Buyer's Guide to Ayala Land

By: Cathy Rose A. Garcia | ABS-CBNnews.com
Posted at 07/05/2012 1:43 PM

MANILA, Philippines – Quezon City will soon have its own Makati-style central business district. Leading property developer Ayala Land Inc. (ALI) is investing P65 billion to develop Vertis North – a premier business district in the North Triangle property located next to the Trinoma Mall.

ALI president Antonino Aquino described the P65-billion project as the “biggest and most modern development” catering to the northern part of Metro Manila. The project broke ground on Tuesday morning.

The 29-hectare Vertis North will have 45 towers, composed of offices, retail space, a hotel, residential buildings and open spaces, which will be developed over a 10-year period.

In a press conference on Thursday, Aquino said the company is initially investing P12 billion for the three-year development of Phase 1 of Vertis North. Phase 1 will include a Kukun Hotel; office buildings, particularly for business process outsourcing companies; and Bonifacio High Street-type retail areas in a 7-hectare area.

“What Vertis North will look like will be no different from what ALI has developed in the past, like Makati – a large-scale mixed use development that is now the country’s central business district… We feel QC being the largest city, in area and population, deserves to have its own CBD. This location is the best for a CBD in QC,” he said.

The Vertis North area, which is located between EDSA, North Avenue and Mindanao Avenue, is roughly half of the Makati central business district. Like in Makati, Aquino said it will have a mix of developments, such as residential developments similar to Legaspi and Salcedo Villages in Makati; and open spaces such as Ayala Triangle and Greenbelt Park.

ALI is also making sure Vertis North will be an environmentally sustainable development by adopting storm water management technology. “In Vertis North, as in all other ALI developments, we make sure that we do not contribute to the problem further by actively reducing the occurrence of flooding,” he said.

The project will also have a system of underground car parks and roadways, mirroring the roads above ground. Aquino said this will multiply the amount of road space in the area.

ALI eventually wants to build an Intermodal Transport Hub, which will give commuters easy access to MRT 3, buses along EDSA and the upcoming MRT 7 project. However, Aquino said the plan will still have to be discussed with various government entities.

Joint venture with NHA

Vertis North is a joint venture project between ALI and the National Housing Authority (NHA), with a 72-28 split of ownership. “This is a PPP (public private partnership). The land we’re talking about in North Triangle was owned by the NHA,” Aquino said.

NHA general manager Chito Cruz said the agency’s initial contribution to the project is the P6-billion North Triangle property. “With the joint venture, we will be able to turn idle land into productive use. Our initial contribution is P6 billion and estimated revenue is another P6 billion, so we are doubling our investment with the project,” he said.

Since the North Triangle property was idle government land, thousands of informal settlers had filled the area. However, the QC government has managed to clear the area for the first phase of the Vertis North project, but there are still remaining informal settlers in the area.

Of the 10,000 families who were living in the area, some 6,500 have already been relocated to housing projects in San Jose del Monte, Bulacan and Rodriguez, Rizal.

The NHA hopes to clear the area of informal settlers by September.

“There is a need for constant dialogue, negotiations and to sit down with the families. We are hopeful that we can take them out so we can proceed with the project by September,” Cruz said.

The Vertis North project is expected to create 200,000 jobs during its entire development stage, of which 35,000 will be generated during Phase 1.

SOURCE

For those interested to know more about Ayala Land Premier villages and condo, feel free to contact me anytime.

Thank You!

Your Ayala Land Guide,

COCO MIDEL
M: +63.917.502.9252
T: (02)577.27.12
E: midel.jerico@ayalaland.com.ph

By: Doris C. Dumlao
Philippine Daily Inquirer
Wednesday, July 11th, 2012

MANILA, Philippines—Property giant Ayala Land Inc. has raised P13.6 billion from a quick sale of shares to new investors, making history as the largest overnight equity deal done by a Philippine company.

ALI placed out 680 million new common shares at P20 per share via a top-up offering, which meant that controlling stockholder Ayala Corp. initially lent out secondary shares for sale to qualified buyers and institutional investors and then subscribed to the same number of new primary shares from ALI at the same price.

Based on data from Dealogic, this landmark transaction represented the largest overnight placement by a real estate company in Southeast Asia since 2005, as well as the largest-ever overnight placement in the Philippines.

The offering was originally launched as a top-up placement of 530 million shares at an indicative price range of P9.80 to P20.20 per share. Due to strong demand as reflected by oversubscription to the offering, the offering was increased to 680 million shares.

“We are delighted with the investor community’s continued strong support of Ayala Land. This capital raise builds on the company’s recent performance and positions us well to capture the attractive real estate growth opportunities we see throughout our country,” ALI chair Fernando Zobel de Ayala said in a press statement.

The company plans to use the proceeds of the share placement primarily to “fund its next phase of expansion, enabling it to sustain its high growth trajectory.”

In addition to its previously announced P37 billion capital expenditure program for 2012, ALI said it has identified significant landbanking opportunities amounting to approximately P36 billion over the next two to three years. Approximately P20 billion of this may be deployed in Makati City and other parts of Metro Manila and the balance in growth centers in Nuvali and other parts of Luzon and in the Visayas and Mindanao.

Furthermore, a portion of the proceeds is also expected to partially fund ALI’s potential strategic alliance with a group led by Ignacio Ortigas and resulting participation in OCLP Holdings, Inc., the parent company of Ortigas and Company Limited Partnership, for which ALI budgeted an initial investment of P15 billion. This alliance is expected to provide the company with access to prime properties in Metro Manila amounting to about 55 hectares.

“We are on track toward achieving our ‘5-10-15’ plan by 2014. This equity raise provides Ayala Land with expanded permanent capital to support our long term growth plans,” said ALI president Antonino Aquino.

Goldman Sachs (Singapore) Pte., J.P. Morgan and UBS Investment Bank acted as joint bookrunners and placement agents in connection with the placement. BPI Capital Corp. acted as sole domestic coordinator and bookrunner while CLSA Ltd. acted as co-manager.

SOURCE

For those interested to know more about Ayala Land Premier villages and condo, feel free to contact me anytime.

Thank You!

Your Ayala Land Guide,

COCO MIDEL
M: +63.917.502.9252
T: (02)577.27.12
E: midel.jerico@ayalaland.com.ph