various types of transit options to facilitate commuting from various points.
The planned Integrated Transport System project of the Department of Transportation and Communications will be adjacent to the property and will be connected to the current Philippine National Railways station in the area, ALI said.
ALI said plans are underway for a possible bus rapid transit (BRT) system between Pasay City and Makati City, Bonifacio Global City, Ninoy Aquino International Airport and FTI.
Signing for the government were Finance Secretary Cesar Purisima, Public Works Secretary Rogelio Singson, Transportation Secretary Joseph Emilio Abaya, chief privatization officer of the Privatization and Management Office Karen Singson, FTI president Rene Fuentes and Taguig City Mayor Maria Laarni Lopez-Cayetano.
Representing ALI were its chairman Fernando Zobel de Ayala and president and chief executive officer Antonino Aquino.
In her opening remarks, PMO’s Singson said ALI’s bid was chosen over Robinsons Land (P14.7 billion) and Empire East (P11 billion) for being the highest and most comprehensive.
She said the proceeds of the sale would be used to support the Department of Agriculture’s modernization program as well as the projects of the Department of Agrarian Reform.
“We hope the re-development of the FTI complex will lead to a surge in economic activity and increase employment in the City of Taguig and the surrounding metropolitan area,” Singson said.
In a statement, Aquino through spokesman Edwin Lacierda said the privatization of the FTI property was a significant step toward developing former state-owned lands to maximize potentials for economic growth and infrastructure development.
“In this particular case, portions of the property have been set aside for the Metro Manila Integrated Transport System which aims to ease traffic congestion by connecting provincial commuters to other modes of urban transportation,” he said. “Meanwhile, a connector road has been proposed by the DPWH (Department of Public Works and Highways), which will link the C-5 road to the South Luzon Expressway through the FTI property,” Lacierda said.
“Equitable and inclusive growth is at the core of the Aquino administration’s economic model. We believe this is achievable only through a steady and mutually beneficial partnership between the public and private sectors,” he said.