Ayala-led Avida Land Corp. and the Wellex Group of Chinese-Filipino businessman William Gatchalian have agreed not to proceed with the proposed construction of a township in Valenzuela City.
The deal signed by Wellex subsidiaries Philippine Estates Corp., Pacific Plastic Corp., Inland Container Corp. and Kennex Container Corp. and Avida Land called for the development of a 21 hectare property to be known as Plastic City.
It provides for the transfer of such land to Avida free and clear of informal settlers, occupants, technical errors, encumbrances and liens.
Avida, meanwhile, was tasked with preparing a master plan and market study for the development timetable of the property, which was the former site of the Gatchalian family’s Plastic City Industrial Corp. (PCIC).
PCIC ceased operations in 2002 due to mounting losses
“PHES and subsidiaries of Wellex have decided to reevaluate their concept and feasibility studies on the property while Avida will focus on its ongoing and other planned projects,” Wellex said in a disclosure to the stock exchange Friday.