Dennis Uy sells Clark BPO complex to foreign fund manager

Dennis A. Uy’s Udenna Land has sold an office complex in Clark Global City, Pampanga as the businessman tries to raise more funds to pay for liabilities of his highly-leveraged conglomerate.

In a statement, Aeropark Development Philippines, Inc. (ADPI), a special purpose entity owned by funds managed by CarVal Investors, said it has invested in West Aeropark, a five-building development with a combined gross floor area of 142,000 sqm.

West Aeropark was previously owned by Udenna Land’s Global Gateway Development Corporation (GGDC) and was sold for an undisclosed amount.

“We are excited about the opportunities we are seeing in the Philippines and look forward to helping finance commercial growth and development,” said CarVal Investors Managing Director Nimrod Wei.

He added that, “As the country moves toward post-pandemic recovery, we believe West Aeropark holds a lot of promise especially in the IT-BPO sector, which has started to rebuild its on-site footprint.” The BPO industry requires highly sustainable workspaces with superior infrastructure, transportation access, and expansion potential to support its rapid growth.

Several of the commercial towers of West Aeropark have been completed and partially leased, while a couple of the towers are still under construction.

All five towers have attained pre-certified Gold status under the Leadership in Energy and Environmental Design (LEED) Core & Shell certification.

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“Even at the height of the pandemic when most businesses have resorted to cost-cutting measures, international companies continued to increase their presence in the Philippines,” said SofCap Partners Managing Director and Principal Evan McBride.

He noted that, “With West Aeropark, we are in the position to offer sustainable and disaster resilient spaces to global leaders in technology, financial services, business process outsourcing and other commercial entities looking to establish themselves in Clark.” ADPI is the local special purpose entity owned by funds managed by CarVal Investors, an established global alternative investment manager focused on distressed and credit-intensive assets.

Since 1987, CarVal’s team has navigated through ever-changing credit market cycles, opportunistically investing $135 billion in 5,630 transactions across 82 countries.

CarVal/ADPI is the largest and controlling investor in the West Aeropark transaction. 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. CarVal/ADPI and SofCap worked closely with Udenna’s GGDC and its existing bank lenders to consummate the transaction.

“Proceeds from the transaction will ultimately support Udenna’s ongoing liabilities management exercise,” the statement said.

Under the mandate of the government’s Bases Conversion and Development Authority (BCDA), Clark Global City is being primed as the next big metropolis and West Aeropark is one of its landmark developments.

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It is home to several global Business Process Outsourcing (BPO) tenants that cater to numerous multinational companies.

Clark Global City’s prime location next to Clark International Airport, high-quality infrastructure, a large labor pool, and a less congested alternative to Manila, are among the key selling points for global BPOs.

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The article was originally published in Manila Bulletin and written by James A. Loyola.

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