By Zinnia B. Dela Peña (The Philippine Star) Updated March 05, 2010 12:00 AM
MANILA, Philippines - Property giant Ayala Land Inc. (ALI) signed a 35-year lease agreement to develop a two-hectare property in Iloilo City into a business process outsourcing (BPO) hub.
In a disclosure to the Philippine Stock Exchange, ALI said the project with Riverside Boardwalk Properties Inc. will involve the development of three BPO facilities that will make available a total of 19,000 square meters of gross leasable area (GLA).
The initial phase will involve the construction of one building with approximately 9,500 square meters of GLA and estimated project cost of P305 million. Construction is scheduled to start in the second quarter this year and is expected to be completed by the first quarter of 2011.
Iloilo City is identified by the Business Process Association of the Philippines (BPAP) as one of the Next Wave Cities for BPO firms. It has an attractive power, telecommunications, commercial sea and airport infrastructure and offers one of the lowest rental, power and average base pay rates in the country.
ALI’s project will be the biggest BPO development in Iloilo to date and is consistent with the company’s goal of expanding into, developing and redeveloping strategic areas within attractive growth centers across the country in order to deliver on the expectations of its customers and shareholders.
ALI has set a capital expenditure budget of a record P27.2 billion this year to cover expenses related to the launch of new residential and leasing projects, as well as some possible land acquisitions “as the company aims to further broaden its presence in the country.”
The 2010 capex, which is 68 percent higher than the amount spent the previous year, includes the company’s entry into the development of boutique hotels with the first one to rise in the booming Bonifacio Global City.