ALI boosts presence in Cebu, Cavite

MANILA, Philippines - Property giant Ayala Land Inc. (ALI) is beefing up its footprint in Taguig and Cebu, while expecting its acquisition of a beachfront property in Cavite to be closed soon.

The property arm of the Ayala conglomerate expects the Arca South development, the former site of Food Terminal Inc. (FTI), to be operational in 2016.

Fresh from selling P3.5 billion worth of lots in Arca South, ALI expects the launching of several residential, retail and office projects in the area early next year, ALI chief finance officer Jaime E. Ysmael said in a briefing.

“After a year or two, the building might be completed and there will be tenants already,” he said.

Last year, ALI won the bidding for the 74-hectare FTI complex in Taguig with its offer of P24.3 billion.

ALI allotted more than 50 hectares of Arca South for its own use. It has so far sold around seven hectares of the property to local firms that can develop the lots into residential, retail and hotel formats.

“What we did immediately was to identify a large parcel that will allow us to monetize what we paid,” Ysmael said.

“We also wanted people to come in early hopefully at a lower price so they can help us prime the area and start the developments there,” he said.

For its portfolio in the south, ALI is expanding Ayala Center Cebu with the addition of around 50,000 square meters of gross leasing area, allowing it to offer a bigger area for Rustans and a new set of al fresco dining options. The expanded retail space will start operations in November.

Ysmael said a residential tower, which will be completed in two to three years, will be developed on top of the mall’s podium.

A business process outsourcing building, Ayala Center Cebu Corporate Center, will also rise beside Ayala Center Cebu in 2015.

Meanwhile, Boulevard Holdings Inc. (BHI) of the Panlilio family announced that the May 10 target closing date for ALI’s property acquisition of a Cavite beachfront lot has been pushed back.

“Given the voluminous documentation plus all the required attachments, we shall necessarily delay this until all matters are digested propely,” BHI said in a disclosure.

“The assets under discussion have been with us for 43 years and parting with them requires robust personal belief and unrushed decision making,” BHI added.

Late last month, ALI announced that it is beefing up its resort holdings by acquiring some properties of BHI in line with its goal of doubling its landbank for tourism estates to 1,000 hectares in the next two to three years.

Due diligence for properties in Ternate, Cavite and Puerto Azul will be completed in the next four months.

BHI owns a vast landbank in Ternate, Cavite which includes the 3,000-hectare Puerto Azul complex. It also operates Friday’s Boracay and Friday’s Puerto Galera in Mindoro. The Panlilio family is keen on reviving Puerto Azul, which was once dubbed as “Asia’s Paradise Resort” and the “World’s Golfing Capital.”