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

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

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/

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.

Ayala Land Estates and the year that was

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Every fresh start gives us an opportunity to reflect on the year that was – the opportunities we are grateful for, hopeful as we move forward to a new year. 

For AyalaLand Estates, a leader in master-planned and mixed-use development, much can be said about how the community has come together and grown despite unprecedented challenges in 2021. More than just transforming land into businesses, industries and residential spaces, at its heart were the communities – seen in the way people continued to celebrate the traditions and uphold values that mattered most. 

Here are its top 10 things to be thankful for in 2021:

1. Growing to new locations, locators and partners

Continuing to spread growth in areas outside of Metro Manila, Ayala Land officially launched South Coast City at the South Road Properties in Cebu City in June of 2021. Developed in partnership with SM Prime Holdings Inc., South Coast City is a 26-hectare waterside development poised to be the new home of prime entertainment and commercial concepts in Cebu. As the first master-planned integrated development in southern Cebu, it aims to contribute to Cebu’s economic recovery efforts by further enhancing the region’s offerings and generating significant employment and investments.

Ayala Land Estates

The shophouse district in Cresendo in Tarlac was also introduced to suit the needs of investors that are looking for properties that are strategically located and flexible in terms of use. This showcases prime commercial space while allowing the flexibility to use the upper floors possibly for residential or office use – reflecting the shift in market behavior towards compact, multi-use neighborhoods.

Partnerships were also forged in existing estates to enhance the offerings within the developments. These include schools such as Miriam College and Holy Angel University in Alviera and Don Bosco in Cresendo. Retail brand, Waltermart, is currently constructing in Altaraza in Bulacan and The Junction Place in Quezon City, while office locators are also constructing their office buildings in Nuvali and Arca South. The opening of the Ayala Vermosa Sports Hub, lifestyle market, Jollibee also welcomed the community with more lifestyle and dining options during the holiday season.

2. Enhanced community experiences

As many opted to stay within their bubbles with the continuing pandemic, the various Ayala Land estates created pocket events, online experiences and safe spaces for the community to still interact despite the restrictions. This was especially important to ease the fatigue of staying home for over a year. Many appreciated the value of parks and open spaces, neighborhood restaurants and markets, outdoor events and wellness activities.

3. A shot of confidence

With the rest of the Ayala Group of Companies, the Ayala Vaccination and Immunization Program (AVIP) was rolled out to encourage and facilitate the vaccination of employees (direct and outsourced), retirees, registered employee dependents, household staff, and partners. Ayala Land also opened its malls as vaccination sites, including a drive-thru vaccination service at Circuit Makati as well as drive-thru PCR testing at Vertis North, to continue to support the national government’s efforts to curb the spread of the COVID-19 virus.

4. Lessons for a better normal

The company learned much from how communities have adapted in the last two years. It showed what stakeholders value most – family, safety and security. While the estates continue to support this change in lifestyle, Ayala Land also believes that this is an opportunity evolve into a better normal. This strengthens the company’s thrust to create sustainable and resilient master-planned estates across the country.

5. Quickly adapting to digitalization

This pandemic has only fast-tracked what ALI had already started in 2019, which is the transformation of its digital infrastructure. To better serve its customers amidst the limitation of less face-to-face interaction, AyalaLand Estates upgraded its virtual tours and launched a new sales portal for easily accessible sales tools and real-time sales updates on its website.

6. Providing a platform for success

To support its communities, especially small and medium enterprises (SMEs) during these challenging times, ALI launched the Alagang AyalaLand program. Apart from providing spaces in its estates and within Ayala Malls, the Alagang AyalaLand program also ensures that entrepreneurs and cooperatives are also supported across all of Ayala Land’s business units, including its estates, offices, construction, and property management groups. 

In 2021, the Alagang AyalaLand Centers supported more than 400 social enterprises and generated at least 4,000 jobs for the community. Some estates have also allotted spaces wherein some groups can propagate high-quality tree and plant specimens which ALI then purchases for its requirements.

