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MANILA, Philippines – SM Group’s high-end property developer, Belle Corp. (BEL), is planning to acquire 49 percent of All-Asia Resources & Reclamation Corp (ARRC), which is owned by Tieng family and a proponent of Philippine Global Gateway project.
Philippine Global Gateway project comprises the proposed development of airport and seaport off the coast of Cavite’s Sangley Point, which will amount to $50 billion.
The airport is projected to accommodate 50 million passengers by year 2050.
China Communications Construction Co. is also anticipated to join the association with an investment of about $20 billion.
ARRC President, Wilson Tieng, cited that President Duterte has approved the proposed project verbally during August 5th Cabinet meeting.
The project competes with another proposed international airport development valued at $10 billion, which will be located in Bulacan. The proposal was presented by San Miguel Corp., which is led by Ramon Ang, and possibly in cooperation with Manuel “Manny” Pangilinan, one of the richest business tycoons in the country.
SMC Chief Finance Office, Ferdinand Constantino, claimed that the airport would be neighboring the Bulacan province and Manila Bay. It would eventually replace the old Ninoy Aquino International Airport in Manila, which sits on 1,600-hectare of Manila Bay land. SMC has invited Ayala, SM Group, and Manny Pangilinan in the project previously.
Constantino added that they have submitted their proposal in line with government’s deliberation. The unsolicited proposition comprises the details on construction, operations, and maintenance of the international airport. According to them, the airport development will solve air congestion issue in the country. Philippines’ trade and tourism will also be further amended by the project.
Belle EVP and CFO, Manual Gana, stated in a disclosure to the Philippine Stock Exchange (PSE), that the firm is eyeing on a 49-percent acquisition of ARRC. This plan is still under subjection of subscription deal finalization.
ARRC is still working out on the components, timing, investors, and other project details as mentioned by Belle.