Ayala Land pumps P2B into venture with Lucio Tan

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Property giant Ayala Land Inc. is hiking investments in its Metro Manila real estate joint venture with taipan Lucio Tan’s Eton Properties Philippines Inc. by nearly P2 billion.

In a stock exchange filing, Ayala Land said it would spend another P1.98 billion to buy property in the 35-hectare Parklinks project, being developed by the 50-50 venture ALI Eton Property Development Corp.

A former industrial estate along C-5 road spanning Pasig and Quezon City, Parklinks is envisioned to be Metro Manila’s newest and greenest central business district.

Ayala Land’s investment, to be deployed until the fourth quarter of 2022, was detailed in its reinvestment plan after it raised P3.47 billion via a property for share swap with its real estate investment trust arm, AREIT Inc.

The developer will also spend for land acquisitions in Laguna Technopark Inc. (P750 million), Quezon City (P290.46 million), Cavite (P118.36 million) and Bulacan (125.17 million).

Ayala Land will also spend P110.3 million for a 43-story office in One Vertis Plaza and P70.12 million to build homes in the 49.3-hectare Andacillo project in Laguna.

Positive outlook

Part of the conglomerate Ayala Corp., Ayala Land entered the year with more bullish prospects in mind as it upped its capital spending commitment to P88 billion or nearly 40 percent higher than the previous year’s P64 billion.

About 49 percent of the spending would be allotted for residential projects. Ayala Land will spend the remainder on estate development, land acquisition with a smaller share going to malls, hotels, resorts and offices.

Meanwhile, it was planning to roll out about P100 billion worth of residential projects this year.

Ayala Land closed 2021 with a 40-percent profit jump to P12.2 billion. Revenues during the period rose 10 percent to P106.1 billion compared to the previous year. INQ

SOURCE:

https://business.inquirer.net/347009/ayala-land-pumps-p2b-into-venture-with-lucio-tan

ALI optimistic its business will improve this year

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Real estate giant Ayala Land Inc. is now ready to open new malls and pursue the construction of new ones as it becomes more optimistic that consumers are going out again as the economy reopens.

ALI Chairman Fernando Zobel de Ayala during the firm’s annual stockholders’ meeting noted that declining Covid cases, the ongoing vaccination booster rollout and improving indicators support recovery prospects.

“Mortgage rates have remained affordable, supported by flexible payment terms. Local consumption continues to be strong comprising close to 70 percent of the GDP,” he added.

“Also Overseas Filipino remittances and BPO revenues continue to be important than versus the economy. All these prospects provide us with optimism for the future,” Zobel said.

ALI President Bernard Vincent Dy said “I believe that all our major businesses will remain relevant post pandemic. Some will even benefit from the changes in consumer preferences.”

“While a few businesses will require a higher level of reinvention with changes that we need to implement quickly. New opportunities have also been crystallized, which we will pursue aggressively,” he added.

Dy said that, “With reduced Covid cases, high vaccination rates, and improved mobility, I am optimistic that our country is on course for resurgence and we are positioned to accelerate our V-shaped recovery.”

“Local consumption remains strong in our nation’s favorable demographics, a growing middle class, and a young working class will support growth over the medium to long term,” he noted.

Given the improving situation, Dy said ALI is now planning to open new commercial facilities with the first being the retail space at the Ayala Triangle Gardens as well as the 11,000 square meters in the phase one of Vermosa mall in Cavite.

“We have close to about 300,000 square meters of mall space under construction and we expect to open these facilities from now until 2026,” he said.

Dy said that, as of April, foot traffic in all of ALI’s malls have risen by an average of 70 percent while merchant same store sales are up 80 percent.

“So we believe that the malls business is on its way to recovery and barring any more lockdowns or surges or strict, strict mobility restrictions, we believe and we hope that the business will continue to move and hopefully reach near pre pandemic levels by the person by by Christmas season,” he said.

Meanwhile, ALI is seeing strong demand for its hotel rooms, primarily from domestic business travel, as well as domestic leisure travel.

In March, Ayala Land recorded around 45 percent occupancy in all its hotel rooms since the alert level one category for people’s restriction was imposed.

“In April, we’re seeing that continuing trend of increasing occupancy. We’re also seeing an increase in the room rates that we’re able to charge for hotels and resorts,” said Dy.

