GATCHALIAN’S PLAS­TIC CITY UP FOR FACE-LIFT INTO UR­BAN HUB

Philippine Daily Inquirer - - BUSINESS - By Doris Dum­lao-Abadilla @Philbizwat­cher

The le­gal road­blocks to prop­erty gi­ant Ayala Land’s bid to re­de­velop the Gatchalian fam­ily’s 60hectare for­mer plas­tics man­u­fac­tur­ing hub in Valen­zuela City into a new mixed-use ur­ban com­plex have been cleared six years af­ter the par­ties shook hands for a joint ven­ture.

In a dis­clo­sure to the Philip­pine Stock Ex­change yes­ter­day, Gatchalian-led Wellex In­dus­tries Inc. (WIN) said the re­ha­bil­i­ta­tion case of its sub­sidiaries had been ter­mi­nated fol­low­ing the set­tle­ment of loans with Philip­pine Na­tional Bank.

“In this re­gard, the prop­er­ties of its sub­sidiaries, marked with en­cum­brances due to the ex­is­tence of the re­ha­bil­i­ta­tion court case, will now be free from any lien and en­cum­brances,” the dis­clo­sure said.

The ter­mi­na­tion of the re­ha­bil­i­ta­tion court case al­lows WIN’s sub­sidiaries to pro­ceed with the me­moran­dum of agree­ment (MOA) with Avida Land.

Avida Land is the mid­dle-in­come prop­erty de­vel­op­ment arm of Ayala Land Inc. In 2012, Gatchalian’s Philip­pine Es­tates Corp. (PHES) and Avida Land signed a deal to de­velop 17 hectares of the old “Plas­tic City” es­tate.

PHES is one of the own­ers of the prop­erty that Avida Land pro­posed to de­velop in Valen­zuela but Ayala Land had ex­pressed in­ter­est to de­velop the en­tire 60-hectare area un­der a mixed-use mas­ter plan.

“It must be noted that the joint ven­ture agree­ment with Avida Land has not been re­scinded. In fact, the ter­mi­na­tion of the re­ha­bil­i­ta­tion case and the sub­se­quent lift­ing of the an­no­ta­tions on the ti­tles cov­er­ing the Plas­tic City prop­er­ties are part of the re­spon­si­bil­i­ties of the com­pany un­der the MOA with Avida Land,” WIN’s dis­clo­sure said.

“Now that the court case has been ter­mi­nated, the an­no­ta­tions per­tain­ing to the en­cum­brance can be lifted, paving the way for the afore­men­tioned prop­erty de­vel­op­ment to take place,” it added.

The Gatchalian­s’ Plas­tic City In­dus­trial Corp. has long ceased its plas­tics man­u­fac­tur­ing and com­mer­cial op­er­a­tions due to con­tin­ued losses, but sub­sidiaries have leased out its ware­house and build­ing fa­cil­i­ties.

It was ear­lier re­ported that the re­de­vel­op­ment planned for Plas­tic City would in­clude an ed­u­ca­tional com­plex en­vi­sioned to be a smaller ver­sion of the UP Tech­noHub in Que­zon City. There were also plans to build of­fice space to at­tract busi­ness process out­sourc­ing firms.

Newspapers in English

Newspapers from Philippines

© PressReader. All rights reserved.