Buyer's Guide to Ayala Land

Ayala Land to spend add’l P65B to further develop Makati

SOURCE:

http://www.rappler.com/business/industries/175-real-estate/66253-ayala-land-makati-redevelopment-p65b

MANILA, Philippines – Property giant Ayala Land Inc. is spending an additional P65 billion over the next 5 years to build new residential developments, office buildings and hotels in the Makati central business district.

The amount is on top of the P60 billion investment over a 6-year period that the company announced in 2012.

“Makati remains and will always remain as Ayala Land’s top priority… our largest source of value and our most important asset,” Ayala Land vice president Meean Dy said in a press briefing on Thursday, August 14.

The company plans to build 5 new hotels, 8,000 square meters of retail and office space, and 3,700 residential units in Makati, according to Dy.

The developments will rise in 3 key areas: the Ayala Center, Ayala Triangle Gardens, and a new mixed-use project called City Gate.

Phase 2 of Ayala Center will commence, covering the existing area of Intercontinental Hotel and its parking lot. Two new hotels will be built in the area – one of which will carry the brand Seda – along with two office towers, a business convention center, and a public transport terminal with retail component. The area spans 2.5 hectares, with 250,000 to 300,000 square meters of gross floor area.

Ayala Land will also start new developments within Ayala Triangle Gardens, including an 80,000-square meter high-grade office, and the 275-room Mandarin Oriental Hotel.

City Gate, a mixed-use project located at the corner of Ayala Avenue and Buendia Avenue, will also be constructed. The project will feature 81,000 square meters of office space, a 312-room Seda Suites Hotel, and 14,000 square meters of retail space.

Ayala Land president Bernard Vincent Dy said Makati was a vital asset accounting for 30% of the company’s net income. – Rappler.com

Ayala Corporation’s net income in the first half of the year reached P9.8 billion, 34% higher than same period last year. The strong growth was driven by the solid performance of its core businesses, particularly Ayala Land, Globe Telecom, and Manila Water. Equity earnings from Globe, which quadrupled year-on-year, more than offset the decline in the contribution of banking unit, Bank of the Philippine Islands (BPI), which registered lower trading gains in the first half of this year. The substantial improvement in equity earnings from international businesses also boosted earnings in the first semester, which included a P1.8 billion net gain from the sale of Stream Global Services, Inc. by LiveIt. Altogether, these put total equity earnings in the first half of the year at P12.8 billion, up 35% versus the same period last year.

Ayala’s core business units largely outperformed first half last year’s earnings. Ayala Land’s net income in the first semester grew by 25% to P7.1 billion as the positive momentum in the real estate sector continued. Real estate revenues grew by 24% to nearly P43 billion as its residential, commercial leasing, and construction businesses posted strong double-digit growth. Residential revenues grew by 40% to P24.3 billion on new bookings and completion of existing residential projects. Residential sales take-up remained strong, hitting an all-time high of P48.5 billion in the second quarter, registering an 11% growth year-on-year. Residential bookings also grew by 7% year-on-year to P31.6 billion. Shopping center revenues rose by 10% to P5.5 billion, while Office Leasing was up 31% to P2.1 billion. The opening of new gross leasable areas, full year operations of new offices, and higher average rent largely fuelled the 22% growth of its Commercial Leasing business. Ayala Land’s growing Hotels and Resorts portfolio also contributed as it registered a 48% increase in revenues. Strong revenues coupled with stable gross margins across nearly all its business lines pushed net earnings during the period. Ayala Land continued to launch new projects in the second quarter, bringing to market new offerings in retail, offices, hotels and even healthcare. The company spent a total of P32.9 billion in capex as of the end of the first half of this year as it continued to execute and expand its pipeline of projects.

Globe Telecom continued to sustain momentum as it achieved record-level revenues of P47.7 billion in the first half of the year, 7% higher
than the P44.5 billion recorded in the same period last year. The robust revenue expansion was fuelled by the solid growth of all business segments as
its mobile and broadband subscriber base expanded. By the end of the first half of the year Globe’s mobile subscriber base reached 42.7 million, a solid 18% growth compared to 36.1 million a year ago. Globe’s mobile segment posted revenues of P37.8 billion, 5% higher than last year due to the strong
contribution from both postpaid and prepaid segments. Globe postpaid continued to lead as revenues rose by 11%, while prepaid revenues rose by 2%. Globe continued to reinvest its gains in acquiring and retaining high quality subscribers and in the expansion of its data network. This pushed subsidy and operating expenses, including interconnection charges 12% higher year-on-year, resulting in an EBITDA of P19.1 billion, 1% higher than prior year. Substantially lower depreciation charges, as the accelerated depreciation from the network transformation program tapered, as well as lower replacement cost drove the 385% growth in net income to P6.8 billion in the first half of the year.