He added that, “Moving forward again, we’re very hopeful that that trend will will continue again barring any kind of lockdowns or mobility restrictions for travel restrictions. And we’re hopeful that the business will put up particularly as foreign business travel and foreign leisure travel, come back in more meaningful way in our country.”

In the office segment of its business, ALI has not seen “any kind of meaningful contraction or departure” from any of its four major tenants for business process outsourcing (BPO) firms and traditional corporates locators.

Dy said Ayala Land continues to see BPO expansions in its sites, as well as traditional space occupiers moving to newer buildings like Ayala Triangle Tower two as well as One Ayala.

“So moving forward for the year, we expected that vacancy rates will be meaningfully reduced, and therefore, our revenues for the office segment should increase in 2022 as compared to 2021,” he said.

SOURCE:

Ayala eyes P15 billion from bond offer

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MANILA, Philippines — Ayala Corp., the country’s oldest conglomerate, is returning to  the bond market to raise up to P15 billion in fixed-rate bonds.

In a disclosure yesterday, Ayala said it has filed with the Securities and Exchange Commission (SEC) a registration statement for the issuance of  P10 billion in bonds, with an oversubscription option of five billion.

The bonds – due 2025, 2027 and 2029 –   will form the second tranche of a P30-billion shelf-registration program with the SEC.

The bonds obtained the highest issue credit rating of PRS Aaa from local debt watcher Philippine Rating Services Corp.

Obligations rated as PRS Aaa are of the highest quality with minimal credit risk.

A PRS Aaa rating likewise signifies that Ayala’s capacity to meet its financial commitment  is extremely strong, PhilRatings said.

Proceeds from the bond issue will  be used for general funding requirements as Ayala realigns its portfolio and focuses on core businesses such as banking, telecommunications, property and renewable energy.

The Ayala Group is setting aside P285 billion for its capital expenditures and investments this year, higher than the P228 billion in 2021.

Bulk of the spending plan will be for Ayala’s flagship units, property giant Ayala Land Inc., telco arm Globe Telecom Inc. and its renewable energy player AC Energy (ACEN).

Last year, Ayala grew its net income by 62 percent to P27.8 billion, primarily driven by realized income from the execution of strategic initiatives, boosted by the improved performance of Ayala Land and BPI.

SOURCE:

https://www.philstar.com/business/2022/04/13/2174131/ayala-eyes-p15-billion-bond-offer

Ayala group investing P 13.6B in BPI’s new head office

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By: Doris Dumlao-Abadilla – Reporter 

SOURCE: https://business.inquirer.net/343458/ayala-group-investing-p-13-6b-in-bpis-new-head-office

The Ayala group is investing about P13.6 billion to build the new head office of Bank of the Philippine Islands (BPI) along Ayala Avenue in Makati—designed to be a 45-story “iconic, elegant and green” skyscraper that will symbolize the storied conglomerate’s solid commitment to the country.

“This investment will help spur growth in the Philippine economy, spur many business activity and provide much needed employment opportunities for Filipinos,” Jaime Augusto Zobel de Ayala, chair of BPI and Ayala Corp., said during the ground-breaking ceremony for the “grade-AAA” building on Tuesday.

This real estate redevelopment project is a partnership between BPI and Ayala Land Inc. (ALI), with a respective economic interest of 51 percent and 49 percent, respectively.

The project will create 1,800 new jobs, Zobel said, referring to the manpower needed to construct the building, which will be completed in the fourth quarter of 2029 and ready for occupancy by 2030.

Redefining the skyline of the Makati central business district, the future headquarters of Southeast Asia’s oldest bank will rise on its 5,599-square meter (sq m) lot at the corner of Ayala Avenue and Paseo de Roxas at an estimated height of 224 meters. It will have a gross floor area of 89,000 sq m, of which 60,000 sq m will be leasable.

The building can accommodate about 6,500 office workers from BPI and other corporate tenants.

Zobel said this new skyscraper would “symbolize our confidence in the future and Ayala group’s contribution to building a better Philippines.” He added that this demonstrated the group’s conviction that despite the challenging times caused by the two-year COVID-19 pandemic and the conflict in Europe, “Philippines will see brighter times ahead.”

BPI president Teodoro Jose Limcaoco said the future BPI head office would become “not just as workplace but an “environment where we can all learn, we can all grow and build lasting relationships.”

