PAMPANGA, PHILIPPINES — Aeropark Development Philippines, Inc. (ADPI), a special purpose entity owned by funds managed by CarVal Investors, has invested in West Aeropark, a five-building development with a combined gross floor area of 142,000 sqm, previously owned by Udenna Land’s Global Gateway Development Corporation (GGDC) in Clark Global City, Pampanga for an undisclosed amount.
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. Today, CarVal Investors has approximately $14 billion in assets under management in corporate securities, loan portfolios, structured credit, and hard assets.
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.
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. 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.
“We are excited about the opportunities we are seeing in the Philippines and look forward to helping finance commercial growth and development. 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,” said Nimrod Wei, a Managing Director for CarVal Investors.
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.
Evan McBride, Managing Director and Principal, SofCap Partners, added, “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. 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.”