ALI lines up new residential projs for mid-income buyers

Property giant Ayala Land Inc. (ALI) has lined up various projects next year to broaden its market reach and tap the growing market of overseas-based Filipinos.

In documents submitted to the Securities and Exchange Commission, ALI said it will introduce new residential projects for the middle-income and mass housing markets and continue to roll out new phases in existing projects including Ayala Westgrove Heights, Ayala Greenfield Estates and Serendra.

"As the company builds up its product portfolio across a wider market, it will continue to put emphasis on cost efficiency to preserve margins and deliver the best value for money for its customers," ALI said.

ALI said the new product offerings will be complemented by intensified sales and marketing efforts to attract more clients.

To tap available market opportunities, ALI started the development of the 200,000 square meter North Triangle Commercial Center in Quezon City in July 2004. The project is slated for completion by 2007.

Plans are also being finalized for further redevelopment of Greenbelt in Ayala Center.

In the office leasing segment, ALI is planning to develop more build-to-suit office buildings outside the Makati central business district. It completed People Support Center in April 2005 and expects to complete Convergys and Infonxx Building.

ALI plans to issue P252 million worth of small denominated bonds at 100 percent of face value. The bonds will carry a guaranteed interest on principal amount at the rate of five percent per annum.

The offering is mainly targeted to benefit the low-to-middle income market segment, particularly those who avail of traditional bank products such as savings account or time deposit.

ALI’s objective is to encourage the low-to-middle income market segment to save sufficient funds to enable them to own real estate property in the future.

To make the bonds more affordable to the target market, the bonds shall be issued in a series and the different series of the bonds shall be issued against monthly payments by the bondholders over a period of 36 months.

BPI Capital has been tapped as issue manager for the issue.