Philippine Daily Inquirer


- 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“It must be noted that the joint venture agreement with Avida Land has not been rescinded.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.

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