Ayala Group’s S’pore unit to expand in US, key Asian markets

Ayala International Pte. Ltd. (AIPL), the Singapore-based property investment arm of the Ayala Group, is setting aside $25 million for its continued expansion in the US and key markets in Asia as it positions itself to be a regional player in the property sector.

AIPL president Charles Cosgrove said the company intends to expand its property segment coverage in the US, widen its involvement in its Thai business and pursue new initiatives in Shanghai, China.

AIPL last year joined Narai Property, a family-owned company in Thailand, to develop three condominium blocks consisting of 208 units on Ratchadapisek Road in Bangkok.

In the United States, AIPL added six investments, two of which with new partners. Some of these new investments also marked the company’s transition into taking a co-developer role. The company had also entered into an alliance to seek opportunities in the shopping centers.

"The US housing market has been very healthy. We are looking at building new businesses in Western and North America," Cosgrove said.

Cosgrove said AIPL has invested in retirement homes in Utah which the group considers a long-term asset.

He said AIPL will continue to forge partnerships to access other markets and mitigate risk. "We favor partnerships because through these partnerships we have faster access to markets, manage our risk/capital allocation by being able to diversify further in terms of projects and can execute together with our partners without incurring excessive overhead. One critical advantage these partnerships give is that they provide a platform from which we can build a structure for club investing over the longer term," Cosgrove said.

AIPL’s investments are focused on a variety of real estate products in countries within the region, particularly Singapore, Malaysia, Indonesia, Hong Kong and Thailand. Of its $60 million total portfolio, 42 percent has been invested in Singapore, 31 percent in the US, Indonesia (10 percent), Hong Kong (eight percent), Japan (four percent), Thailand (three percent), and Malaysia (two percent).

The Ayala Group’s property development vehicle for overseas markets, posted a net income of P377 million last year, up 56 percent from the previous year.

This was boosted by the gain on sale of Grosvenor Place in Hong Kong as well as several apartment units in US, Tokyo and Kuala Lumpur. The increase was also attributed to lower operating expenses as the company streamlined its organization to reduce headcount.