The Philippines - Ayala Corp To Create New Business District In Manila
August 16, 2012
The real estate developer has entered a bid of Ps 24 billion for a 74 ha government property.
Ayala Land, the real estate division of Philippines conglomerate Ayala Corp, aims to build a new business district that will become "the southern gateway to Manila".
The developer recently entered a bid of Ps 24.33 billion - the highest bid so far - for a 74 ha government property. Ayala Land's bid for the Food Terminal industrial estate was higher than those entered by two other real estate firms.
Ayala Land said that it plans to develop the site - which is located near major government highways - similarly to other up-scale projects it had developed around the Philippines. As one of the country's foremost developers, Ayala Land has developed a variety of housing, office, hotel and shopping mall projects.
Spokesman Jorge Marco said, "It's going to be another business district and it will have all our product lines: residential, retail, office and hotels."
Marketing chief for the government's privatisation office, Melinda Cortez, said that Ayala Land's bid exceeded the floor price of the property, which was set at Ps 10.2 billion, adding that this was the government's largest privatisation exercise in years.
Although Ayala Land has far exceeded the floor price, the government must embark on a 60-day period to study the bid to ensure it meets all financial and legal qualifications before it can announce the winner, said Cortez.
The Food Terminal, formerly a major government food processing facility, is now an industrial estate with operating warehouses, offices and stores. In 2009, the government of the Philippines put the property up for sale but failed to sell due to a lack of bidders.
Tags: Commercial real estate, Business space, Shop for rent