One of Makati City’s largest real estate deals fizzled out after Ayala Land and the Asian Institute of Management failed to reach an agreement for the purchase of land that’s home to the country’s leading business school.
AIM occupies a roughly 1.1-hectare property that was donated by Ayala Land when the school was established in 1968.
AIM’s space constraints
Last year, the Zobel family–led developer was in talks to repurchase the property from AIM, whose growth has been constrained by limited campus space.
The school, which developed a reputation for being one of the best business training centers in Asia, was also sitting on a valuable commercial lot that real estate experts valued at around P10 billion.
Relocation plan hits a snag
Proceeds from the sale would have helped bankroll AIM’s relocation to a bigger property along Manila Bay that was being developed by the Ty family’s Federal Land.
At one point, it appeared a deal would push through, given Ayala Land’s interest in redeveloping the valuable lot along Paseo de Roxas in Legazpi Village that predates the modern-day Makati financial district developed by Ayala Land.
But insiders said the transaction was scuttled due to a price issue, as Ayala Land would have needed to raise its offer to buy out the preexisting rights of the Lopez family, another of AIM’s founding donors.
“AIM didn’t accept the proposal of ALI, which factored in the asks of the Lopezes,” a deal insider said.
“[It’s] also a funding issue. Since the price didn’t meet expectations, the risk to fund and build the new campus would have been too large,” he said.
AIM stays put for now
The Lopez family donated the AIM building, with the original deed supposedly stating that they would receive a share of proceeds from any future sale or transaction, a second insider said.
“Of course, that was before anyone could imagine how expensive land would become,” the insider said.
Despite the new location being farther from key business districts such as Makati and Bonifacio Global City, AIM was open to relocating to Manila Bay given its need for a larger campus.
“We were okay with the transfer of location,” the insider said.
A Lopez group source, however, said staying put was the best option for now.
“It’s an asset that it’s there. The center of the Philippine management is within the Makati CBD unless there are better options,” this insider noted.