Ayala Land Estates

7. Celebrating the reason of the season

Restrictions required a shift in perspective of how to create safe experiences for the community. Ayala Land saw this as an opportunity to highlight the importance of Filipino traditions in celebrating the holidays with families and loved ones. The estates continued to host Simbang Gabi masses – whether drive-thru or at parks, safe outdoor spaces for dining, holiday bazaar shopping, and celebrating songs and carols thru an online Christmas concert and the 2nd virtual edition of the iconic and well-loved Festival of Lights.

8. Hard-earned Recognition 

While Ayala Land strengthened its efforts to adapt and innovate, the company was recognized with numerous accolades along the way. The Ayala Land group of companies garnered over 200 awards in property development, sustainability, finance, management, marketing, construction, and safety from local and international award-giving bodies in 2021.

9. Being a catalyst of growth

As it continues to build integrated, sustainable, master planned estates, Ayala Land has become a catalyst in spreading economic development throughout the country. Its 31 estates have not only become business districts where commercial activity gravitates, but also centers for lifestyle and activity, and preferred neighborhoods to live in.

10. An opportunity to help 

Super Typhoon Odette capped the year with massive destruction for Filipinos in the Visayas and Mindanao. To this day, three weeks after, many are still in the dark without electricity in their homes. While they were themselves affected, Ayala Land’s people on the ground were quick to provide water and power within our estates. ALI also provided water and over P1.5 million worth of relief packs for our neighboring barangays through Alagang AyalaLand.

2021 was quite a year for Ayala Land, and with the many plans in store for the estates, 2022 looks even more promising for its communities.

Read more: https://business.inquirer.net/338378/ayala-land-estates-and-the-year-that-was

COVID-19 Response

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To our employees, partners and friends,

In these most trying times, those significantly affected by the COVID-19 situation are the thousands of workers that will be affected by the enhanced community quarantine because their places of work have been closed. These include retail workers, construction workers, service providers, security agencies and employees of many similar businesses who are largely on a no-work-no-pay type of employment.

The Ayala group as a whole, has decided to adopt a COVID-19 emergency response package of P2.4B consisting of wages, bonuses, leave conversions and loan deferments primarily for the extended workforce of our partner employers so they may continue to be paid for the duration of the quarantine period. These include P600M in salary continuance for displaced workers from construction sites, shuttered malls and retail spaces of Makati Development Corporation and the Ayala Malls group. Globe Telecoms has earmarked P270M for its retail store support staff and vendor partners while all other Ayala companies will reserve another P130M in personnel-related financial support.

Furthermore, Ayala Malls will be providing a rent-free period for malls that are not allowed to operate during the community quarantine from March 16 to April 14. The total package will be worth around P1.4B in rent condonation to provide the merchants of these malls financial relief so they can in turn provide the much-needed financial support for their employees during this period.

For its own employees, Ayala will continue to provide salary continuance and financial support where possible as most of these employees will be getting their mid-year bonuses normally paid in April starting today through the end of March. Ayala has also postponed or delayed employee loan payments due to the Ayala Multi-Purpose Cooperative and have introduced special financial assistance programs at subsidized rates.

Ayala continues to ensure that those who are most directly affected by this emergency are taken care of through these financial assistance measures.

As always, stay healthy and be safe.

Jaime Augusto Zobel de Ayala and
Fernando Zobel de Ayala

Ayala Profits Up

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Ayala Land 2019 Profit Up 13% at PHP33.2 Billion
By Ben Otto

Philippine property developer Ayala Land Inc. reported 2019 net income rose 13% partly due to strong sales in office, commercial and industrial lots.

Ayala Land, a unit of Manila-based conglomerate Ayala Corp., posted net income of 33.2 billion Philippine pesos ($657.8 million) for the year, the company said in a stock-exchange filing Friday.

Revenue for the year was PHP168.8 billion, up about 2% on year, it said.

