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Business

ALI sets sights on Metro Manila, Calabarzon

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Ayala Land Inc. (ALI), the real estate arm of Ayala Corp., said Metro Manila and the Calabarzon region will continue to be the focus of its development activities this year and in the next few years as the oppurtunities for growth are abundant.

In documents submitted to the Securities and Exchange Commission, ALI said it has already lined up several projects in these areas where the company believes there are significant growth opportunities with the Calabarzon region being the fastest growing region in the Philippines, in terms of both population and economic growth.

ALI’s major property developments have been located mostly in Metro Manila and the Calabarzon region south of Metro Manila.

Of the company’s landbank of 3,937 hectares of property, 2,954 hectares or 75 percent are in the Calabarzon region, 360 hectares are in Metro Manila, while 515 hectares are in the Visayas-Mindanao region and 108 hectares are in other Luzon areas.

These properties are in Laguna, Cavite, Batangas, Quezon, Naga, Cabanatuan/Baguio, Bacolod, Cebu, Davao, Cagayan de Oro, Boracay, Makati, Alabang, Quezon City, Antipolo and Las Piñas.

ALI is currently pursuing the development of Ayala South, a large planned community project in the Calabarzon region. Construction of a residential and farm estate project in Lipa, Batangas has also begun.

The firm’s extensive landbank in the Calabarzon region is mostly under joint venture arrangements with different land owners.

ALI expects to continue to form joint ventures as it acquires and develops large tracts of land. It believes that by way of a joint development, in which sellers of land are offered the right to retain an interest in the development of a project, it will increase opportunities for the company in positioning for large tracts of undeveloped land.

This arrangement works to both the company’s and joint venture partners’ advantage as it allows the firm to add up to its increasing land bank at a minimal cash outlay versus an outright cash purchase of the land and at the same time allows the joint venture partner to partake in the increased value of the property upon development and sale of the project and the realization of future earnings.

This results in a lower carrying cost to the company even if the development incurs a loss in the future while preserving the company’s and joint venture partners’ interest as the properties appreciate in value over time.

Ayala believes that there is substantial demand for middle-income and mass housing in the country. Thus, in addition to its high-end projects, ALI, through its subsidiary Laguna Property Holdings Inc. (LHPI) is developing certain properties that target the mass housing market. – Zinnia dela Peña

vuukle comment

ANTIPOLO AND LAS PI

AYALA CORP

AYALA LAND INC

AYALA SOUTH

BATANGAS

CALABARZON

LAGUNA PROPERTY HOLDINGS INC

LAND

METRO MANILA

METRO MANILA AND THE CALABARZON

REGION

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