The Ayala Malls Strengthens Retail Leadership through Mixed Use Developments

MANILA, Philippines - Ayala Land Inc.’s Ayala Malls Group continues to be in the forefront of exciting developments in the retail sector with the opening of the eight-level Glorietta 5 in Makati City and the $120-million UP AyalaLand TechnoHub in Quezon City, which is seen as the Philippines’ version of Stanford University-Silicon Valley.

The group will also open Marquee Mall in Angeles City, Pampanga and the San Lazaro Retail Community Center in Manila this year while Abreeza at the heart of Davao City has started site development and foundation works, marking Ayala Malls’ entry into Davao’s real estate scene.

The projects will allow residents of the nearby areas to live, work and shop in an area that can be navigated on foot, said Marivic Añonuevo, senior vice president and group head of the Ayala Malls Group.

Before mixed-used development became a trend and a buzzword in the industry, Ayala Malls was already ahead of its time with Glorietta. The company recently opened Glorietta 5 along Ayala Avenue, fresh from the success of Greenbelt, which has added a new wing.

“Glorietta 5, which opened in the last quarter of 2008, houses retail stores, restaurants and cafes and five levels of Convergys, a business process outsourcing call center. It is linked to Glorietta 4 by an air-conditioned underground tunnel,” said Añonuevo.

Even the basement parking of the entire Glorietta complex is seamlessly inter-connected for easier navigation.

Glorietta, which is also going through a major redevelopment, is an example of Ayala Malls’ expertise in mixed-use projects. The company’s mixed-used developments combine the basic ingredients for success: Proximity to major employers, university or entertainment functions, development as part of a master-planned site and an urban location.

The mall, which pioneered the zoning concept in the country, houses the most prestigious names in global retail, food and specialty brands. These include Rustan’s Department Store, Gap, Starbucks, Zara, Debenham’s, Mango, Bass, Nike and so many others. Glorietta has brought together the best brands under one roof such that even those who live as far away as Fairview in Quezon City and Alabang in Muntinlupa City would go all the way to Makati just to shop at their favorite stores or eat at the restaurant of their choice.

Añonuevo said that with the latest developments, Ayala Land continues to stay true to the company’s goal of reinforcing its retail strength in Metro Manila and beyond, and priming up other developments by providing retail support to tenants, merchants and residents.

“Glorietta’s redevelopment is part of the effort to help preserve Makati City’s pre-eminence as the country’s top business and financial district,” she said.

Myrna Fernandez, assistant vice president of the Ayala Malls group, explained that much of the success of Ayala Malls is in the careful planning of each project before groundbreaking actually begins.

“In the redevelopment of Glorietta, much effort was given to study the flow of people and vehicles. These are taken into consideration in the planning of the development. We are very conscious of ensuring that there is a natural and logical circulation both inside and outside the development,” she added.

Glorietta 5 houses many of the shops and restaurants affected by the ongoing redevelopment of Glorietta 1 and 2 but the look of the new expansion is so different that once you emerge from the tunnel connecting it to G4, it’s feels like being in a different mall. Even the stores have undergone changes. Somera Perfume Gallery, for instance, still sells the same perfumes and beauty products from the United States, Saudi Arabia and other parts of the world, but has adopted a more modern look.

“We are very proud that our tenants in Glorietta 5 have risen to the challenge by coming up with more contemporary interiors for their stores,” said Fernandez.

By the time the Glorietta redevelopment is completed in 2012, there will be a new hotel within the mall and more facilities for offices and an entrance along Pasay Road.

Ayala Land has also opened UP AyalaLand TechnoHub, a science and technology park that is envisioned to be the University of the Philippines’ mortars-and-bricks commitment to education, training and research excellence.

The techno park lies in an 11,500-hectare area along Commonwealth Avenue in Quezon City and houses high-value business process outsourcing and information technology and IT-enabled service locators including IBM Business Services, HSBC-Electronic Data Processing, Manulife Data Services Inc., Pointwest Innovations, among others in 10 buildings.

