September 14, 2015

IRC still talking with potential partners for development of large Rizal property

BusinessWorld today quoted the chairman of IRC Properties Inc (IRC) as saying the company is currently in talks with four groups for a possible partnership to develop around 2,000 hectares of land in Binangonan, Rizal.

However, the company cannot finalize any deal pending the resolution of land ownership issues with other claimants of the land. While the courts have ruled that IRC’s titles over the property are valid, the company was still ordered to consider claimants who have paid the tax declaration on the same land.

Our take: The property offers good potentials for mixed-use development as it is located at the fringes of Metro Manila and can benefit from the ongoing construction of the LRT 2 extension to Rizal and the proliferation of extension campuses of key universities in the province. This will render it attractive for residential projects as well as possible retail and BPO office developments.

Ayala Land Inc has been reported to be finalizing a deal for the development of a portion of the property covering around 18.8 hectares. While this should provide an edge to ALI, this does not necessarily guarantee that IRC will also entertain offers from other potential partners. – WealthSec