Saturday, August 15, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
The board of listed property developer Ayala Land, Inc. has approved the creation of a new subsidiary that will enter the low-end housing segment dominated by smaller developers.
In a statement on Friday, Ayala Land said intends to capitalize the new subsidiary with P1 billion over the next three years to fund operating expenses and the acquisition of land.
Initial capitalization will cover the new firm’s first six projects in select industrialized rural areas in Southern and Central Luzon, where demand is expected to be strong.
Ayala Land said the new subsidiary would be "separate and distinct" from its three existing brands — Ayala Land Premier, Alveo Land, and Avida Land — but initial launches for the new product line would be under a sub-brand of Avida Land.
"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," the statement quoted Ayala Land President Antonino T. Aquino as saying.
Ayala Land said the new subsidiary’s product offerings would involve mainly house-and-lot "starter home" packages with prices ranging from Php600,000 to Php1.25 million per unit.
The new subsidiary plans to launch its first project in Laguna within the first quarter of 2010.