December 02, 2014

ALI raising stake in Trinoma mall owner

Ayala Land Inc today disclosed that it has offered to buy the 15.79% stake of Anglo Phil Holdings Corp in North Triangle Depot Commercial Corp (NTDCC) for P1.26b. NTDCC owns and operates the Trinoma commercial center in North Triangle City. If consummated, the deal will bring ALI’s stake in NTDCC to 65.08%% and will enable it to consolidated the results from NTDCC’s operations.

Our take: The Trinoma mall has a gross leasable area of 188,041 sqms. The deal effectively values the property at around P42,436/sqm which appears reasonable given its strategic location and prospects for appreciation given that it is adjacent to the ongoing development of Vertis North, a mixed-used township project which is envisioned to include the central business district of Quezon City. However, given that the Trinoma mall accounts for just 14% of ALI’s total consolidated and managed mall, we do not see any material impact of the increased stake in NTDCC in the near term. – WealthSec