Friday, August 14, 2015

Ayala Land takes control of Divisoria’s Tutuban mall

August 14, 2015

Property giant Ayala Land, Inc. (ALI) is investing P5.6 billion to acquire a majority stake in Prime Orion Philippines, Inc. which owns the Tutuban shopping complex in the bargain haven of Divisoria.

In a disclosure to the Philippine Stock Exchange, ALI said it entered into an agreement with POPI to subscribe to 2.5 billion POPI common shares of stock for a 51.36 percent interest in POPI, subject to certain terms and conditions.

POPI is listed in the Philippine Stock Exchange and is the owner of Tutuban Center in Manila City through its wholly owned subsidiary Tutuban Properties, Inc.

Tutuban Center is a retail complex in the shopping district of Divisoria in Tondo, Manila. It has a gross leasable area of about 60,000 square meters, offering various concepts from wholesale and bargain stalls, to regular retail and food outlets.

“This acquisition is aligned with ALI’s thrust of expanding its leasing business,” ALI said.
With the entry of ALI, POPI said it “will be able to benefit from the expertise and resources of ALI and optimize the development of its property assets, especially Tutuban Center.”
Tutuban Center, which sits on a 20-hectare property, will be the location of the North South Railway Project Transfer Station which will interconnect with the LRT 2 West Station.
POPI, through Tutuban Properties Inc., is currently continuing a program to expand, redevelop and rebrand its iconic Tutuban Center so that it can widen its consumer base from the traditional bargain hunters.

The shopping complex welcomed its new tenants which includes retailers from the food and fashion industries with the opening of TC Shopping Plaza which hosts a wide variety of products — from accessories, novelty items, apparels, and food stalls.

This recent development and tenant acquisition is part of the shopping district’s aggressive redevelopment and rebranding plans. Part of Tutuban Center’s efforts this year is to expand its target market and reach out to a wide range of tenants including traders.

For the rebranding, Tutuban will be transformed into a one stop shop for every kind of shopper. The plan is to utilize the property’s huge area to cater to different segments of the market.

The Centermall, for example, is being positioned as the lifestyle center while soon to be developed buildings will be for retailers and wholesalers.

Known for having heavy foot traffic, Tutuban Center is within convenient access to tenants and shoppers coming from Mayhaligue (PNR riders), Recto (LRT and North commuters), Tondo, Tabora, and Ilaya.

Meanwhile, The Department of Transportation and Communications (DOTC) has also pinpointed Tutuban Center to serve as the transfer station for the planned P171-billion North-South rail project. The west extension of Light Rail Transit Line 2 (LRT 2) in Recto will also be close to the vicinity of the shopping complex.

The projects, which are set to start very soon, will extend the LRT from Recto all the way to the port of Manila. On the other hand, the North-South rail project, which will run all the way to Bulacan and Laguna, will have Tutuban as its central station.

“Tutuban is the first mall in Divisoria. A lot of competition has come since then, but with new tenants coming in and the rebranding plans, we are confident that Tutuban will still be top-of-mind as the place to be in Divisoria,” said Tecson.

by James Loyola
link to the original article here >>

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