Ayala’s water unit, Manila Water, also reported solid earnings growth on the back of a 6% growth in consolidated revenues. The strong top-line expansion was driven by a 16% growth in consolidated billed volume. This was mainly due to the East zone, which increased by 3%, while billed volume growth from new business also registered strong double-digit growth. Consolidated cost and expenses rose by 11%, mainly as a result of higher power and utility costs. Notwithstanding this, EBITDA grew by 5% to P6 billion and consequently, net income was 8% higher to P3.2 billion by
the end of the first half. New businesses continued to contribute, accounting for 12% of Manila Water’s consolidated net income.

The strong performance of these core businesses offset the 33% decline in BPI’s net income which was reported at P8 billion in the first half of 2014. This was mainly due to the 32% decline in the bank’s non-interest income as a result of the sharp contraction in trading gains during the period. The bank’s core banking business, however, remained solid as net interest income in the first half increased by 15% relative to the same period in 2013. Total deposits exceeded P1 trillion for the first time, representing a 30% increase over the prior year. Loan growth emained robust, registering a 23% expansion during the period due to a larger average asset base. Net interest margins also improved quarter-on-quarter to 3.1% in the second quarter of the year versus 3.0% in the first quarter. Non-interest income expectedly declined to P9.2 billion, reflecting its reduced reliance on securities trading. Operating expenses rose by 10% as the bank continued to invest in its infrastructure and as it positions itself for future growth. Notwithstanding the increase in its loan portfolio, asset quality continued to improve with gross 90-day NPL ratio down to 1.85% from 2.05% a year ago. The bank’s performance as of the first half of the year translates to a return-on-equity of 12.9%.

Ayala’s international businesses saw significant improvement, contributing to the strong gains during the period. Integrated Microelectronics, Inc. (IMI) posted a five-fold improvement in net income in the first half of the year to US$11.3 million as consolidated revenues rose by 23% to US$431 million. Increased demand from customers in the telecom, automotive electronics, and storage device markets helped lift revenues and earnings. In the meantime, its business process outsourcing unit, LiveIt, posted a net income in the first half of 2014 largely due to the P1.8 billion net gain from the divestment of Stream Global Services, Inc. which was booked in the first quarter of this year.

Ayala Corporation President & Chief Operating Officer Fernando Zobel de Ayala noted, “We are very pleased to see our core businesses continuing their strong earnings momentum. This attests to the strength of the broader business environment in the country. We remain optimistic that this momentum can continue given the government’s ongoing reforms and the efforts to push for vital infrastructure projects that can unleash development opportunities and address critical bottlenecks.”

Ayala has recently made significant investments in the power and transport infrastructure sectors and has allotted P24 billion in capex for projects in this space this year. It recently won the LRT 1 bid, together with the Metro Pacific group, and was the highest complying bidder, together with
the Aboitiz group, for the Cavite-Laguna Expressway project. Since 2012, the company set out to invest a total of US$1 billion in energy and infrastructure projects through 2016. It has so far committed equity of close to US$500 million in various power and transport infrastructure projects. As of the end of the period Ayala had roughly P38 billion in cash with parent company net debt to equity ratio of 0.44 to 1.

The above press statement pertains to the disclosure submitted today to the SEC, PSE, and PDEx by Ayala Chief Finance Officer Delfin Gonzalez, Jr.

***

By Bernadette Lunas Aug. 06, 2014 at 06:50pm

Less than an hour’s drive from Metro Manila is Laguna’s not-so-hidden secret. Urban dwellers itching to take respite from the congested roads, crowded streets, pollution and monotony in the metro are now heading to Nuvali.
In the 2,290-hectare Nuvali growth center, which spans the municipalities of Sta. Rosa, Calamba and Cabuyao in Laguna, residential developments, business process outsourcing and IT offices, shops and restaurants are set against a backdrop of trees and manicured lawns, and the manmade Nuvali Lake. Aside from efficient road network, it also has designated biking lanes and jogging paths.

Nuvali’s proximity to Metro Manila and other nearby destinations and its refreshing rural appeal with metropolitan amenities make it the perfect place to settle in. In fact, people based in the Ayala Land-owned community development say it’s usual to hear from visitors how they “want to live and work here!”

Taking advantage of the dynamic growth of Nuvali that espouses eco-friendly living, AyalaLand Hotels and Resorts’ Seda hotel brand was built.

Environment- and family-friendly

The 150-room hotel, which opened in March, is the fourth and latest hotel of the Seda brand. Seda Nuvali is strategically located near malls, offices and the booming industrial sites of Sta. Rosa, Laguna.

