ALI allots P16B for 2007 capex

Property giant Ayala Land Inc. (ALI) has earmarked P16 billion for capital expenditures next year to jumpstart projects that include the development of the Tri Noma shopping center in North Edsa, a shopping mall in Luzon, the expansion of Ayala Center in Cebu, and several residential projects.

ALI chief financial officer Jaime Ysmael said the 2007 capital budget will be roughly the same level as this year.

Aside from the above-mentioned projects, ALI will also pursue the construction of the retail component at Serendra in Bonifacio Global City and the expansion of Greenbelt 5 up to 30,000 square meters of gross leasable area.

Ysmael said the new mall to be set up in Luzon will rise on less than 100,000 square meters of land and will be similar to the Ayala Center in Cebu.

He said ALI will borrow at least P3 billion next year to fund maturing obligations.

Meanwhile, ALI president Jimmy Ayala said fund management firm ARCH Capital Management Co Ltd. will embark on a roadshow in Asia later this year to raise third-party capital and pursue investments in property markets in China, India and Thailand. It hopes to raise $125 million in funds.

Conglomerate Ayala Corp and ALI, its property arm, jointly invested up to $75 million in Hong Kong-based ARCH Capital.

The investment is part of the Ayala Group’s broader strategy to expand its presence and explore new growth opportunities overseas.

The investment was made through wholly-owned subsidiary, Ayala International Pte. Ltd, which has direct property investments in the United States and Asia, including Japan, Australia, Hong Kong, Thailand and Malaysia.

The Tri Noma, positioned as the entertainment and dining nucleus of Quezon City, is targeted for completion in 2007. Landmark Department Store has agreed to be the anchor tenant.

Tri Noma will also have a new public transport terminal to be developed in the depot site, which will make the commercial center a major inter-modal transport hub and public convergence point in Quezon City.

Positioned as a fashion lifestyle center, Greenbelt 5 will be opening its doors to the public in 2008 with 31,250 square meters of leasable space. The retail portion at Serendra, on the other hand, comprises 6,400 square meters and is being patterned after the Soho-Greenwich area of Manhattan.

The expansion of Ayala Center Cebu, on the other hand, will add about 13,500 square meters to the mall.

ALI is also planning to divest some of its real estate properties that are no longer considered strategic positions for the group. It has a total landbank of 4,159 hectares, consisting of four components: Makati (54 hectares), Bonifacio Global City (44 hectares), Canlubang (1,696 hectares and 2,365 hectares) in other parts of the country.

The company is considering selling 400 hectares of its existing landbank.

To broaden market reach and tap the growing market of overseas-based Filipinos, ALI will continue to launch new residential projects for the middle-income and mass housing markets and continue to roll out new phases in existing projects including Ayala Westgrove Heights, Ayala Greenfield Estates and Serendra.