Ayalas seal deal to acquire Tarlac property
Property giant Ayala Land Inc. has entered into a deed of absolute sale with Central Azucarera de Tarlac Inc. (CAT) for the purchase of 290 hectares of land.
ALI will transform the property, located in Bgy. Central, San Miguel, Tarlac City, into another large-scale mixed use development.
The purchase follows the Philippine Competition Commission’s approval of the deal in early March.
The sale of the asset will translate into additional cash for CAT, which will be used to partially settle its P2.1 billion long-term bank debt.
Savings arising from the decreased debt service costs will be used for reinvestments that are expected to increase shareholder value.
“This is part of the implementation of the company strategy to maintain appropriate and efficient asset utilization, reduce interest costs and generate additional liquidity for reinvestment resulting to increased shareholder value,” CAT said.