Apart from its strong track record developing coveted residences, Rockwell is also owned by the Lopez family. Selling to them would mean at least allowing the family to keep an important and historic asset while unlocking value through redevelopment.
It was a tough decision, but in the end, the ABS-CBN team went with what they felt was best for the company given its financial challenges.
“They just got the better offer from Ayala,” a Rockwell insider told InsiderPH.
We’re told Rockwell had longstanding offers not just for ABS-CBN’s Mother Ignacia lot, which is being purchased for P6.2 billion or about P208,000 per square meter, but other real estate assets in its portfolio.
While the outcome was “painful,” the executive said Ayala Land is a very capable developer.
“I’m sure Ayala will do a good job,” the insider said.
ABS-CBN’s recent full-year report provided further clues on why the sale to Ayala Land made business sense.
Weeks after announcing the land deal, ABS-CBN secured a P5 billion loan extension of Bank of the Philippine Islands, which is owned by the Zobel family backing Ayala Land.
BPI is one of the biggest lenders of ABS-CBN, which has been diligently paying down its loans.
But due to the scale of the financial damage from the loss of its franchise during President Duterte’s term, it clearly needs more time to fully recover.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
