Ayala Land’s Alveo eyes P4B in sales from biggest project so far

Posted on 09:50 PM, March 10, 2010 [ BusinessWorld Online ]

PROPERTY giant Ayala Land, Inc. is expecting to book P4 billion in sales for its P2.1-billion high-rise condominium at the Bonifacio Global City until 2015.

The 40-storey, 717-unit Meranti, the third of four towers in the Two Serendra project of Ayala Land’s Alveo brand, marks the biggest single-tower project of Alveo to date, officials said in a briefing.

The company eyes launching up to four more projects this year to cater to increasing demand.

We will reach the P4-billion mark for Miranti in terms of total sales,” Alveo President Dante M. Abando told reporters. “In as far as single tower is concerned, it is the largest development in eight years.”

Property giant Ayala Land will concentrate on its Alveo
and Avida brands, execut ives said yesterday.

“[Priority sales last week was] close to P750 million... We are expecting that to go over the P1 billion in the launching [next week],” Ayala Land Senior Vice-President Rex A. Mendoza said.

In last week’s “priority selling” to previous customers, Alveo sold 90 units, executives said.

There will be 178 36-42-square-meter studio-type, 424 51-61-sq. m. one bedroom, 83 two-bedroom and 32 three-bedroom units, each costing about P110,000 per sq. m.

Meranti targets the middle to upper income segments.

Turnover will start in the fourth quarter of 2015.

“Based on our experience in Aston and Red Oak, the one-bedroom unit is the most sought after,” Mr. Abando said.

The first two towers in the two-hectare Two Serendra, the Aston and Red Oak, have 400 units and 520 units, respectively.

But Mr. Abando said: “[The fourth and last tower] is going to be the tallest tower. We are still in the drawing board for that but we envision that to be the tallest tower.”

Last year, Alveo launched three projects. Projects of the eight-year-old brand includes the four-hectare boutique townhouse Ametta Place in Pasig , the 60-hectare upscale subdivision Treveia in Laguna, towers and residential units in Celadon Manila, The Columns in Ayala Avenue, and Two Serendra.

Last year, Alveo contributed P655 million or 16% to the total net profits of the residential business group, Mr. Mendoza said. In terms of property value, Alveo accounted for about 30%.

Ayala Land is operating under three major brands -- Ayala Land Premier for the high-end segment, Alveo Land for the middle-income segment, and Avida for the “affordable” market. Ayala Land will launch its economic housing unit Amaia this year.

Ayala Land is aiming at selling 9,000 residential units this year with a total sales value of roughly P40 billion.

Moving forward, Ayala Land will concentrate on the Alveo and Avida brands.

Mr. Mendoza noted that the share of Ayala Land Premier in terms of value dropped to about a third from 80% a few years ago.

Ayala Land saw profits decline by more than a tenth last year, as the global economic downturn dampened the real estate sector.

Shares in Ayala Land dropped by P0.25 yesterday to P11.00 each. -- Neil Jerome C. Morales

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