The park is also host to 29 retailers that address the needs of the locators’ employees and residents of the nearby areas. There are restaurants like Flapjacks, Red Kimono, The Old Spaghetti House, Yellow Cab and KFC. For coffee, there are Starbucks and Coffee Bean and Tea Leaf. There’s Switch for Mac products and Timezone for entertainment. Among the establishments opening soon are Reyes BBQ, Kannin Club, Razon’s, Blackbeard Seafood Island, Mr. Kebab, Figaro, Mini Stop and Bench Fix.

According to Añonuevo, the retail mix at UP AyalaLand TechnoHub addresses the needs of the consumers specifically those working in call centers and other offices with three shifts a day.

“We sat down with our locators and asked them what they needed. They told us they wanted 24/7 access to food and coffee. They also wanted a 24-hour convenience store,” she added.

The target market for the TechnoHub is not only its actual occupants but also students from UP and nearby schools, and residents, said Añonuevo.

She explained that locators at the techno park are open for research and on-the-job training by students from UP.

“It will also serve as a tech portal for young entrepreneurs in the science and technology field who will enjoy subsidized rent for two years until it is time for them to ‘graduate’ to give way to others like them,” added Añonuevo.

UP AyalaLand TechnoHub also hosts events related to science and technology, including a tech boot campfor students from UP and other schools.

Marquee Mall in Angeles City, Pampanga, another mixed use development by Ayala Land, will open this year. Like all Ayala Malls, it will feature an activity center and lush landscapes and “indoor shopping with an outdoor feel,” said Rowena Manhit-Tomeldan, vice president and chief operating officer of the Ayala Malls Group.

Located beside Alveo, a residential project of the company, Marquee will host top local and foreign retailers, including Wilcon, Fully Booked, and Friday’s while its anchor department store and supermarket will be Metro Gaisano.

Tomeldan said a stronger retail presence is not just a trend in all Ayala Land developments. “Market-based research is always conducted to tailor-fit every development for its end-users,” she added.

At the UP AyalaLand TechnoHub, where people work in shifts, the requirements are food and coffee on a 24-hour basis. Employees also need places where they can relax, such as a spa, beauty salon and a gaming center.

“Ayala Land has always built integrated communities,” said Catherine Bengzon, senior division manager for Ayala Malls Group.

Bengzon said another development to open this year is the San Lazaro Retail Community Center or Vertex, which will feature residential and office spaces and commercial establishments for the convenience of tenants and other occupants.

“The complex is developed by Ayala Land Businesscapes, a business unit of Ayala Land Inc., and the Manila Jockey Club Inc. of the Reyno family. It will have two BPO office towers that will house call centers, IT-related enterprises and other offices,” said Tomeldan.

A series of residential condominium and townhouse developments by Ayala Land subsidiaries — Community Innovations Inc. and Avida — will offer a range of units plus the array of restaurants, retail and other services.

“The development is within walking distance to the University of Sto. Tomas and Chiang Kai Shek College and within commuting distance to the University Belt,” Añonuevo pointed out.

Another exciting development is Abreeza, Ayala Land’s first foray into the Davao real estate market, which is in partnership with the Anflogroup.

The project will be developed on a 10-hectare property along JP Laurel Avenue and is near major schools and universities, private and government offices and banks. It will be the first integrated and distinct mixed-use development in Davao City and will combine a superior retail mix and office buildings with 24/7 amenities and utilities.

The Ayala Malls Group has always prided itself on developments that are innovative. The most recent testament to this is the company having won three awards from the International Council of Shopping Centers, which recognized and honored the world’s most cutting-edge properties, innovative solutions and creative responses to market trends, as well as outstanding examples of design and development throughout the world. The award-giving body said Ayala Malls is known for innovative retail developments, creating well-planned lifestyle centers, and building beyond commercial spaces. The company received top recognition under the categories of Design & Development and Marketing.

Añonuevo said the company’s main priority in every development is addressing the needs of its end-users, its tenants and residents.

“The company always looks at the bigger picture because for every new development, the market’s needs and wants are always different from the last one,” she added.

* * *

The visuals are renditions as of printing time and may not accurately represent the development. These are subject to change without prior notice.