Ayala Land Inc. looks to double its cold storage portfolio of 314,000 square meters (sq.m.) by 2025 under its warehousing unit Ayala Land Logistics Holdings Corp.
Speaking to shareholders yesterday, Robert Lao, Ayala Land Logistics chief executive officer (CEO), said the cold storage business will be beefed up by a 10,000-pallet facilities in two locations – ALogis Artico in Sto. Tomas, Batangas, and ALogis Artico in Mabalacat, Pampanga.
“Upon completion this quarter, each facility will add 5,000 pallet positions to our portfolio. By mid -2024, we will already have 20,300 pallet positions. We will further augment this growth by breaking ground for two more facilities within the year,” Lao said.
Lao said the new facilities – both set to open and in the pipeline – will be a boost to the company’s plan to be a significant player in the cold storage business.
“Ayala Land Logistics only entered the cold storage business in 2021. We are a relatively new entrant in the market with only three years of operations. At present, we have three facilities, all three being acquired facilities – two in Laguna, and one in Cebu. There is room for this business segment to grow even more given the growing demand from institutional market and sustained meat importations,” Lao said.
This is also aligned with forecasts the local cold storage capacity will grow by 8 to 10 percent per annum starting this year,” he added.
Lao said Ayala Land Logistics is positioned to take advantage of the country’s business environment.
Last year, the company launched its fifth techno park development, the 55-hectare Batangas Technopark in Padre Garcia Batangas
In 2023, the company started the construction of ALogis Mabalacat in Pampanga Technopark and its first build to suit facility in Cavite Technopark. Together, the two facilities will add 33,000 square meters of warehouse GLA upon completion, this 2024, Lao said.
Ayala Land Logistics is looking to spend P3.9 billion as capital expenditures for the year.
Meanwhile, Anna Margarita Dy, Ayala Land CEO, said the group expects to ride on the momentum of the 32 percent profit growth and 18 percent revenue growth posted last year.
“Our planning parameters do not include any boost from lower interest rates,” she said at Ayala Land’s shareholders meeting yesterday.
Dy said a number of “changes” in the business landscape is propping up the optimism.
“First, the current higher interest rates have affected demand in the mid-market or core residential markets, our Avida and Amaya brands. The sentiment there is improving and we expect a boost when interest rates improve. We have to be agile to take advantage of changing market opportunities,” she said.
Dy said Ayala Land has set projects on a push button mode.
“The land is ready, the plans are ready, the permits are ready and when the market starts to move, we can push the button and launch,” Dy said referring to its residential projects.
So far, about 80 percent of Ayala Land’s planned launches are in its premium brands, such as the Ayala Land Premier.
Dy said Ayala Land’s office occupancy rate is very healthy at 92 percent.
“ It’s a flight to quality and we continue to see demand for office space. We are cautiously growing our portfolio with the focus on winner sites and verifiable long term demand,” Dy said.
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