ALI raises 2012 budget by P10 billion

MANILA, Philippines - Property giant Ayala Land Inc. (ALI) is setting aside an additional P10 billion on top of the original 2012 budget of P37 billion, according to a top company official.

ALI president Antonino Aquino said the additional P10 billion, which will be funded by proceeds from its recent P13.6-billion top-up equity placement and P15-billion bond issue, will largely go to the company’s aggressive landbanking activities.

The company has set aside P36 billion over next two to three years to beef up its landbank to ensure continued growth. The company wants to double its landbank in the next five years from the current 4,000 hectares.

The additional amount also includes ALI’s projected investment this year for its strategic alliance with the Ortigas Group led by Ignacio R. Ortigas.

This ramps up ALI’s total capital spending to a record P47 billion this year as it aims to sustain its high growth trajectory in the long term.

ALI, through its five residential brands, aims to have significant presence in each key city in Metro Manila and replicate the success of its huge master-planned projects in all parts of the country.

ALI serves the high end market through Ayala Land Premier while it also serves the middle-income, affordable and economic housing segments through Alveo Land and Avida Land, respectively. Last year, it branched out into the socialized housing segment via BellaVita.

For this year, ALI is launching 67 new projects with an unprecedented potential sales value of around P90 billion.

Bulk of the new developments will comprise 50 residential projects, equivalent to about 25,000 units across its five brands, to cater to the different segments of the local economic pyramid or  25 percent more than the 20,000 units rolled out in 2010.

ALI plans to penetrate new areas like Cavite, Bulacan, Rizal, Pampanga and major cities in Visayas and Mindanao.

In its commercial leasing business, the group intends to duplicate this strategy of geographic expansion, product diversification and market broadening as it aims to double its gross leasable area by 2014.

It will open three malls this year, including the first phase of the Ayala Center redevelopment, Harbourpoint in Subic and the Centrio mall in Davao.

ALI launched a total of 141,000 sqm of shopping center gross leasable area (GLA) last year, including the expansion of Ayala Center Cebu, renovation of San Antonio PlazaArcade in Makati, the retail component of Ayala Northpoint Technohub in Negros Occidental , Fairview Terraces in Quezon City and The District along Daang Hari in Cavite – which are expected to come on stream in the next couple of years.

It also has in the pipeline some 365,000 sqm of commercial leasing GLA for both office and shopping centers and two more Kukun hotels.