US investment firm buys Uy’s Udenna Clark property

A US-based global investment firm focused on investing in financially struggling companies has acquired a property development by a company owned by Davao tycoon Dennis Uy.

In a statement on Friday, Aeropark Development Philippines Inc. (ADPI), a special purpose entity owned by CarVal Investors, said it acquired West Aeropark “for an undisclosed amount.”

West Aeropark is a five-building development with a combined gross floor area of 142,000 square meters, previously owned by Uy’s Udenna Land’s Global Gateway Development Corp. (GGDC) in Clark Global City, Pampanga.

ADPI is the local special purpose entity owned by funds managed by CarVal Investors, a US-based global alternative investment manager “focused on distressed and credit-intensive assets.”

ADPI, as Carval Investors’ special purpose entity, is the largest and controlling investor in the West Aeropark transaction.

West Aeropark is one of the landmark developments in Clark Global City. It is home to several global business process outsourcing (BPO) tenants that cater to numerous multinational companies.

“This transaction is a collaborative effort between CarVal/ADPI and SofCap Partners, a growth equity investment firm based in the Philippines. SofCap will manage the West Aeropark assets,” it said.

“CarVal/ADPI and SofCap worked closely with Udenna’s GGDC and its existing bank lenders to consummate the transaction,” the company said.

ADPI said the proceeds from the transaction will ultimately support Udenna’s ongoing liabilities management exercise.

Since President Duterte assumed the presidency in 2016, Uy has expanded his empire through debt-funded acquisitions and ventures, including the takeover of the Malampaya facility, establishing the third telco DITO, and acquiring several companies such as Familymart, Conti’s, and Enderun.

A report by Reuters said Uy, a known campaign donor of Duterte, is considering the sale of billions worth of businesses including the Malampaya facility he acquired from Chevron and Shell.

In a separate statement, Udenna Corp. confirmed that it “always remained open to exploring different opportunities” and that “there has been renewed interest in discussing partnership and strategic alliance opportunities with the Group.”—AOL, GMA News