MANILA, Philippines – Ayala Land Inc. and Aboitiz Land Inc. are investing P3 billion this year to kick off the development of a new city center in Cebu, their first real estate project together.
Aboitiz Land chief executive officer Andoni Aboitiz said the two firms are currently finalizing the masterplan for the project and intends to unveil it within the year.
“We’re in the process of planning. Target is to launch the estate itself sometime this year,” Aboitiz said.
Aboitiz said the first phase of the project which would require an investment of about P3 billion includes a residential and commercial component.
“Part of the launch will be a condominium project and start of construction of the mall component. We hope to launch the first condominium project this year and along with that is the launch of the commercial development,” he said.
Last year, the property unit of the Aboitiz family signed a 50-50 joint venture deal with the property arm of the Ayala conglomerate to embark on the development of a 15-hectare city center in Brgy. Subangdaku, Mandaue City in Metro Cebu.
The deal is expected to bring together Aboitiz Land’s real estate experience in Cebu and ALI’s expertise in developing masterplanned communities.
Aside from upcoming launch of the joint venture project in Cebu, Aboitiz said the company would pursue this year the expansion of the 485-hectare Lima Technology Center, a PEZA-registered industrial park in Lipa, Malvar in Batangas.
“We are right now developing the 150 hectares that we purchased last year and we are in the process of acquiring another area. We are closing another 150 hectares that give us several years of inventory,” Aboitiz said.
Aboitiz Land last year acquired full ownership of Lima Land Inc. after buying out Marubeni Corp.’s 40-percent stake in the Batangas-based Lima Land Inc.
Aboitiz Equity Ventures, the parent company of Aboitiz Land, is also teaming up with ALI in a powerhouse consortium along with SM Prime Holdings and Megaworld to vie for the P123.8-billion Laguna Lakeshore Expressway and Dike Project.
Aboitiz, however, said there have been no talks with Megaworld or SM Prime to work together on real estate projects.
Aboitiz Land has earmarked P5 billion for capital expenditures this year, mostly to support acquisition of more land.