Ayala Center targets to complete phase 2-B expansion by end- 2013

CEBU, Philippines - The Ayala Center Cebu (ACC) is set to open its biggest expansion project by December of this year, that will bring in sophisticated brands to Cebu, as well as the expansion of the Rustan’s Department store.

ACC division head Clavel Tongco said that the Phase-II-B project, which cost the company an investment of over P2 billion already, will have a three-floor Rustan’s Department store, and expanded size of Rustan’s Supermarket, as well as other signature brands that will add to Cebu’s ultimate shopping experience.

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

The four-story Ayala Center expansion will host the luxury brands, and other specialty shops, Polloso reiterated.

“We will be offering a lot of new things, new brands to the Cebuano market come December,” said Tongco in an interview.

Ayala Land Inc., president Antonino Aquino said that after the completion of the ACC expansion project, the company will be looking at more retail project opportunities in Cebu expressing the company’s bullish outlook for Cebu economy.

One probability is to set up a retail establishment at the Cebu IT Park, however, plans are still in the drawing board.

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.

In 2011, ACC registered a total revenue of P699.84 million, 11 percent higher than 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 merchandises offerings.

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

Likewise, Ayala Cinemas posted total revenues of P80.26 million, a 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 previous 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.

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)