MANILA, Philippines - Property developer Alphaland Corp.’s plan to transfer its stake in an upscale, mixed-use project in Parañaque to a London-based private equity fund is being questioned by local partner Wenceslao Group.
In a statement, local construction firm D.M. Wenceslao said Alphaland cannot unload its shares in Alphaland Bay City (ABC) project unless the Wenceslao Group is allowed to exercise or waive its right of first refusal.
“We need to look at the terms first between Alphaland and Ashmore Group before we can decide whether to exercise or waive our right of first refusal, or invoke the tag along,” D.M. Wenceslao said.
The local contractor said it formally asked Alphaland Development Inc. to honor its contractual obligations in the joint venture project.
Specifically, D.M. Wenceslao said it has a tag-along right, allowing it to sell its shares in joint venture company ABC on the same terms Alphaland is transferring its shares to Ashmore Group.
The Wenceslao Group said it was not asked first whether it would exercise or waive its right of first refusal.
Early this month, Alphaland said it is ending its dispute with erstwhile partner and London-based private equity fund Ashmore Investment Management Ltd. by unloading several assets in favor of Ashmore.
Included in the asset disposal is Alphaland’s shares in ABC, the joint venture company formed by Alphaland and the Wenceslao Group to develop the 32-hectare Alphaland Bay City project at the Aseana Business Park in Parañaque. Aseana Business Park is sandwiched between the PAGCOR Entertainment City and SM Mall of Asia.
Alphaland contributed 10 hectares that is landlocked while the Wenceslao Group contributed 22 hectares, including the critical property that has access to the sea, giving the local construction group a 67-percent stake in ABC.
The rift between Ongpin and the Wenceslao Group erupted after the former mortgaged 10 hectares of his property, which form part of a P2-billion marina project, without the latter’s knowledge.
Alphaland, which is into high-end leisure developments catering to the affluent, is a joint venture between London-based private equity fund Ashmore Group and RVO Capital Ventures of former Trade Minister Roberto V. Ongpin.
The board of Ashmore Group, which is looking to exit the local property business, reportedly did not agree to some corporate actions of Alphaland. The private equity firm earlier sought for Ongpin to leave the listed property company.