The Holiday Inn in Clark is “the goose that lays the golden egg” for the CDC. Photo by Ric Gonzales
CLARK FREEPORT – Property developer Ayala Land Inc. (ALI) is interested in acquiring the 215-hectare Mimosa Leisure Estate (MLE), opening new talks for the privatization of the estate operated by the state-owned Clark Development Corp. (CDC) since 1999.
ALI President Antonino Aquino told CDC President and CEO Felipe Antonio Remollo last week that Ayala is interested in Mimosa. He opened the meeting with Remollo by expressing the ALI’s intention to operate the MLE.
ALI chairman of the board Fernando Zobel De Ayala was also with them in the meeting at the CDC President’s office.
“It’s complete,” said Zobel De Ayala in a jest as the meeting was supposedly for the formalization of their 100 percent acquisition of the water utility company serving this Freeport. The Ayala-owned Manila Water Company Inc. (MWCI) is now in control of the water utility service at Clark.
Remollo said “we are open to any option as long as the price is right.”
“We welcome all legitimate offers for lease or manage of CDC properties especially coming from a solid and reputable firm,” added Remollo in a SMS text message shortly after his meeting with top Ayala officials.
Remollo earlier announced that the CDC would not bid out the MLE “for practical reasons.”
He disclosed that the CDC earns some P260 million yearly in operating the MLE. He added that the resort hotel run by Holiday Inn gives the CDC a net income of P170 million annually.
Remollo also said some private firms had offered to rent the MLE for “only P160 million per year,” forcing him to give up plans for the privatization of the estate.
Remollo added that “it’s immediately okey” for the CDC to turn over the operations of the casino and the Mimosa Golf and Country Club (MGCC) as they both had a combined income of P90 million per year.
“But not Holiday Inn,” stressed Remollo. He quickly added that if “Ayala can give the CDC at least P200 million annually for the Holiday Inn alone I think it’s negotiable.”
The CDC, which took control of MLE in December 1999 by virtue of a court order, failed to privatize the premiere leisure estate four times. The last public bidding was held during the tenure of former CDC President and CEO Benigno Ricafort, who was replaced by Remollo in April.
The MLE has a recreational and residential complex, a 36-hole all-weather golf course designed by the Honolulu-based team Nelson Wright and Haworth, casino and hotel.
