By LeslieD. Venzon
MANILA, April 6 (PNA) — Property giant Ayala Land Inc. (ALI) on Monday said it acquired a minority stake in Malaysian property development company, GW Plastics Holdings Bhd., in an effort to expand its footprint in Southeast Asia.
ALI Sr. Vice President and Chief Finance Officer Jaime Ysmael said the company, through its wholly-owned subsidiary, Regent Wise Investments Limited, purchased 9.16 percent of the shares of GW Plastics Holdings through a private placement for USD 43 million, or Php1.9 billion.
GW Plastics Holdings, to be renamed Modular Construction Technology (MCT) Bhd., is a medium-sized property development company specializing in mixed-use projects that include retail, office, hotel and mid to affordable residential. It has a total market capitalization of about USD 450 million.
“This (partnership) allows Ayala Land to enter the Malaysian market with an experienced team, benefit from synergies of the partnership, and further add value to MCT over the long term to enable it to be a key player in the Malaysian real estate market,” Ysmael told the local bourse.
In a press briefing after the company’s stockholders’ meeting Monday, ALI president Bobby Dy said that the Malaysian market offered a lot of opportunities for the company to participate in.
“I think through our board seat, we will have some influence in terms of the strategic direction of the company,” he said.
In the same briefing, Ysmael said ALI was on the lookout for more business opportunities in other Southeast Asian countries, particularly Myanmar.
“It’s just a matter of finding the right partner and project. Definitely, ASEAN is a market we’re looking out seriously given the fact that it’s the fastest growing region in the world,” he said.
Despite the company’s business expansion overseas, Dy said that the firm expect bulk of its revenues to come from the Philippines.
He said ALI aimed to grow by 20 percent annually to hit a net income of Php 40 billion by the year 2020.
Dy banks on the country’s robust economic growth, bolstered by low mortgage rates, a steady stream of remittances from overseas Filipinos and higher household consumption.
“With these positive economic drivers, we believe we are uniquely positioned to capitalize on the opportunities presented by a broader and more dynamic market,” he said.
Further, Dy said the company was leveraging on over 8,000-hectare of land bank in 45 growth centers by continuously developing established sites and investing in emerging and new estates.
“We will continue to launch residential products across our five brands and put in significant investments to further build our malls, offices and hotels businesses,” he said. (PNA)