ALI forms P1-B unit for cheaper housing

By JAMES LOYOLA / http://www.mb.com.ph/articles/216001/ali-forms-p1b-unit-cheaper-housing

Ayala Land, Inc. (ALI) has approved the formation of a P1 billion new, wholly-owned subsidiary to pursue a planned expansion of its residential development operations targeting the country’s lower economic housing segment.

The firm said in a disclosure to the Philippine Stock Exchange (PSE) that the new subsidiary will be separate and distinct from the company’s three existing brands – Ayala Land Premier, Alveo Land, and Avida Land – but initial launches for the new product line will be carried as a sub-brand of Avida.

ALI intends to capitalize the new subsidiary with a staggered infusion of P1 billion over the next three years to fund operating expenses and the acquisition of potential landbank areas.

It said this initial capitalization will cover an initial run of six projects in select industrialized rural areas in Southern and Central Luzon, where end-user demand is expected to be strong.

“The formation of this new subsidiary supports our strategy to expand our market beyond what we currently offer and serve a broader segment of the population that demands more affordable but quality residential developments,” said ALI president Antonino Aquino.

He said “this is a market wherein we see much opportunity and future growth for ALI.”

Product offerings will comprise mainly house and lot “starter home” packages with prices ranging from P600,000 to P1.25 million per unit.

Plans are being drawn up for the subsidiary to launch its first project in Laguna within the first quarter of 2010.