Ayala Land Inc. is looking to launch four estate developments this year to bring the portfolio to 54.
Without naming the location for the four new estates, Bernard Vincent Dy, Ayala Land president, said the economy’s prospects “will support our growth not only this year, but also for the foreseeable future.”
“This year, GDP is expected to grow between 5 and 6 percent. Consumption continues to be strong, OFW (overseas Filipino workers’) remittances continue to increase year- on-year.
BPO (business process outsourcing) and takeup of office space continue to improve,” Dy said at the company’s stockholders meeting Wednesday.
“We believe interest rates have peaked and inflation is starting to decline from the high levels that we saw last year. Given these favorable conditions, we anticipate renewed growth across all our business lines this year,” he said
Last year, Ayala Land launched two new estates – Areza in Lipa, Batangas, and Crossroads in Plaridel Bulacan.
Jaime Augusto Zobel de Ayala, Ayala Land chairman, said the company is looking to spend P15.2 billion for the initial development of the two estates.
“We believe that will spur economic activity in these emerging localities maximize synergies among our product lines, and enable us to deliver value to these local economies and their stakeholders,” Zobel said.
“As the country’s growth continues to gain momentum, we will accelerate the rollout of our large scale mixed use and sustainable estates,” he added.
AREIT Inc., Ayala Land’s real estate investment trust (REIT), is banking on the huge landbank of its mother company to drive growth in its portfolio.
Carol Mills, AREIT president, Ayala Land’s portfolio has a lot more to infuse into the company given its “impressive pipeline of potential offices, malls and even hotels that could be incorporated into AREIT as they stabilize.”
“After this year’s asset infusion, the malls and offices in Aries portfolio will only comprise 10 percent and 42 percent of Ayala Land’s total malls and offices respectively. As such, we still have significant room for growth,” said Mills.
Mills said AREIT expects a banner year for 2023 as its expands its asset with the expected P22.48 billion asset infusion from Ayala Land.
Mills said the infusion, which involves a number of properties will bring AREIT assets to P87 billion, nearly triple its initial portfolio of P30 billion in its initial public offering three years ago.
