Joins Sangley coalition is Yuchengco Group
21 June 2022
As a member of the private sector consortium building Cavite’s Sangley Point International Airport, House of Investments (HI), the investment holding and management firm of the Yuchengco Group, has received the board of directors’ approval.
This came about since HI also gave the purchase of A.T. approval. As part of its long-term aspirations to integrate the conglomerate’s property interests, Yuchengco Center was purchased by its affiliate bank Rizal Commercial Banking Corp. (RCBC) for P6.065 billion.
According to HI President and CEO Lorenzo Tan, “this is a part of our strategy to realign the businesses of YGC and improve the conglomerate’s position with a more comprehensive approach in the property development and management sector.”
HI will be a member of the partnership and contribute equity, while its construction arm, Yuchengco-owned EEI Corp., will take part in building the airport. YGC has corporate holdings in banking, financial services, construction, education, information technology, and energy.
By the end of the year, the Cavite province government and its prospective joint venture partner hope to start construction on the airport.
SPIA Development Group, a commercial consortium made up of domestic and international businesses, submitted an unsolicited $10.9 billion bid to build the SPIA last year. The Cavite provincial administration had formally accepted its proposal.
Additionally, the consortium has been given original proponent status (OPS).
The Yuchengco Group of Companies, Cavitex Holdings Inc., led by businessman Luis Virata, and Lucio Tan’s MacroAsia Corp. are local partners of the SPIA Development Consortium. MacroAsia Corp. will offer managerial and technical services for the project’s aviation support and logistics component.
Reputable international businesses Samsung C&T Corp. of South Korea, Munich Airport International GmbH, and the design and engineering company Arup Group from London are joining them.
The group had earlier declared that they were prepared to upgrade the airport into a first-class gateway that could serve as a substitute for the congested Ninoy Aquino International Airport.
It plans to build the SPIA in three phases, with phases 1A and 1B expected to cost $2.3 billion, $2 billion, and $6.6 billion respectively.
