ALI eyes expansion into China, SE Asia

MANILA, Philippines — Ayala Land Inc. (ALI) is looking to further expand in Southeast Asia, a move that will catapult the company as a regional player.

In a recent interview, ALI CFO, treasurer and chief compliance officer Augusto Bengzon said the company is looking at expanding in Asean countries and potential second-tier China cities.

“We are expanding across Asean. We see all these opportunities…Our focus is on the ASEAN region and potentially second-tier China cities,” Bengzon said.

He said the company’s preferred mode of entry is through a company which can provide ALI a platform for growth.

The company is already in Malaysia through a majority stake with a property company, MCT Bhd.

ALI, builder of homes, condominiums and developer of some of the country’s biggest mixed-use estates, is looking at similar deals in other ASEAN countries, Bengzon said.

He said this may happen “within the next three years.”

“We’re working on it. It should be sealed soon. We’re doing things today where we will see the output in three years,” Bengzon said.

Partnering with local companies is the easier route especially in the real estate business.

“We recognize that real estate is a very localized industry. You need local expertise so we’re looking at a platform for growth in ASEAN through a company or a local organization. Ideally, it is one with a land bank,” he said.

To support the company’s planned expansion in ASEAN and in the domestic market, ALI plans to tap the debt market again next year.

All these efforts will support ALI‘s target to hit its net income goal of P40 billion by 2020.

The company is steadily expanding outside the major cities in Metro Manila, toward the Mega Manila, Calabarzon and Central Luzon which account for 62 percent of the country’s gross domestic product.

ALI now has 25 estates, reinforcing its capability to create progressive communities and to position as the largest and leading developer of estates in the Philippines.

The property giant posted a P25.3 billion net income last year, up 21 percent. In the first half this year, the company posted a net income of P13.5 billion, up 18 percent year on year.