MANILA, Philippines - Fresh from bagging a deal to develop the 60-hectare Plastics City in Valenzuela, property giant Ayala Land Inc. (ALI) is now boosting its commercial portfolio through a retail venture with the Tantoco family of the Rustan’s Group.
“ALI entered into a joint venture agreement with Specialty Investments Inc. (SII) to pursue opportunities in the Philippine retail sector,” ALI said in a disclosure to the Philippine Stock Exchange.
“The partnership with SII will enable ALI to support its mixed-use developments and, at the same time, grow its recurring income portfolio,” it added.
SII is a wholly-owned subsidiary of Stores Specialists Inc., one of the largest retail companies in the Philippines.
ALI is still exploring the possibility of operating retail shops in its malls, said Jorge Miguel T. Marco, head of corporate communications of ALI.
SSI owns exclusive rights to sell, distribute and market in the country a variety of brands from around the world.
Early, SSI executive vice-president Anthony T. Huang said the company will launch three new luxury brands this year.
SSI, the company behind Zara, Prada, Lacoste and Debenhams in the Philippines, has already completed talks with brand owners to launch new luxury goods in the Philippines.
SSI was created in 1987 to acquire, manage and develop exclusively the world’s top lifestyle brands. It claims to have the largest and choicest luxury upmarket fashion lifestyle portfolio through 72 brands and more than 250 free standing shops and boutique shops totaling over 250,000 square feet of retail space.
ALI, for its part, is one of the largest real estate conglomerates in the Philippines, with over eight decades of experience in the property development sector.
The company’s principal strength lies in its involvement in highly diversified business segments such as the development of high to low-end residential, commercial, office, hotel and resort properties.
ALI has earmarked P37 billion for its capital spending this year – its highest capex ever – mostly to go to residential projects followed by shopping centers and hotels.
ALI’s profits surged 31 percent to P2.1 billion in the first quarter as revenues climbed 17 percent to P12.4 billion due to double-digit increases across all five property brands.