Ayala Center occupancy rate up 97.3% in 2011

CEBU, Philippines - The vibrant economic landscape in Cebu has brought about an encouraging performance to the one of the City’s largest shopping malls, Ayala Center Cebu (ACC), with an average occupancy rate posted at a high of 97.3 percent in 2011.

ACC posted total revenues of P699.84 million last year, an 11 percent increase compared to its revenues recorded in 2010.

According to Cebu Holdings Inc. (CHI) chief finance officer Enrique B. Manuel Jr., the mall’s encouraging performance in 2011 was brought about by the higher lease occupancy, higher sales and rent per square meter.

Net operating income likewise posted a growth of 13 percent vis-a-vis 2010.

The company that operates the ACC’s Active Zone, the Cebu Leisure Company Inc. (CLCI) also reported significant per square meter growth at nine percent in 2011, compared to the previous year.

Manuel said that CLCI’s growth can be attributed to its unique sports and wellness merchandise offerings.

Food Choices, the food court facility of the mall also realized a 15 percent increase in sales per square meter as against 2010.

Likewise, Ayala Cinemas posted total revenues of P80.26 million, which is three percent higher than the prior year’s P77.87 million.

At the end of 2011, CLCI generated total revenues of P130.42 million, seven percent higher than last year’s P122.40 million.

Net operating income is also 21 percent higher than last year due to the high performance of the Active Zone.

Another retail arm of the company located at the Cebu IT Park, called “The Walk” also contributed total revenues of P21.77 million, which is 12 percent higher than 2010’s P19.46 million.

Lease occupancy rate at “The Walk” also rose by 98.3 percent, five percentage points improvement from 2010’s occupancy rate of 92.8 percent.

“Cebu, being a growth center, has become a major retail destination in the south. Ayala Center Cebu remains a market leader within its primary area across the ABC market with consistent and significant increase in shared from gated villages and office workers,” said Manuel.

He added that as more office buildings materialize in Cebu’s premier district—Cebu Business Park and IT Park, the steady incline of mall visits from the working segment is expected to persist.

CHI, the company that developed ACC ended 2011 with a record net income of P424.33 million, four percent higher than previous year’s record performance of P406.20 million.

With the recent business being the company’s biggest contributor, the company has embarked on a major expansion of the mall.

CHI president Francis O. Monera said that upon completion of the new ACC expansion by next year, this will bring in a third of the mall’s current gross leasable area or a total of 36,000 square-meters.

The new ACC expansion will house luxury brands and new concepts, introducing another level of lifestyle options for the Cebuano and regional market.

“This [expansion] will strengthen the mall’s position as the premier lifestyle and entertainment destination in the region,” Monera concluded. (FREEMAN)