-3Notes to Consolidated Financial Statements of this dispute is also among the matters covered by the definitive agreement signed on June 5, 2014 by the RVO Group and AH Group. Dealing with the Wenceslao Group (in order to, among others, settle the dispute between the Wenceslao Group and the Group) will be the sole responsibility of the AH Group as provided for in the settlement agreement. Alphaland Southgate Tower continues to provide recurring cash flows; the Group has substantially completed its major Club projects, namely, Alphaland Balesin Island Club and The City Club at Alphaland Makati Place. On April 30, 2014, the Group has sold its 20% investment in the Shangri-la at the Fort project for P =1.7 billion (see Note 10). Currently, the Group is negotiating with a bank for an additional loan of at least P =1.0 billion to finance the completion of the Alphaland Makati Place project. These funds (together with the proceeds from the settlement with AH Group) will allow the Group to continue its current and future projects. After the implementation of the definitive agreement, the Group will focus on the development and completion of its Alphaland Makati Place project and Alphaland Baguio Mountain Lodges project and the operation of its completed projects. ALPHA’s Significant Legal Subsidiaries as of December 31, 2013 and 2012 a. Alphaland Balesin Island Resort Corporation (ABIRC), 100%-owned by ALPHA, was incorporated in the Philippines and registered with the Philippine SEC on May 26, 2010. ABIRC’s primary purpose is to invest in, purchase, or otherwise acquire and own, hold, use, sell, assign, transfer, mortgage, pledge, and exchange or otherwise dispose, as may be permitted by law, of real and personal property of every kind and description. ABIRC has investment in preferred shares of Alphaland Balesin Island Club, Inc. (ABICI). b. Alphaland Development, Inc. (ADI), 100%-owned by ALPHA, was incorporated and registered with the Philippine SEC on May 29, 2007. ADI’s primary purpose is to engage in real property acquisition and development. ADI’s acquired property pertains to a 20-storey office tower building with a 6-storey podium shopping mall known as Alphaland Southgate Tower (see Note 12). c. Alphaland Makati Place, Inc. (AMPI), 100%-owned by ADI, was incorporated and registered
with the Philippine SEC on March 6, 1991 as Silvertown Property Development Corporation. On February 26, 2010, the Philippine SEC approved the change in corporate name from “Silvertown Property Development Corporation” to “Alphaland Makati Place, Inc.”. AMPI’s primary purpose is to sell, lease and sublease the Malugay Property, a premium one hectare property. AMPI entered into a joint venture with BSP to develop the Malugay Property into a first class commercial development to be known as Alphaland Makati Place (see Note 4). It is a mixed-use property development consisting of high end residential towers atop an upscale six-storey podium with a shopping center and a City Club, including a Boy Scout Convention Center. AMPI has investment in preferred shares of The City Club at Alphaland Makati Place, Inc. (TCCAMPI).
d. AMTI, 100%-owned by ADI, was incorporated and registered with the Philippine SEC on July 28, 2010, with the primary purpose of developing, leasing and subleasing a property situated along Ayala Avenue, which is the center of the Makati Central District. The property measuring 2,400 square meters, more or less, was acquired by ADI from Sta. Lucia Land, Inc.