MANILA, Philippines — Property giant Ayala Land Inc. (ALI) aims to further expand its presence in Malaysia through its majority owned subsidiary Avaland Bhd.
Robert Lao, ALI senior vice president and Avaland board of directors member, told The STAR that the group is looking at developing more projects in Malaysia.
“The real estate business in Malaysia is more stable,” he said.
Lao said Avaland currently has a number of ongoing residential projects.
ALI is the ultimate holding company and major shareholder of Avaland with an indirect interest of 66.25 percent, through the shares held by Regent Wise Investments Ltd.
It purchased a majority stake in Avaland, a company listed on the main market of Bursa Malaysia, in 2018.
Avaland has since undergone a comprehensive organizational restructuring exercise and refocused its core business on property development.
The company is currently looking to further strengthen its position and ensure sustainable growth.
In its third quarter 2024 report, Avaland said the group is actively exploring new land acquisition opportunities to expand its landbank and bolster future earnings.
Avaland said it remains cautiously optimistic of its prospects with the robust demand for the group’s projects amid its strategic location, strong value propositions, and ability to meet the market’s requirements.
It said the group’s existing landbank of 194.4 acres across the Klang Valley provides earnings visibility for the next 10 years.
Late last month, Avaland announced it has entered into the recurrent related party transaction of a revenue or trading nature (RRPT) with ALI for interest incurred on advances amounting to RM12.75 million for the period covering 2024, which has exceeded the prescribed threshold of one percent.
Avaland said the RRPT is necessary for the day-to-day operations of the group and is intended to meet the business needs on the best possible terms.
“The RRPT is at arm’s length and on normal commercial terms which are not more favorable to the related party than those generally available to the public. The transaction is not detrimental to the interest of the minority shareholders of the company,” it said.
ALI’s diverse portfolio in the Philippines spans residential, mall, office, hotel, resort and industrial logistics projects across 53 estates nationwide.
For the first three quarters of 2024, the company’s earnings grew by 15 percent to P21.2 billion, driven by resilient property demand and consumer activity.