By Zinnia B. Dela Peña (The Philippine Star) Updated February 20, 2010 12:00 AM
MANILA, Philippines - Property giant Ayala Land Inc. (ALI) is further expanding in Mindanao with the construction of an integrated mixed-use complex in Cagayan de Oro, estimated to cost at least P2.5 billion.
In a disclosure to the Philippine Stock Exchange, ALI senior vice president and chief finance officer Jaime E. Ysmael said the proposed project, which will rise on a 3.2-hectare property along Claro M. Recto Ave. at the heart of Cagayan De Oro City, is in partnership with Anfilo Management & Investment Corp. and Mindanao Motors Corp.
Ysmael said around P2.5 billion will be initially spent for the development of the centerpiece shopping mall with approximately 40,000 square meters of gross leasable area. The mall will offer basic conveniences addressing the everyday needs of the city, as well as unique, dining, entertainment and retail concepts that will serve immediate communities, tourists and transients, he said.
Construction on the shopping mall is expected to begin towards the end of 2010 and will be completed by 2012.
Ysmael said another component of the project is the construction of a boutique hotel and an office building catering to the business process outsourcing (BPO) sector.
“With Ayala’s unmatched experience in developing world-class real estate developments and the Anflogroup’s strong corporate presence in the area, the project is designed to be an integrated mixed-use development that will change Cagayan de Oro’s urban landscape,” Ysmael said.
Cagayan de Oro is a trade and commercial center serving as a transport hub for Northern Mindanao, and is considered a high-growth area.
Ysmael said this project is the second partnership between ALI and Anflogroup in Mindanao. In 2007, the two groups teamed up for the development of Abreeza Mall in Davao City, which is slated for opening next year.
“Both ventures are consistent with the company’s goal of expanding, developing and redeveloping strategic areas within attractive growth centers across the country in order to deliver additional value for its customers and shareholders, while being a strong partner in nation-building,” Ysmael said.
ALI is going full blast with the construction of new projects this year in line with efforts to further expand its geographic base and launch new business lines and market segments.
The company will also aggressively expand its shopping centers to bring total gross leasable area to more than one million square meters by the end of 2011. The expansion will involve MarQuee Mall in Angeles City with a total of 37,000 square meters of GLA and the Davao Mall, which will contribute an additional estimated 94,000 square meters GLA next year.
With control of 52 hectares of land in the Makati central business district and another 33 hectares in Bonifacio Global City, ALI has delivered an average total shareholder return on equity of 42 percent per annum over the past five years.
ALI’s parent firm, Ayala Corp., is one of the country’s largest conglomerates with diversified operations in real estate and hotels, telecommunications, financial services, water distribution, electronics manufacturing, information technology and automotive dealerships.