Ayala Cebu to start mall's phase 2 expansion by Q1

CEBU, Philippines - Ayala Center Cebu (ACC) is set to kick off with its major expansion in the first quarter of this year, the construction will cover the Phase 2-B project of the mall.

The Phase 2-B project will realize the construction of the extension of the mall, utilizing the South Surface Parking, that will incur Cebu Holdings Inc. (CHI) at least P2.8 billion.

After the completion of the newly built ACC PUJ Terminal fronting the Archbishop street, CHI president Francis Monera announced that the construction of the mall’s expansion will start immediately, and expected to be completed by 2013.

The four-story Ayala Center expansion will host the luxury brands and other specialty shops, including a provision of available renting space for the planned expansion of Rustan’s Department Store.

Bullish on Cebu’s sustaining retail industry, despite external problems, Monera said the mall will continue to offer the best of Ayala Malls for Cebu consumers.

So far, the Ayala Center Phase 2-B is the largest expansion activity done by CHI, aside from the building of The Terraces, and other mini-improvements and expansion programs it has embarked over the years.         

This year’s expansion will complete the original plan of ACC, however, some improvements were made in terms of design to conform to the changing preference and style of this generation’s shoppers, Monera said.

The new Ayala Center expansion will cover a space one-third to the entire size of the existing mall, offering a total leasable area of 36,000 square meters.

“Over the years, ACC has made some expansions to improve the mall’s total ambiance and facilities,” Monera said. In fact, the construction of the al-fresco style The Terraces was not part of the original master-plan.

In 2009, Ayala Center registered a 19 percent growth of its total revenue.

The shopping and leisure mall generated total revenue of P696.77 million, 19 percent higher than 2008 level.

According to Monera the mall’s growth amid the global crisis was due to the higher rental rate and sales per square meter and the operation of The Terraces.“

In the 4th quarter of last year, the mall launched the Active Zone, formerly the Ayala Food and Entertainment Center. This specialty zone provides more offerings for the growing interest of Cebuanos in fitness and having an active lifestyle.

The expansion of the ACC is just one of the few projects lined up for Cebu, by CHI, in partnership with its mother company Ayala Land Inc. (ALI). 

“Cebu’s economy is vibrant, relative to have CHI is doing, and the retail sector performing well. Also, Cebu is very attractive for BPO investors,” said ALI president Antonino T. Aquino in an earlier interview.

The construction of the ACC Phase II-B is part of the company’s P10 billion capital expenditure (capex) to build more projects in Cebu in the next five years. (FREEMAN)