ALI to issue P1-B shares for property, asset swap
Leading property developer Ayala Land Inc. (ALI) has approved the issuance of up to P1 billion worth of common shares in exchange for properties or assets.
In a statement to securities regulators, ALI said its board of directors has approved the allotment and subsequent issuance of up to one billion common shares with an aggregate par value of P1 billion to raise funds for the acquisition of properties and assets.
ALI’s property acquisition moves also include the issuance of equity or equity-linked instruments, the price, terms and conditions of which shall be determined by the board of directors based on prevailing market conditions or on agreements negotiated.
ALI expects its capital expenditures to reach P24.3 billion this year, higher than the P15.2 billion spent in 2007. The bulk of the programmed capital budget (roughly 42 percent) will go to residential developments followed by office buildings catering to the business process outsourcing industry (30 percent) and shopping malls (14 percent).
Funding will come from a combination of debt and cash generated from pre-selling activities.
ALI said the redevelopment of the
For the next five years, ALI is targeting an area of around 500,000 square meters for lease to the BPO industry.
Other new projects include the development of a luxury hotel in partnership with Dubai-based Kingdom Hotel Investments, to rise on a 7,377-square meter lot on
The complex will consist of the 300-room Fairmont Hotel, a 30-suite Raffles Hotel, and 189 Raffles-branded residences. It is slated for completion by 2011.
ALI posted a net income of P4.39 billion last year, up 13.44 percent from the previous year.
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