ALI allots P7B for new township project in Bulacan

MANILA, Philippines - Leading developer Ayala Land Inc. (ALI) is expanding its footprint north of Metro Manila by investing almost P7-billion for a township project in the largest city in Bulacan province.

The 98-hectare Altaraza, the first masterplanned township project in San Jose Del Monte in Bulacan, forms part of ALI’s efforts to seize expansion opportunities in the north, an executive said.

“With a total investment of P6.8 billion over five years, ALI brings its unparalleled expertise in developing masterplanned communities to Altaraza,” the company said.

“We are now going even further north,” ALI president and CEO Antonino T. Aquino said in a briefing. Aquino said northern Metro Manila is an important element in ALI’s plan to create an estate or township project in every major location in the country.

Altaraza, which is a partnership between ALI and Araza Resources Corp. of Gregorio Ma. Araneta III, would benefit from infrastructure projects like MRT-7, C6 road and inter-modal transport systems.

“Historically, the bias has been Makati, Bonifcaio, Alabang and Nuvali,” Aquino said. However, projects north of the metropolis like in Quezon City and Bulacan represent major developmental opportunities, he said.

To date, ALI has six projects in Quezon City that includes the Vertis North business district, UP Town Center, UP Technohub and Fairview Terraces.

The property arm of the Ayala conglomerate recently broke ground for Avida Settings, Amaia Steps and healthcare facility QualiMed, three property components in Altaraza.

ALI set aside 12 hectares to sell more than 400 house and lots under the affordable brand Avida, while economic housing unit Amaia would put up 1,400 units in numerous mid-rise residential condominium buildings.

QualiMed, a joint venture between ALI and the Mercado General Hospital Inc., would create a 100-bed hospital in Altaraza.

The first phase of Altaraza would involve 100 hectares of mixed-use development that includes 50 commercial lots, 7,800 square meters for the Central Plaza, a five-hectare Rain Garden and Colegio San Agustin, Aquino said.

In general, the property market is still poised for growth backed by strong fundamentals like the large housing backlog, Aquino said.

“From a fundamental standpoint, there still has a huge demand that needs to be filled up,” he said.

The listed property development arm of the Ayala conglomerate is jacking up its capital spending to P70 billion this year as it commits to launch 78 projects worth P142 billion to ensure continuous growth in the coming years.

In 2013, ALI’s profits surged 30 percent to a record P11.74 billion from P9.04 billion in 2012. Hence, the property firm already breached the income target under its 5-10-15 program that was launched in 2009 amid the global financial crisis. It is a five-year plan ending in 2014 that aims to boost net income of ALI to P10 billion and return on equity to 15 percent.