Ayala Land plans P 40-B projects

Ayala Land Inc. is launching P40 billion worth of residential projects this year targeting “all market segments.” The projects include those that would be unveiled under the company’s newly created subsidiary Amaia Land Corp., a top company executive said.
Ayala Land chief finance officer Jaime Ysmael said Amaia Land will unveil  next month Amaia Scapes, a 20-hectare project in Laguna. To offer 2,000 units, the development also marks the company’s first foray into the low-cost housing segment. Homes in this category cost between P600,000 and P1.2 million each.  “We will be aggressively launching projects this year. Just for the residential segment, we will be having 28 projects [with] 9,200 units of new inventory,” said Ysmael.
Of these unit inventory, 15 percent are from high-end subsidiary Ayala Land Premier, 22 percent from Alveo Land for the middle-income segment and the balance from Avida Land and Amaia Land.
Ayala Land plans to spend a total of P27.17 billion this year. This is much higher than the P16.2 billion spent in 2009. The bulk of the fund allocation will be used in the company’s expansion program which includes the construction of new malls, office buildings and hotels.
To support this capital spending agenda, Ysmael said the company may raise up to P10 billion through bank loans and bond sale in addition to internally generated cash.
Ysmael said this is on top of potential funds that can be raised through the Real Estate Investment Trust Law. The company is currently awaiting the issuance of the implementing rules and regulations expected before the second half of the year.
Ayala Land is also set to launch a P2.5-billion mall in Cagayan de Oro City to be developed on a 3.2-hectare property. Another mall will be launched in Subic, Olongapo which is part of a P3-billion plan to develop a 7.5-hectare property there.
The company also expects the completion of its shopping Center in Davao City called Abreeza in 2011, said Ysmael.
Ayala Land also plans to launch two hotels, one included in the P20-billion Ayala Center redevelopment in Makati City, and the second in Fort Bonifacio City to be run by Ayala Land.
Ysmael said the Fort Bonifacio development will feature a boutique-style hotel offering 175 rooms priced at under $100 per night on average. Its construction will start by the second half of 2010.
The business process outsourcing (BPO) sector also remains attractive for the company. Ysmael said Ayala Land plans to complete BPO projects in Bacolod,  Baguio,  Cavite and Iloilo. It is also expanding BPO operations in the Nuvali project in Laguna as well as the one in Cebu City.
Ayala Land’s net income dropped 16 percent last year to P4.04 billion due to a 10-percent dip in revenues to P30.5 billion. The company’s net income in the last quarter of 2009 rose 16 percent to P1.12 billion.