ABS-CBN Corp. said it is selling a portion of its 4.4 hectare property in Quezon City to Ayala Land Inc. for P6.42 billion.
The listed TV content creator said in a statement yesterday said that it is selling 3.3 hectares of the property, which houses several buildings including production facilities.
ABS-CBN said the sale was based on the mutually agreed valuation by the parties following arms-length negotiations and proper due diligence review.
The proceeds, which ABS-CBN will receive from Ayala Land on installment, will be used to pre-pay loans.
The company’s offices and studios will be consolidated in the remaining 1.4 hectares of the property, it said.
As part of the deal, Ayala Land will place in an escrow account the downpayment for the property, which will only be released upon completion of certain conditions, including clearance from the Philippine Competition Commission and signing of the deed of absolute sale, ABS-CBN said.
“The balance shall be payable in installment over 10 years,” it also said.
ABS-CBN closed its nine months for fiscal year 2024 with a loss of P2.6 billion, lower than the P3.3-billion loss the prior year.
Revenues dropped 10 percent at P12.1 billionfrom P13.5 billion, primarily due to the decline in cable TV and broadband revenues.
