MANILA, Philippines - Property giant Ayala Land Inc. (ALI), which first made its name by building the Makati central business district (CBD), is spending P20 billion for an entertainment center in the country’s financial capital.
The 21-hectare Circuit Makati, formerly the Sta. Ana racetrack, will complete ALI’s mixed-use offerings in Makati amid the development of new business districts, the company’s top official said.
“We will be able to provide a very critical element that will be completing the story of Makati,†ALI president Antonino T. Aquino said in a briefing.
“Circuit is ALI’s 21-hectare integrated, mixed-use development anchored on entertainment experiences that brings together ALI’s various product lines — Alveo for residential, Ayala Malls and offices, and Ayala Hotels,†Aquino said.
Circuit Makati forms part of ALI’s P60-billion investment for six districts under its redevelopment program to maintain the competitiveness of the Makati CBD.
“The Circuit will be the entertainment center of Makati,†Aquino said, adding that it will be a dynamic urban hub in five years’ time.
Components of Circuit Makati are residential towers, office space, a shopping mall, a performing arts theater, events ground with a football field, and a lifestyle hotel.
Aquino said the property giant will start most of the project’s components in the next two years.
By 2016, around 80-90 percent of the property will be utilized for permanent or interim use that includes parking lots and pop-up food trucks, said Meann Dy, group head for ALI’s Strategic Landbank Management Group.
Specifically, the Circuit theater will have a capacity of 1,500 seats while the 600-meter Circuit Lane is an interactive walk with retail shops and restaurants.
Aquino said ALI will be introducing the “black box†concept that will be a venue for exhibits, music recitals, comedy shows, cocktail parties, product launches and workshops.
Circuit Makati will also have a two-hectare events ground for outdoor activities like football and skating.
ALI is already in talks with an international football club to put up a football school in the events ground, Aquino said.
For the commercial segment, ALI will build a mall with 45,000 square meters (sqm.) of gross leasing area (GLA) and an office space with 30,000 sqm. of GLA.
ALI will spend P1.5-2 billion for a 250-room lifestyle hotel that will carry the Seda brand.
ALI will also launch an Alveo residential tower next month, said Alveo Land president Robert Lao.
“The investment per tower is P2.5 billion,†Lao said, adding that the first condominium building will have 400-450 units in 40 storys.
The development of Circuit Makati will be spread out to 15-20 years, Aquino said.
For instance, there is a plan to have a total GLA of 100,000 sqm. for office space that will cater to the outsourcing sector, said Cora Dizon, head of ALI’s Commercial Business Development and Strategic Planning Group.
For the residential segment, ALI is looking at launching one tower per year to reach 8-10 towers in the next 10 years, Lao said.
While other conglomerates like JG Summit Holdings Inc. and SM Investment Corp. have joined the fray in the gaming segment particularly for casinos, ALI is focusing in its core business.
“There is no plan of gaming in this area. It will be more of family entertainment concepts,†Aquino said.
“On our side, we can sustain the high growth trajectory with the type of business we are currently in right now,†Aquino said.
In the nine months to September, ALI’s earnings reached P6.62 billion, up 27 percent from P5.23 billion a year ago on the back of the strong performance in all its business lines.