Ayala, Wellex drop Plastic City venture

MANILA, Philippines — Ayala Land Inc. (ALI) subsidiary Avida Land Corp. and its joint venture partners have decided to cancel the proposed development of the 21-hectare property known as Plastic City in Valenzuela.

ALI, in a disclosure to the Philippine Stock Exchange, said Avida, Philippine Estates Corp. (PHES) and subsidiaries of Wellex Industries Inc. have mutually agreed to terminate the memorandum of agreement executed by the parties in December 2012 for Plastic City.

“PHES and subsidiaries of Wellex have decided to reevaluate its concept and feasibility studies on the property while Avida will focus on its ongoing and other planned projects,” ALI said.

ALI and the Gatchalian family, owner of Wellex, finalized in 2012 a deal to develop the latter’s former plastics manufacturing hub in Valenzuela City.

It was envisioned to be redeveloped into a mixed-use urban complex in northern Metro Manila.

Last year, the project made significant development following the termination of the rehabilitation case of Wellex Industries’ subsidiaries and the settlement of loans with Lucio Tan-owned Philippine National Bank.

The termination of the rehabilitation court case was expected to allow the concerned subsidiaries of Wellex to continue with the MOA with Avida Land.

Avida Land is the mid-range residential development arm of property giant ALI.

ALI grew its net income  by 12 percent in January to September to P23.2 billion.

It has launched P37.8 billion worth of residential projects in the third quarter alone, bringing total launches for the nine-month period to P57.3 billion.