BY ALBERT CASTRO [ Malaya.com.ph ] November 10, 2011
AYALA Land Inc. yesterday formally launched its socialized housing unit even as it announced its first project, a 21-hectare development in General Trias, Cavite. The company is expanding its product line to cut across segments in the property market.
Ayala Land reported a 33-percent surge in profit to P5.23 billion from P3.94 billion.
Ayala Land’s unit South Maya Ventures Inc., yesterday unveiled BellaVita, offering 34-square-meter units in duplex, quadruplex and multipod designs that will be sold between P400,000 and P800,000 per unit. This forms part of the company’s offering for the socialized housing segment, which is mostly composed of minimum-wage-earning individuals and families.
Antonino Aquino, Ayala Land president, said the project will be appropriate for families who can cover a monthly amortization of P2,500 to P2,800.
"Our social enterprise housing project is designed for minimum wage earners," he said.
BellaVita, which will be developed in two phases, is offering a total of 1,378 units, developed at a total of P600 million.
Lyle Abadia, South Maya president, said BellaVita will be a gated community that will also have a one-hectare retail area of its own, similar to what people call a "talipapa" (mini-wet market) in the community.
Antonino said South Maya will be unveiling similar projects all over the Philippines, focusing on areas that are considered "employment centers" such as key towns and regional centers in Northern and Southern Luzon, the Visayas, and Mindanao.
Aquino said that given the prospect of the market segment on which South Maya is focusing, it is very likely that it will become the biggest contributor on Ayala Land’s income profile in 10 years’ time.
South Maya is Ayala Land’s fifth brand after the launch this year of Amaia, which focuses on the affordable housing market. Ayala Land’s other brands are Ayala Premier, Alveo, and Avida.
Ayala Land, meanwhile, attributed the growth of profit for the first nine months to continued strength of its major business lines.
Ayala Land reported consolidated revenues of P32.63 billion, up 17 percent from P27.87 billion last year. Revenues from real estate and hotels comprised the bulk of consolidated revenues and hit P30.81 billion, largely driven by continued growth in the property development and commercial leasing businesses.
"Margins of the company’s key business lines continued to improve with strict control of project costs and direct operating expenses," the company said in its regulatory filing.
Ayala Land’s profit margin improved to 16 percent from 14 percent the previous year, while its Ebitda (earnings before interest, taxes, depreciation and amortization) margins from shopping centers and business process outsourcing (BPO) office buildings and gross profit margins of vertical residential projects and commercial and industrial lot sales also got better continuously.
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