Cash-strapped Dennis Uy's fire sale rages on: Carval investors scoops up Udenna's financially-distressed West Aeropark project in Clark
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Cash-strapped Dennis Uy’s fire sale rages on: Carval investors scoop up Udenna’s financially-distressed West Aeropark project in Clark

Davao-based businessman Dennis Uy is dismantling piece by piece the business empire he built just months before presumptive president Bongbong Marcos replaces his patron, President Rodrigo Duterte, in Malacanang.

Uy’s Udenna Land has divested its stake in Global Gateway Development Corp. (GGDC) to
Aeropark Development Philippines, Inc. (ADPI), a special purpose entity owned by funds managed by CarVal Investors.

CarVal Investors will take over Uy’s West Aeropark, a five-building development with a combined gross floor area of 142,000 square meters in Clark Global City, Pampanga for an undisclosed amount.

Uy had previously announced his divestment in Cebu and Clark casino projects to ultra bilyonaryo Ricky Razon and has put on the block his interests in Phoenix Petroleum, DITO Telecommunity, and Malampaya.

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.

CarVal is taking control of Uy’s Clark assets in collaboration with SofCap Partners, a growth equity investment firm based in the Philippines, which will manage the West Aeropark property.

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CarVal said it worked closely with Udenna’s GGDC and its existing bank lenders to consummate the transaction.

Uy is expected to use the proceeds of his divestment to reduce his mounting problems.

Uy had envisioned West Aeropark as the next big metropolis not unlike Bonifacio Global City with several global business process outsourcing (BPO) tenants that cater to numerous multinational companies.

“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.

 

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