ALI to build P3.2-B seaside resort in Morong, Bataan

Property giant Ayala Land Inc. (ALI) is spending an initial P3.2 billion for the establishment of a high-end seaside residential resort community in Morong, Bataan, marking its first foray into leisure development.

The project, dubbed as Anvaya Cove, will rise on a 320-hectare property owned by Subic Bay Development & Industrial Estate Corp. (Sudeco) controlled by the family of businessman Carlos De Leon.

Under the agreement, the De Leon family will provide the land while ALI will develop the project, which is envisioned as the next center for tourist attraction with the imminent conversion of the property into a world-class resort.

The masterplan for this development includes a beachclub, a nature camp and set of trails, a resort-spa complex, a water sports pavilion, a recreational lagoon for boating and fishing, and a chapel.

Marivic Anonuevo, head of ALI’s Leisure and Lifestyle Communities Group, said the project will have three clusters with the first one expected to cost P3.2 billion. The first phase will house a beach, nature club and golf course and will be completed by 2006 or 2007.

Anonuevo said the project, located just a few minutes away from the southern gate of the Subic Bay Metropolitan Authority, will be developed over a period of five to 10 years. The other clusters will comprise the development of residential units or vacation homes priced at between P6,000 and P10,000 per square meter.

ALI president Jaime I. Ayala said the Anvaya Cove is in response to customers’ growing desire for high-quality leisure products, primarily weekend and holiday residences in a resort setting. It is also in line with the company’s strategy of expanding presence in underpenetrated segments.

"We feel that the market is big enough. Our financial health puts us in a good position to take advantage of new opportunities in the market as we seek continued growth," Ayala said.

The site is one of the few beaches in the country with crystal-clear and unpolluted water and fine white sands. Once completed, Anvaya Cove is expected to be the biggest resort in the country.

Apart from Avaya Cove, ALI will start the construction next month of a new mall in the 200-square meter North Triangle depot in Quezon City. The mall, targeting the middle-to upper-income market, will be developed over a 27-month period. "The mall will be a combination of the Glorieta and Greenbelt shopping centers. We hope to open it by 2007," Ayala said.

ALI said it is now close to completing funding requirements for this project. It recently raised $65 million from the sale of its economic interest in the Metro Rail Transit Corp.

ALI has earmarked P13.6 billion for its capital expenditures this year to take advantage of the upturn in the property market. The capital budget is 68 percent higher than the money set aside last year. Other projects lined up for the year include two buildings catering to the burgeoning business process outsourcing market. By the end of 2005, ALI expects to have 45,000 square meters leased to call center firms Covergys, PeopleSupport and Accenture.

ALI chairman Fernando Zobel de Ayala said the company is eyeing to expand its presence in this sector in Bonifacio Global City, areas in Metro Manila outside of Makati and in Cebu.

As of end-December 2004, ALI had a total landbank of 3,600 hectares, sufficient for development in the next five to 10 years. Of the 3,600 hectares, 42 percent is wholly-owned by ALI while the balance of 58 percent is coverd by joint venture agreements with landowners.

ALI reported a net income of P3.01 billion last year, 11 percent higher than the previous year’s P2.71 billion. The increase was mainly due to improving market conditions and the launch of high quality and innovative products.