Property giant Ayala Land Inc. (ALI) has entered into a joint venture agreement with three companies to develop a nine-hectare property in Davao into a mixed-use community estimated to cost an initial P2.31 billion.
In a disclosure to the Philippine Stock Exchange, ALI said it has forged an agreement with Anflo Management & Investment Corp., Pioneer Trading & Supply Co. Inc. and Davao Motor Sales Co. for the project.
The project will consist of retail and business process outsourcing (BPO) facilities to occupy 40,000 square meters and 20,000 sqm of space, respectively.
ALI said it would take a 67-percent equity in the project.
ALI, the property arm of conglomerate Ayala Corp., has lined up 33 new projects this year which include 27 residential developments throughout the country, several office buildings catering to the BPO business, the grand makeover of the Ayala Center, a regional mall in Pampanga and the expansion of existing malls.
It has programmed P16.2 billion for project and capital expenditures this year; about 55 percent of which is earmarked for residential developments, 24 percent for shopping centers, and the balance for corporate business, strategic land bank management, Visayas-Mindanao ventures support businesses and corporate capex.
ALI’s new shopping centers will add 250,000 sqm of gross leasable space to its portfolio. It is redeveloping the Ayala Center Glorietta mall area, which will entail the construction of new levels at the Glorietta area to accommodate more office spaces for BPOs.
The company is also planning to develop a portion of Ayala Center in the Makati business district into a luxury hotel complex in partnership with a Saudi-owned hotel and resort management company.
ALI is also venturing into the fast-growing retail market in Pampanga with the construction of a P2-billion mall in Angeles City, which will sit on a 9.3 hectare lot and offer 70,000 square meters in gross leasable space.
Its strategy is to tap new, attractive growth markets by expanding into new geographies, strengthening its distribution channels and creating a wide range of products across a broad set of price points.