ALI offloads ATC stake for P13.5 billion

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December 17, 2025 | 12:00am

To boost next-gen projects

MANILA, Philippines — Property giant Ayala Land Inc. (ALI) is exiting one of its prized retail assets, generating P13.5 billion to fast-track the development of its next-generation large-scale and high-growth leasing assets.

ALI has executed a share purchase agreement with its existing joint-venture partner, the Madrigal family, for the sale of its 50 percent ownership of Alabang Commercial Center Corp., the entity that owns and operates Alabang Town Center (ATC) in Muntinlupa City.

ALI said the unsolicited offer from its joint venture partner provided a premium, allowing the company to recognize gains from the sale and monetize its stake in ATC.

It said the move is a deliberate execution of strategy to be a premier creator of value, showcasing “a disciplined approach of developing assets, stabilizing their operations and monetizing them at an optimal valuation to aggressively fund future growth and enhance shareholder returns.”

The agreement is subject to customary closing conditions.

“Our strategy is focused on a dynamic cycle of value creation. We build, we stabilize, and we unlock value at the right time to fuel our next wave of innovation,” ALI president and CEO Meean Dy said.

“This transaction is a prime example of that strategy in action. We are monetizing a legacy asset at peak valuation to accelerate the rollout of our expansive pipeline of commercial and retail spaces, which will define the Ayala brand of development for the next decade,” she said.

Proceeds from the sale are expected to fuel further growth in ALI’s leasing portfolio and provide its stakeholders with return of capital.

ALI said the proceeds would be a key driver in funding its robust leasing pipeline, which includes nearly 700,000 square meters of new gross leasable area in the next five years.

Alabang Town Center is a premier suburban lifestyle center located south of Metro Manila, situated adjacent to gated residential communities and bustling business developments.

“This was an opportunistic deal that enabled Ayala Land to exit its joint venture with the Madrigal family at an attractive price. The company can readily use the cash for various projects in its growth pipeline,” China Bank Capital Corp. managing director Juan Paolo Colet said.

While it remains to be seen what the Madrigal family will do with their prime commercial property, Colet said that a major redevelopment might be on the table.

“Given the price they paid, they would need to unlock more value from the asset,” he said.

ALI, for its part, reaffirmed its commitment to Southern Metro Manila, where the company has large-scale, master-planned estates such as Arca South, Vermosa and Evo City.

In the Alabang area, ALI continues to serve the local community with ongoing developments, such as its 6.6-hectare Cerca Estate.