The group of retail tycoon Lucio Co is acquiring Alphaland Southgate Tower, an office development of Alphaland Corp. led by former trade minister Roberto Ongpin, for P5 billion.
The deal was recently approved by the Philippine Competition Commission, the government’s anti-trust body.
Under the deal, League One Inc., a real estate company led by Co, will acquire two adjoining parcels of land with a total area of 9,497 square meters at Pasong Tamo Extension corner Edsa in Makati City and registered in the name of Alphaland Corporation.
It will also purchase a 19-story building situated in the said parcels of land with a total floor area of 76,976 square meters and various machinery installed/situated in the building.
“Upon evaluation of findings and recommendation of the Mergers and Acquisitions Office, which included, among others, the information obtained from the parties and other sources to date, finds the proposed acquisition by League One of the assets of Alphaland will not likely result in substantial lessening of competition due to the existence of sufficient competitive constructs exerted brother players in the market for commercial real estate leasing in Makati City and Bonifacio Global City,” PCC said.
“Accordingly the commission hereby resolves that it will take no further action with the respect to the proposed acquisition by League One of assets of Alphaland,” the agency said.
Co, the principal stockholder of Puregold Price Club Inc. and Cosco Capital, also acquired Alphaland Tower Makati, a high-end office development along Ayala Ave., in 2015.
Alphaland Tower Makati was one of the projects of Alphaland Corp., originally a joint venture between Ongpin and UK-based equity fund Ashmore Group.
Alphaland Tower Makati was one of the assets transferred to the Ashmore group as a settlement after the divorce of the two parties in 2014.
Alphaland earlier said that various investors expressed interest in investing in the company after Ashmore’s divestment. The company did not identify the interested parties.
With the sale of Alphaland Southgate, Ongpin will still have several properties under Alphaland’s portfolio including Alphaland’s Balesin Island Club, City Club at Alphaland Makati Place, The Residences at Alphaland Makati Place and Alphaland Baguio Mountain Lodges.