Based on today’s leasing rate of about P1,500/sqm month for office space in the Makati central business district, ALI may generate about P45 million per month in recurring leasing revenues from its share of half the leasable space in the project (about 30,000 sqms), ALI president Bernard Vincent Dy said in a joint press briefing with Limcaoco.

This suggests that the project can add about P540 million in annual rental revenues to ALI, without pricing in annual rental escalation.

As the building is not registered with the Philippine Economic Zone Authority (Peza) given the moratorium in the issuance of new accreditation, Dy said the property would likely attract more multinational country head office and other locators, rather than business process outsourcing (BPO) firms. However, he said the group would seek Peza accreditation once such option was available.

The building itself will have an energy-saving, 100 percent glass facade. Located at the heart of the Makati Central Business District at the corners of Ayala Avenue, Paseo de Roxas, and Dela Rosa, the masterplan maximizes land efficiency while providing a generous civic space that seamlessly connects to Makati’s underground and elevated walkways.

At the street level, the property will have an 800-sqm civic space for the public to “stimulate progressive thinking.”

The plan was conceptualized by global design firm Skidmore, Owings & Merrill (SOM) in collaboration with the architect-of-record, Aidea Philippines Inc.


Ayala Land sets P100-B in projects for this year

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SOURCE: https://business.inquirer.net/342158/ayala-land-sets-p100-b-in-projects-for-this-year

By: Doris Dumlao-Abadilla – Reporter / @philbizwatcher

Philippine Daily Inquirer / 04:30 AM March 02, 2022

Property giant Ayala Land Inc. (ALI) plans to bring to the real estate market P100 billion worth of new inventory this year, regaining the kind of expansion appetite last seen prior to the COVID-19 pandemic.

ALI posted a 40-percent growth in net profit last year to P12.2 billion, driven by higher property development and office leasing revenues. This attained 92 percent of the P13.24-billion net income that Bloomberg market consensus expected the firm to deliver for the year.

Compared to prepandemic earnings, ALI’s 2021 bottom line accounted for 37.4 percent of the P33.19-billion net profit posted in 2019.

For the fourth quarter alone, ALI’s net income reached P3.6 billion, 52 percent higher year-on-year and 54 percent higher quarter-on-quarter.

“Our focus in 2021 was to ensure we provided the right environment in our communities for our residents, businesses and institutional locators to adapt and function better while executing our business recovery plans. As the economy moves to full reopening in 2022, we look forward to the acceleration of our business activity backed by our land bank, diversified portfolio and market-leading estate developments,” said Bernard Vincent Dy, ALI president and CEO.

Capital spending hike

In an investors briefing on Tuesday, ALI chief financial officer Augusto Bengzon said the group’s capital spending this year would increase to P90 billion, rising from P64 billion last year.

Residential projects will account for 49 percent of capital outlays this year, followed by estate development which will account for 18 percent. Land acquisition will have a budgeted share of 19 percent. Mall developments will account for 5 percent, while hotel and resorts as well as offices will each have a share of 2 percent.

For the new product launches with an estimated value of P100 billion, the Alveo brand will have the biggest share at 38 percent, followed by Avida and Ayala Land Premier with 25 percent and 24 percent, respectively. In terms of location, South Luzon will have the biggest share at 43 percent, followed by Metro Manila with 33 percent.

“With the full reopening [of the economy], we see or anticipate increased demand from the renewed confidence and, as such, we are planning to launch P100 billion worth of projects,” Dy said.

Last year, ALI rolled out 22 projects valued at P75.3 billion, seven times more than the rollout in 2020 at the peak of local lockdowns.

Rising revenues

In 2021, ALI’s revenues increased by 10 percent to P106.1 billion, as property development revenues grew by 14 percent to P75.9 billion on the back of construction progress and higher project bookings. Most of the revenue buildup commenced in the fourth quarter as it grew by 40 percent to P24.4 billion from the third quarter.

upported by relaxed quarantine restrictions in the fourth quarter, total revenues sequentially grew by 2 percent to P33.5 billion.

As an indicator of future revenue growth, sales reservations for the year reached P92.2 billion, up by 13 percent from the level in 2020. This was mainly attributed to solid demand for lots in Southern Luzon by Ayala Land Premier and Alveo.

Sales reservations from lot sales alone jumped by 36 percent to P41.5 billion during the year. In the fourth quarter, sales grew by 5-percent year-on-year to P22.1 billion. INQ

AREIT posts 56% net income in 2021

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By Faye Almazan

THE real estate investment trust (REIT) of Ayala Land, AREIT Inc., posted higher full-year profit and revenues last year.

