ALI studies options for Manila Pen property

MANILA, Philippines — Ayala Land Inc. (ALI), the property development unit of the Ayala Group, will study its options for  The Manila Peninsula hotel property in Makati.

In an interview with The STAR, ALI president Bernard Vincent Dy said the  Manila Pen site is  a prime property that will need thorough planning.

“There are no plans yet for the Peninsula property given that the existing lease will expire only in 2030. It is one of the most prime properties in Makati Central Business District and will provide us with options at that time,” Dy said.

“Eight years is a long time so we will see what demand is at the time,” he said.

Options may include continuing the lease with The Manila Peninsula, redeveloping the property into a prime residential development, an office tower or a commercial district.

The property will soon be owned by ALI after Ayala Corp., the country’s oldest conglomerate,  and Mermac Inc., the holding company of the Zobel family, agreed to transfer five of their prime property developments  to ALI, in exchange for shares in the property giant.

Fernando Zobel de Ayala, AC president and CEO and ALI chairman, said ALI is in the best position to unlock the full potential of the property assets.

“We view ALI as the natural owner of these properties and it is in the best position to optimize their value. In addition, this deal is consistent with Ayala’s initiative to increase its ownership of ALI, similar to the block purchases of ALI shares we have done over the past year,” Zobel said in an earlier disclosure.

In exchange for its properties with a total value of P17.3 billion, AC will subscribe to 309.6 million primary common shares while Mermac will subscribe to two million primary common shares for its assets worth P110.6 million for  311.6 million primary common shares valued at  P55.80 per share.

AC has a 46.07 percent share in ALI. Once approved by regulatory bodies, AC’s ownership in ALI will increase to 47.2 percent.