The Deluxe Room offers amenities to
ensure guests are comfortable and
connected while enjoying a scenic view
by the window.
Its gardens open up to the scenic four-hectare man-made lake, making it the brand’s biggest in terms of facilities land area and “the most photogenic Seda hotel’’ according to its general manager, Jeffrey Enriquez.

Seda Nuvali takes pride in being an environment-friendly hotel. In line with Nuvali’s goal to build a community that allows people and nature to thrive harmoniously, the hotel was designed to complement with nature and implements energy-efficient practices.

For instance, Seda Nuvali has a north-south orientation to avoid direct sun exposure and has floor-to-ceiling windows to maximize the natural light during the day. True enough, even on a hot summer afternoon, the hotel is able to keep the temperature inside comfortably low.

Aside from offering a panoramic view, the Nuvali Lake also serves as the hotel’s catch-basin facility for recycling wastewater.

Like its three counterparts in Bonifacio Global City, Centrio and Abreeza, Seda Nuvali was primarily established to cater to business travelers. During weekdays, nearby offices in Nuvali are regularly booking employees and guests at the hotel. But on weekends, families and groups of friends flocking to the area to join sporting events keep the occupancy levels higher than expected.

“We are proud to say that we are reaching 70 percent occupancy rate. On weekdays we have corporate bookings usually those coming from Laguna Technopark, while on weekends we have more walk-ins, mostly family and friends,” shares Enriquez.

Wakeboarding in Nuvali is attracting lots of local and foreign tourists.

Wakeboarding in Nuvali is attracting
lots of local and foreign tourists.
According to Enriquez, Seda Nuvali has also become a popular site for families on staycation and those going to Tagaytay but prefer to stay in Laguna.

“Some choose to stay here since there are also good choices of activities in the area such as fishing and boating by the lake, wakeboarding, biking and outlet shopping,” he adds.

Meanwhile, team-building at Camp N and small conventions are boosting their corporate client bookings. A convention center to be built soon in Nuvali is expected to further increase the hotel’s occupancy rate.

Business travelers are afforded several amenities to help them stay connected. The hotel lobby has an e-lounge equipped with three Mac computers, while in each guest room there are media panel with HDMI, USB and audio visual connectivity, IDD phone and iPod dock. Guests also enjoy free Wi-Fi.

Families with kids need not worry in keeping the young ones occupied with Seda Nuvali’s Play Room, which can accommodate 10 to 15 children. For older guests seeking thrill from the screen, the hotel’s Game Room is complete with PC, PS2, Xbox and more for an hour or two of gaming session.

For those who want to take a dip, scratch the thought of the lake because the hotel has a 4-ft deep Swimming Pool which opens from 6am to 8pm. Seda Nuvali’s in-house restaurant Misto offers wide array of food choices in its buffet spread.

But if guests prefer to stay in their room, they are in for a scenic treat as each room is strategically positioned to provide unobstructed sightlines to the best views of the Nuvali Lake, the green fields, as well as distant Mount Makiling.

For more space and privacy, there are Premier Rooms that offer use of the Club Lounge and its accompanying benefits.

From a pit stop of urban weekenders headed to Tagaytay, Nuvali has now become a destination for quick getaway. The sprawling community offers different activities for thrill-seekers, nature-lovers and hardcore shoppers.

From Seda Nuvali, a 10- to 15-minute drive brings guests to Republic Wakepark where one can test his skills in the water and learn the basics of wakeboarding.

Republic Wakepark is owned and operated by the same people behind the world-class CamSur Watersports Complex. However, it features a smaller and shallower lake for both beginners and advanced wake boarders compared to CWC. Nonetheless, the watersports complex is one of the reasons more local and foreign tourists head to Nuvali.

If water is not your thing and you prefer to walk and hang on ropes and other obstacle courses up to 20-ft above the ground, then Camp N is right up your alley.

Perfect for company team-building, Camp N will surely test one’s physical strength, mental skills, patience and drive to finish each obstacle. It’s open on weekends and for special booking during weekdays.

For a more laid-back afternoon, guests can opt to feed the hungry kois by the lake or hop on a Water Taxi boat and enjoy a different view of Nuvali for only P30 per head; both can be done from 8am to 5pm every day. Or go spot a variety of bird species by the view decks at the Wildlife and Bird Sanctuary from 6am to 8am or 4pm to 5pm.

Shoppers always on the lookout for the best bargains will surely love Solenad 1 and 2 in Nuvali—a short walk from Seda—which house several outlet stores of known brands such as Aldo, Collezione, Hush Puppies, Adidas, Rudy Project, Sebago and a lot more offering discounts on their items.

According to officials many guests of the hotel from Metro Manila simply come for outlet shopping.

For information about Seda Nuvali and its promotions, visit http://www.sedahotels.com/nuvali/

Article Source:

http://manilastandardtoday.com/mobile/2014/08/06/laguna-s-not-so-secret-sanctuary