Aboitiz, Yuchengco units to develop property in Tarlac
by VG Cabuag, https://www.facebook.com/, https://www.facebook.com/BusinessMirror/ · BusinessMirror- VG Cabuag
- October 11, 2024
- 2 minute read
Aboitiz InfraCapital, the infrastructure arm of Aboitiz Equity Ventures Inc. (AEV), and House of Investments (HI), the non-bank holding company of the Yuchengco Group of Companies, are teaming up for the possible joint development of an expanded economic estate in Tarlac.
The company said this will be conducted through Tarlac Terra Ventures Inc.
Subject to finalization of the definitive agreement and corporate and regulatory approvals, this collaboration will expand AIC’s TARI Estate by incorporating the Yuchengco’s 184-hectare adjacent property into the estate’s ongoing development.
This will add mixed-use components that will complement its industrial and business offerings.
Real estate company Tarlac Terra, owner of the 184-hectare property, is 100 percent owned by HI.
Under the terms of the agreement, HI will hold a 51-percent stake, while AIC will maintain a 49-percent stake in the joint venture.
Together, the two companies plan to develop and market the land for various mixed-use purposes, enhancing the overall ecosystem within the expanded TARI Estate.
The project is aligned with AIC’s long-term vision of creating a smart and sustainable community hub in Central Luzon. Through this partnership, AIC and HI are set to boost the regional economy by creating jobs and attracting local and foreign investments, ultimately driving sustainable progress in the locality.
“This will be our first major venture into economic estates. We anticipate with pleasure the partnership with AIC, one of the leading industrial estate developers in the country. This joint venture will be an expansion of HI’s business interests into land development, diversifying our property portfolio. We aim to provide long term value through flexible, sustainable, and forward-thinking real estate solutions,” said Lorenzo Tan, HI president.
AIC’s TARI Estate, which broke ground last May, is poised to become a key economic driver in the region, with its initial 200-hectare development expected to generate 60,000 jobs. The integration of HI’s 184-hectare mixed-use property will complement TARI Estate’s industrial core, offering a broader range of opportunities for industrial, commercial and business activities within the property.
Last April, AEV said it is confident of posting growth this year following the integration of its past acquisitions.
The conglomerate said it is on track to raising the contribution of its non-power business to 50 percent of earnings before interest tax depreciation and amortization (EBITDA) as it integrates the consumer loans business of lender Citibank to Union Bank of the Philippines, the operation of the Mactan International Airport and the Coca-Cola Bottlers Philippines Inc. (CCBPI).
The group acquired Citibank’s credit card business for P55 billion. It also bought Megawide Construction Corp. out of the Mactan-Cebu International Airport operation for P25 billion.
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VG Cabuag
A journalism graduate and has covered the Philippine business beat for more than a decade.
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