Aboitiz, Ayala units pursue P2-B Cebu property venture

MANILA, Philippines - Aboitiz Land Inc. and Ayala Land Inc. are pushing through this year with their first real estate joint venture with an initial investment commitment of P2 billion.

Aboitiz Land president and chief executive officer Andoni Aboitiz said the two firms are set to break ground by next month for their new city center project in Cebu.

The project will be undertaken in three phases, with the initial phase costing P2 billion, he said.

“We will launch the estate in June, meaning the whole project. The residential will be developed first, probably towards the end of the year,” Aboitiz said.

The 15-hectare Cebu City center will consist of residential, retail and office components.

Aboitiz said the largest chunk of the estate would be for the mall component which will have Landmark as anchor tenant.

The project was earlier eyed for launching last year but was pushed to a later period.

 “We just encountered the normal planning delays, we spend a lot of time for tweaking,” Aboitiz said.

In 2014, 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 Barangay 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.