To read the rest of the article, click the source link below:
https://www.morningstar.com/news/dow-jones/20200214199/ayala-land-2019-profit-up-13-at-php332-billion

Makati Subway News

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Ambitious Makati subway plan sees the light of day
By: Daxim L. Lucas – Reporter / @daxinqPhilippine Daily Inquirer / 03:40 AM October 16, 2019

SOURCE:

Ambitious Makati subway plan sees the light of day

Read more: https://business.inquirer.net/281196/ambitious-makati-subway-plan-sees-the-light-of-day#ixzz62a3mFbEV
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For the most part, Makati City—the country’s premier business district—is at par with other centers of commerce and finance around the world.

It has many skyscrapers offering of grade A office space to multinational corporations, an abundance of retail establishments to satisfy all kinds of shopping needs and a multitude of food establishments catering to the dining needs of its estimated daytime population of four million workers.

But it has one key flaw: the planners of the city that rose from what was once a marshland a century ago failed to lay down the infrastructure for a mass transit system that would support the daily commute of office employees into and out of what eventually became the country’s most coveted address.

Apart from a creaky and stoppage-prone light rail system on one side and an antiquated and decrepit train line on the other, Makati commuters have to rely completely on an increasingly congested road network served by buses, jeepneys and cars—thousands of cars—resulting in daily vehicular traffic gridlocks around several key intersections, especially during the morning and evening rush hours.

That is about to change.

If plans don’t miscarry, a partnership between the Makati City government under Mayor Abby Binay and a private sector consortium led by Philippine Infradev Holdings of businessman Antonio Tiu will break ground on what will be the country’s first subway project.

“The benefits of this project will be massive,” Binay said. “It will benefit all the residents of the city, and even those who live in other parts of Metro Manila, because it will make it easier to travel within Makati and into or out of it.”

She explained that the subway project—with an estimated project cost of $3.7 billion—would also dramatically reduce vehicular traffic within the central business district when it came online in 2025.

“With a modern subway like this, you can leave your car at home or at designated parking spaces and travel to your appointments within the city by train,” she said. “It will be faster, cheaper and more convenient.”

According to the plans revealed by the consortium, the subway system will connect key points in the city such as the current central business district along Ayala Avenue, the Makati City Hall, the Poblacion heritage site, the University of Makati, Ospital ng Makati and the other new business districts within the city.

Its J-shaped 10-kilometer route will begin under the present site of the Makati Central Fire Station near the intersection of Ayala and Gil Puyat Avenues, and will end at the University of Makati at the border of Bonifacio Global City in Taguig. The original proposal called for a U-shaped route that would have started under the former Hotel Intercontinental at the corner of Ayala Avenue and Edsa, but no agreement could be reached by the project proponents with Ayala Corp. which owned the bulk of the properties along the country’s most expensive business address.

“In any case, we can add that later on if they change their minds,” Tiu said. “For now, the project that we have will be very beneficial, viable and profitable for all the stakeholders.”

The proposed dual track subway system will have up to 10 air-conditioned, underground stations that can accommodate up to six car trains, with a room for over 200 passengers per car. Over 700,000 passengers per day will be accommodated and served by the proposed mass transport system.

It will complement other mass transport systems, such as the Metro Rail Transit 3 on Edsa, the Pasig River Ferry System and the proposed Metro Manila Mega Subway.

Philippine Infradev said it planned to extend the subway out of Makati, possibly to the neighboring cities of Pasay, Pasig, San Juan, Mandaluyong or Manila.

Apart from the revenue share, the subway system is seen to improve the flood system of the participating city, given that good pumping and drainage system will be installed underground.

“At the same time, this project will also create thousands of jobs during the construction phase, as well as during the operation phase,” Tiu said, explaining that, apart from the subway’s operations, the 10 subway stations will also create a mini retail boom through the retail stores and dining establishments that will locate in the air-conditioned premises.

“It will be similar to what you can find in Hong Kong, Singapore or Tokyo,” he said.

Already, Mayor Binay is looking way beyond the subway’s completion in 2025.

“Yes, this will make this great city even greater,” she said. “But more importantly, it will also be our legacy to future generations: the country’s first subway system.”

Fingers crossed.

SOURCE:

Ambitious Makati subway plan sees the light of day

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