ABOITIZ INFRACAPITAL, Inc. (AIC) is targeting to start construction works for its fourth economic estate in the first half of next year, a company official said.
Rafael Fernandez de Mesa, head of AIC Economic Estates, said the estate will rise on a 200-hectare property in Tarlac City.
“We are looking to start construction probably within the first half of next year,” Mr. de Mesa told reporters last week. “We see that the demand is there and we want to make sure that the Philippines is able to capitalize on the strong interests in the market.”
In a disclosure on Thursday, Central Azucarera de Tarlac, Inc. said that its board of directors had approved the proposed sale of a property under its wholly owned subsidiary Luisita Land Corp. to Lima Land, Inc.
Although both parties have not disclosed the total amount of the transaction, Central Azucarera de Tarlac said the sales proceeds will be used in part to liquidate Luisita Land’s long-term debt, which it placed at P1.65 billion.
It added the total consideration for the sale is more than 10% of the total assets of the sugar milling company.
“We have an agreement in place to purchase those 200 hectares, but there are certain conditions that need to be met before the sale is finalized,” Mr. de Mesa said.
“But we are excited for our product to come to Central Luzon, and we will be trying to replicate the success that we had here in Batangas,” he added, referring to AIC’s LIMA Estate.
Asked when the company expects to close the deal, he said: “We anticipate that it will be closed probably in the next few months.”
The fourth economic estate will target to attract more manufacturing companies, which Mr. de Mesa said represents the current market demand.
“We expect to attract more manufacturing companies that are looking to export their product in the electronics industry, automotives, as well as local companies that manufacture for domestic market but want to be within an industrial development that has reliable utilities, safe and secure, and has the complementary facilities to help them attract and retain talent,” he said.
AIC has existing relationship with about 220 companies, which are already in its economic estates, he added.
“So, naturally that is part of the potential market that we will be trying to sell to, but in addition to that, we have been very proactive in going out there to attract investments to the country so we have been having roadshows in Japan, Taiwan, and China,” he said.
AIC currently has three economic estates: the 826-hectare LIMA Estate in Batangas, the 63-hectare MEZ2 Estate in Mactan Cebu International Airport, and the 540-hectare West Cebu Estate in Balamban. — Justine Irish D. Tabile