Rustan's to acquire space in Ayala's annex building

The Ayala Center Cebu (ACC), through its developer Cebu Holdings Inc. (CHI) has finalized its negotiation with Rustan's Supermarket to acquire the first floor of the mall expansion to be opened by ACC soon.

About P800 million is allocated for a three-story expansion of the Ayala Center Cebu (ACC). The construction already started a few months back.

CHI president and chief executive officer Rene Almendras said Rustan's Supermarket will be the anchor supermarket store of the annex Ayala Center that will be interconnected with the existing shopping mall.

He assured though, that the entry of Rustan's Supermarket to Ayala Center will not compete with its existing Supermarket tenant, the Metro Gaisano, as Rustan's has different and distinct market followers.

Rustan's Supermarket, which used to locate at Mango Avenue, has ended its contract with the building owner, and closed shop early this year.

The opening of the Rustan's Supermarket at Ayala Center's new annex building will also provide easy access for captured clients especially that Rustan's Department Store is located inside the ACC mall.

The second and third floors of the new shopping mall expansion will bring in high-end shops that offer premium and signature brands, as well as new business concepts that have potential to hit the market, he said.

CHI is investing another P1 billion pesos in Cebu in the next three years, primarily to boost its mall operations, and residential development projects here.

Large part of the investment will go the upgrading of its mall facilities, including the re-construction of Ayala Lagoon area.

The ACC's 100,000 square-meter floor area will be expanded to accommodate more retail concessionaires and introduce more Food and Beverage (F&B), including entertainment joints to the Cebuano market.

"We are still following our original plan, to expand the mall," Almendras said the building will be installed in the parking area, currently utilized as parking lot for ACC and Cebu City Marriott Hotel.

Another 7,000 square meter will be added to the mall's lease-able area, especially the lagoon side, Almendras said.

Currently, the mall's over 300 commercial spaces is 98 percent occupied, excluding the available spaces for stalls and cart concept businesses.

Bringing in more foreign brands to the Cebu market is one of the growth opportunity of the mall, in which availability of boutiques offering signature brands from Asia, United States, and Europe could improve Ayala Center's magnetic charm to Cebuanos and visiting tourists.

CHI ended the year 2005 with a sweeping 30 percent net income growth to P117.3 million from previous year's P90.6 million. ACC is one of the biggest revenue contributors of the publicly listed CHI.