LISTED property developer Ayala Land, Inc. (ALI) has raised P13.5 billion from the sale of its 50% stake in Alabang Town Center in Muntinlupa City, a move aimedLISTED property developer Ayala Land, Inc. (ALI) has raised P13.5 billion from the sale of its 50% stake in Alabang Town Center in Muntinlupa City, a move aimed

ALI raises P13.5B from Alabang Town Center stake sale

By Beatriz Marie D. Cruz, Reporter

LISTED property developer Ayala Land, Inc. (ALI) has raised P13.5 billion from the sale of its 50% stake in Alabang Town Center in Muntinlupa City, a move aimed at funding future commercial and retail expansions.

In a stock exchange disclosure on Tuesday, ALI said it sold its interest in Alabang Commercial Center Corp. (ACC), the entity that owns and operates Alabang Town Center, to its joint venture partner, the Madrigal family.

“We are monetizing a legacy asset at peak valuation to accelerate the rollout of our expansive pipeline of commercial and retail spaces, which will define the Ayala brand of development for the next decade,” ALI President and Chief Executive Officer Anna Ma. Margarita “Meean” B. Dy said.

Proceeds from the transaction will support the company’s leasing growth plans, which include the addition of about 700,000 square meters of new gross leasable area over the next five years.

ALI currently has more than 53 estates nationwide, many of which are undergoing expansion. Ongoing developments include Evo City in Cavite, Gatewalk Central in Cebu, and Ascenda in Davao City.

“The sale strengthens ALI’s balance sheet and provides funding flexibility for its expanding pipeline of retail and commercial projects as the company shifts toward a more leasing-driven growth strategy,” AP Securities, Inc. Equity Research Analyst Shawn Ray R. Atienza said in a Viber message.

China Bank Capital Corp. Managing Director Juan Paolo E. Colet said the transaction is unlikely to affect retail demand at Alabang Town Center, given its established market position.

“This was an opportunistic deal that allowed Ayala Land to exit the joint venture at an attractive valuation. The company can readily redeploy the proceeds into its broader growth pipeline,” he said in a separate message.

The partnership between Ayala Land and the Madrigal family dates back to the 1960s, when the two groups jointly developed a 661-hectare property in Muntinlupa City from a former mango plantation into a major commercial and residential hub.

Today, the area encompasses Alabang Town Center, Ayala Alabang, and Madrigal Business Park.

ALI earlier reported a 0.9% year-on-year increase in nine-month attributable net income to P21.4 billion.

At the stock exchange on Tuesday, shares of Ayala Land rose by 0.67% or 15 centavos to close at P22.70 apiece.

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