In a filing to the exchange on Monday, the company reported a 56-percent better net income of P2.27 billion in 2021.

AREIT noted the figure excludes the net fair value change in investment properties of P165 million.

Stable operations prompted the company’s full-year revenues to rise by 63 percent to P3.32 billion last year as its occupancy and rental collection rates both ended at 98 percent during the period.

Meanwhile, its full-year dividends were declared at P1.77 apiece in 2021, up 34 percent from last year and 12 percent more than its REIT plan projection.

Last year, AREIT’s total gross leasable area (GLA) stood at 549,000 square meters (sqm), while its assets under management (AUM) was at P53 billion.

In its new three-year strategy, AREIT targets to reach P60 billion in AUM this year and increase its asset portfolio at an average of 100,000 sqm in GLA in 2023 and 2024.

“The company maintains its thrust to grow and diversify its asset portfolio by sector, location and income contribution and achieve a total shareholder return range of 10 to 12 percent,” the company said.

Shares of AREIT inched up by 30 centavos or 0.61 percent to close at P49.30 each on Monday.

SOURCE:

https://www.manilatimes.net/2022/03/01/business/corporate-news/areit-posts-56-net-income-in-2021/1834631

Ayala Land posts 40% rise in net income in 2021

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By Ted Cordero, GMA News

Property development giant Ayala Land Inc. (ALI) saw a double digit growth in its bottom line last year on the back of resilient operations amid the COVID-19 pandemic.

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In a disclosure to the Philippine Stock Exchange on Tuesday, ALI reported a net income of P12.2 billion, up 40% year-on-year on the back of 10% growth in total revenues of P106.1 billion.

Sales reservations for the year reached P92.2 billion, up 13% from last year, mainly due to solid demand for lots in Southern Luzon by Ayala Land Premier and Alveo.

Sales reservations from lot sales jumped 36% to P41.5 billion.

Commercial leasing revenues amounted to P20.6 billion, down 5% from a year ago as malls, hotels, and resort operations remained limited for most of the year due to COVID-19 restrictions, ALI said.

SOURCE: https://www.gmanetwork.com/news/money/companies/823491/ayala-land-posts-40-rise-in-net-income-in-2021/story/

Secondary Market Watch – Two Roxas Triangle

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For more info: Mobile +639175029252

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Ayala Corp to push P17.3B in assets to Ayala Land in property-for-share swap

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SOURCE:https://www.philstar.com/business/stock-commentary/2022/01/24/2156010/ayala-corp-push-p173b-assets-ayala-land-property-share-swap

The news came out of AC’s board of directors meeting and will see Ayala Corp [AC 868.00 2.72%] and Mermac, the Ayala Family’s private holdco, transfer P17.3 billion worth of real estate assets.

AC will receive 309,597,711 primary (unissued) common shares of Ayala Land [ALI 34.65 1.61%] at a per-share valuation of P55.80.

The fairness opinion for the value of the AC assets was between P16.58 billion and P22.41 billion, and the value of the ALI shares P49.44 to P76.50 per share.

The parties anticipate completing the transaction within the year, and once complete will result in AC owning 47.2% of ALI (up from 46.1%), in line with AC”s strategic goal to increase its stake in ALI.

The properties to be transferred from AC to ALI include: “50% stake in Ayala Hotels, Inc., a joint venture of the Company with ALI that owns the lot leased to Manila Peninsula Hotel, Inc.;… its 100% stake in Darong Agricultural and Development Corporation, an operating company with land assets in Davao del Sur, together with AC’s three lots in the same area; its office units at the 32nd to 35th Floors of Tower One and Exchange Plaza with appurtenant parking slots; its lot with improvements in Brgy. Bagumbayan, Quezon City along C5 Road; and its land in Calauan, Laguna.”

MB BOTTOM-LINE

The announcement was made before the trading day began, and both AC and ALI gained during the session. Granted, the general trend in the market that day was positive, but it’s reassuring for holders of All Things Ayala to see the market react positively to large reorganization moves like this.

The new life-cycle for Ayala Family-owned land is for group assets to get organized under ALI, then for ALI to bundle developed assets together for transfer into AREIT [AREIT 52.05 0.10%] to recycle the capital and start the process over again, except this time at the ALI level.

Secondary Market Watch – The Suites BGC

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