Philippines: Ayala Land unit acquires real estate firm URDC for $47m

A visual of one of Ayala Land's township projects.

AyalaLand Logistics Holdings Corp, the logistics subsidiary of listed property developer Ayala Land Inc, has acquired another developer in the country for 2.39 billion Philippine pesos ($47 million).

In a disclosure to the Philippine Stock Exchange, AyalaLand Logistics said it has acquired 100 per cent of real estate firm Unity Realy & Development Corporation (URDC), which owns about 192 hectares of property in Mabalacat City, Pampanga.

The property will be used for the development of a new industrial park by AyalaLand Logistics, the firm said. URDC will become a wholly-owned subsidiary of AyalaLand Logistics after the deal is completed.

“The transaction further strengthens the vision of AyalaLand Logistics to be the leading real-estate logistics and industrial-estate developer in the Philippines,” it said in its disclosure.

URDC’s 2018 audited financial statement shows that it has 612,445 shares worth 30.62 million pesos ($600,000). The company reported a net loss of 313,153 pesos in 2018, higher than a 12,500-peso loss in the previous year. It had no revenues to be recognized in both reporting periods.

AyalaLand Logistics was earlier known as Prime Orion Philippines Inc. After parent Ayala Land acquired the owner of the Tutuban complex in Divisoria, Manila, it consolidated its other logistics and industrial park assets into one entity.

Ayala Land has mandated AyalaLand Logistics to be its main vehicle for the development of industrial estates in the country. The company’s portfolio includes a majority stake in Laguna Technopark, Inc., which manages the 460-hectare Laguna Technopark in Sta. Rosa, and the 135-hectare Cavite Technopark in the municipality of Naic.

In April, officials of Ayala Land Inc announced that the firm was looking to raise $500 million in the country’s first real estate investment trust (REIT) offering.

Ayala Land is a unit of Ayala Corp, the Philippines’ oldest conglomerate, which has interests ranging from retail, wind and solar energy and telecoms to banking, healthcare, automotive, and utilities.