AVIDA LAND Corp. is cancelling its joint venture with Gatchalian-led Philippines Estates Corp. (PHES) and the subsidiaries of Wellex Industries, Inc. (WIN) for a proposed project in Valenzuela City’s Plastic City.
Avida’s parent Ayala Land, Inc. (ALI) told the stock exchange yesterday the companies have “mutually agreed to terminate the Memorandum of Agreement (MoA) executed by the parties in December 2012.”
The MoA refers to the two firms’ proposed development of a 21-hectare property in Plastic City — a plastic manufacturing plant in Barangay Canumay that the Gatchalian family used to run through WIN subsidiary Plastic City Industrial Corp. (PCIC).
“PHES and subsidiaries of WIN have decided to reevaluate its concept and feasibility studies on the property while Avida will focus on its ongoing and other planned projects,” ALI’s disclosure read.
The tandem of ALI’s mid-income residential brand and the Gatchalian companies was planning to develop Plastic City into a mixed-use urban complex with residential condominiums, townhouses and office spaces.
In WIN’s 2018 annual report, it said the land covered by the MoA with Avida had a carrying value of P75.61 million.
Despite their partnership trailing as far back as 2012, the companies could not begin with the project until last year, when WIN’s subsidiaries terminated the rehabilitation case of PCIC to be allowed to keep possession of the Plastic City property.
When PCIC ended commercial operations of Plastic City in 2002, the warehouse and building facilities of the plant have been leased out by PCIC subsidiaries, which are all under WIN.
WIN said in a regulatory filing its business is now focused on maintaining equipment and facilities in Plastic City, which it hopes to resume operations by finding strategic partners.
PHES, on the other hand, was an agriculture firm but is now in the business of real estate holdings with an agreement with Rexlon Realty Group, Inc.; Recovery Real Estate Corp.; Ropeman International Corp.; The Wellex Group, Inc. and Pacific Rehouse Corp.
Earlier this year, Avida launched a subdivision within ALI’s mixed-use estate Vermosa in Imus, Cavita. Avida Verra Settings Vermosa offers 370 units on the 10-hectare property.
It also unveiled Avida Towers (AT) Makati Southpoint — a three-tower residential condominium development located on an 11,000 square meter lot along Chino Roces Avenue in Barangay Bangkal, Makati City.
Shares in ALI at the stock exchange grew 1.50 points or 3.30% to P47 each on Monday, while shares in WIN fell 4.48% to P0.213 each and shares in PHES increased 1.27% to P0.40 each. — Denise A. Valdez