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Ayala Land profits up by a third; new mall to be built in Fairview

Posted on 06:41 PM, August 06, 2010 [ BusinessWorld Online ]

THE PROPERTY unit of the Ayala group earned P1.32 billion in the second quarter, up by 10% on the back of across-the-board growth in its businesses, particularly leasing and construction. This brought net income to P2.51 billion in the first half, up by a third, Ayala Land, Inc. said in a statement Friday.
Ayala Land said it was pursuing new projects to spur more growth, inking a deal with a chain of supermarkets to build a new mall in Quezon City’s Fairview district, which will be its ninth shopping complex.
Consolidated revenues for the first half reached P18.45 billion, 28% higher year-on-year, "largely due to the strong growth in the residential and construction businesses," it said. "The company’s leasing operations in shopping centers, offices and hotels likewise performed well and contributed to overall revenue growth."
Ayala Land said residential revenues reached P8.56 billion for the first six months, 25% higher "with strong growth in bookings exhibited by [the] Ayala Land Premiere, Alveo and Avida [housing brands]." Along with newly launched fourth brand Amaia for lower-cost housing, Ayala Land launched a total of 7,091 units in the first six months, or 76% of the firm’s original target of 9,275 units for the year.
"We expect demand in the residential sector to remain strong, thus we have increased our full-year target in 2010 to nearly 12,000 units," Ayala Land President Antonino T. Aquino said.
Shopping centers reported P2.35 billion in revenues, 6% higher than in the same period last year. "This was driven by the net expansion in occupied gross leasable area as the addition of MarQuee Mall in Pampanga and improving occupancy rates at Greenbelt 5 and Market! Market! more than offset the closure of Glorietta 1," the firm said, referring to the portion of the Glorietta mall in Makati undergoing renovation.
Revenues from office buildings reached P844 million, a 7% improvement as gross area for lease went up to 50,859 square meters. Ayala Land said occupancy at outsourcing complexes reached 67%, with a 79% "lease-out" rate.
Ayala Land said it had signed a 30-year lease agreement with Ellimac Prime Holdings, Inc. of the Puregold and S&R Stores group for the development of a six-hectare property in Fairview.
"This is where [Ayala Land] plans to develop its next major shopping center in Quezon City following the success of TriNoma in the North Triangle area. The project is expected to break ground in the fourth quarter of 2011," it said.
Last Aug. 3, Ayala Land signed a joint venture agreement with the Sino-Singapore Tianjin Eco-City Investment and Development Co., Ltd., for the development of a 9.78-hectare residential project in China.
The property firm said it would develop a 19-tower residential complex with over 1,100 units at Tianjin Eco-City near Beijing, with construction of the first 11 towers to begin before the end of 2010.
Shares in Ayala Land closed P0.08 higher at P15.80 apiece on Friday.

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