Ayala invests P12.7 billion for Cebu mall projects

CEBU, Philippines — Ayala Land Inc. (ALI) is investing P12.7 billion to expand and upgrade its malls in Cebu, betting on strong consumer demand in the country’s fastest-growing urban market outside Manila.

The property arm of the Ayala Group is committing P10.5 billion to enlarge Ayala Center Cebu and develop Ayala Malls Gatewalk in Mandaue City, while allocating another P2.2 billion for renovations at Ayala Center Cebu and Ayala Central Bloc.

The moves form part of ALI’s previously announced P17.5 billion national mall upgrade program running from 2025 to 2028.

Paul Birkett, chief operating officer of Ayala Malls, said Cebu’s robust economic fundamentals made it a priority for the group’s next growth phase.

“Cebu is the fastest-growing GDP area in the country with high employment and disposable income. We need to deliver products worthy of that market,” Birkett said in an interview.

He added that Cebu would receive investments on par with leading global retail destinations such as Bangkok, Dubai and London, calling the city “too important to settle for ‘good enough.’”

The renovation of Ayala Center Cebu—now 75–80 per cent complete—is slated for completion by end-2025, modernizing the decades-old mall’s aesthetics and functionality.

An adjacent expansion, covering 18,000 sq.m. of gross leasable area (GLR) and targeted for premium “bridge brands” and flagship stores, will be delivered by 2027.

Bridge brands refers to a retail and marketing term that refers to mid-market or “affordable luxury” brands that sit between mass-market labels and high-end luxury labels.

“We shouldn’t just give you second-rate versions of a store. Cebu deserves big, two-level flagships with international-standard design,” Birkett said.

ALI is also reimagining its malls as “third spaces” for social interaction, with entertainment and leisure zones to expand five-fold. Planned features include VR and AR attractions, gaming hubs, active play areas, and new lifestyle concepts beyond traditional cinemas and gyms.

New-to-market brands such as Bangkok-based fashion label Pomelo and Manila-grown beauty retailer Issy & Co. will debut in Cebu, alongside the promotion of homegrown Cebuano concepts to other Ayala Malls nationwide.

Meanwhile, Ayala Malls Gatewalk—scheduled to open in late 2026 within the 17.5-hectare Gatewalk Centrale estate—will house 55,000 sq.m. of leasable space and position itself as “the heart of fun in Cebu,” with a design-forward food hall, gaming zones and creative hubs.

“This is about building for the Cebuano market today, but with flexibility for what it will need 10 years from now,” Birkett said. “We don’t want people to have to fly to Manila, Hong Kong, or Singapore for the best retail experience—we want them to find it here.”

The expansion consolidates Ayala’s growing retail footprint in the Visayas, which includes Ayala Center Cebu, Ayala Central Bloc and the upcoming Gatewalk in Cebu, as well as Capitol Central in Bacolod and Shops at Atria in Iloilo.