Ayala Land allots P1 billion for socialized housing

MANILA, Philippines - Property giant Ayala Land Inc. (ALI) is infusing P1 billion over the next three years to undertake the development of socialized housing units in line with efforts to boost sales and meet the growing housing backlog in the country.

In a disclosure to the Philippine Stock Exchange, ALI said its board of directors approved the establishment of a new wholly-owned unit to pursue residential development operations targeting the country’s economic housing segment. It would be separate and distinct from ALI subsidiaries Ayala Land Premier, Alveo Land and Avida Land.

ALI said the initial capitalization will cover an initial run of six projects in select industrialized rural areas in southern and central Luzon where end- user demand is expected to be strong. The money will also be used to fund operating expenses and the acquisition of potential landbank areas.

“The formation of this new subsidiary supports our strategy to expand our market beyond what we currently offer and serve a broader segment of the population that demands more quality residential developments,” said Antonino T. Aquino, president and chief executive officer of ALI.

He said the product offerings will comprise mainly house and lot starter home packages with prices ranging from P600,000 to P1.25 million per unit. The new subsidiary expects to launch its first project in Laguna within the first quarter of 2010.

ALI said it expects to make a significant impact on the economic housing segment with an approach that will offer attractive designs and high quality in a functioning and evolving community at a price point that is affordable for more of the country’s young and emerging households.