Ayala Land fully acquires PhilEnergy as Japan's Mitsubishi exits

Ayala Land Inc. has taken Philippine Integrated Energy Solutions Inc. (PhilEnergy) under its wing after its partner Mitsubishi Corp. sold its 40 percent stake in the joint venture company.

 

In a disclosure to the Philippine Stock Exchange on Monday, Ayala Land said the acquisition of Mitsubishi's stake "will effectively make PhilEnergy our wholly-owned subsidiary."

 

"The sale, I believe, was part of Mitsubishi's internal allocation of its investments in the Philippines towards real estate development projects," Ayala Land CFO Jaime Ysmael told GMA News Online in a text message.

 

In November 2011, Ayala Land and Mitsubishi formed a 60-40 joint venture to establish PhilEnergy. 

 

For Ayala Land, the investment was to “further enhance the competitiveness of its properties and even that of other potential third-party facilities by lowering energy and water consumption.”

 

Mitsubishi provided the technical support through its affiliated energy-saving operations in Japan and around Asia.

 

PhilEnergy was allotted P1 billion to build two "district cooling systems” (DCS) plants covering the needs of the Ayala Center redevelopment in Makati City and Alabang Town Center in Muntinlupa City.

 

"In terms of scale of operations, PhilEnergy now has four operating sites, P2.6 billion in plant assets with a strong growth pipeline in support of ALI's ramp up of mixed-use developments," Ysmael said. – VS, GMA News