Ayala Realty hikes capital

The Securities and Exchange Commission (SEC) has approved the increase in capital stock of Ayala Realty Development Corp. from P20 million to P2 billion.

SEC documents show that of the P1.8 billion capital hike, P444.8 million has been subscribed by parent firm Ayala Land Inc. (ALI) in the form of real estate property.

The shares to be issued in exchange for the land to be acquired from ALI will be held in escrow by the SEC and shall be released only after proof of transfer of ownership in the name of Ayala Realty is presented to the commission within 90 days from date of approval of the application.

ALI reported a 7.6 percent growth in its net income last year to P2.7 billion, driven by revenues from its rental operations.

The company’s leasing portfolio remained robust with a 7.8 percent increase in rental revenues to P3.6 billion, bringing total revenues beyond the P14 billion mark or an increase of 19.7 percent.

The bulk of ALI’s leasing revenues continued to be driven by the success of its mall operations, with Ayala Center (Glorietta and Greenbelt) maintaining a high occupancy rate of 95 percent.

In 2003, ALI continued to tap the underserved demand in the middle-income residential segment through wholly-owned subsidiaries Laguna Properties Holdings Inc. and the recently created Community Innovations Inc. These companies combined for P2.5 billion in revenues or 18 percent of total.

The company, through CII and LPHI, offers new residential projects to the attractive middle-income market.

This year, ALI expects to break ground on the 200,000 square meter North Triangle Commercial Center in Quezon City in 2004. Phase 1 of the Market! Market!, located next to Fort Bonifacio Global City, will be completed later in the year.

Development will also commence on a residential enclave being planned for a 8.5-hectare lot in Fort Bonifacio area, a joint venture with the Bases Conversion Development Authority.