Posted on January 17, 2012 10:37:57 PM [ BusinessWorld Online ]
BY FRANZ JONATHAN G. DE LA FUENTE, Reporter
MIDDLE-income property developer Alveo Land Corp., a unit of listed Ayala Land, Inc., is investing over P50 billion within the next two-and-a-half decades to develop a new mixed-use district in Bonifacio Global City (BGC) in Taguig City, a ranking official said on Tuesday.
“Ayala Land is reinventing the BGC landscape by pouring in approximately P60 billion worth of investments across a 25-year pipeline to the development of a pioneering district development ideal that is High Street South,” said Robert S. Lao, Alveo Land president, in a press statement released yesterday.
The 7.6-hectare High Street South, located south of the existing Bonifacio High Street retail complex, is envisioned to be BGC’s “cultural district” spanning three blocks.
The development will allow for around 12 to 18 residential towers, with a total gross floor area of 735,000 square meters.
Alveo Land intends to invest approximately P3.5 billion for High Street South’s first residential condominium, the 33-storey The Meridien, which has a total projected sales value of P5.1 billion.
“It will be a revolution in city living since all the basic necessities for a live-work-play lifestyle are there,” Antonio S. Sanchez III, Alveo Land project development group division manager, told reporters in a press briefing in Taguig City yesterday.
He added that The Meridien will “definitely attract Alveo Land’s typical market of urban achievers, early nesters, and investors.”
Launched last November, construction will begin this quarter and will feature 511 residential units with an array of living configurations:
studio, one-bedroom, two-bedroom and three-bedroom, as well as bi-level units.
The Meridien’s first two floors will be allotted for retail outlets, while the third floor will house amenities such as themed function rooms, a lounge area, gym and fitness area, children’s play area, and swimming pool with deck.
A studio unit is seen to cost as much as P5.0 million, while a penthouse unit will sell for around P18.8 million.
Meanwhile, plans for the launch of a second tower in the third quarter are already underway, buoyed by the record P2.15-billion sales of 222 units of The Meridien as of Jan. 16 this year.
“The sales response for High Street South showcases the kind of excitement and anticipation that the market has for a project of this scale,” Mr. Lao said.
Further, High Street South will also feature provisions for future office, commercial, and hotel developments that will complement its residential segment, Mr. Sanchez added.
This comes on top of a robust year for the middle-income developer.
Last year, Alveo Land launched a record nine projects and 2,700 units by expanding its geographic footprint and developing new products as well, said Jennylle S. Tupaz, Alveo Land vice-president for project development, in the same press briefing.
For 2012, Alveo Land aims to ramp up its portfolio and launch an average of one project per month in the country’s major urban growth centers, Ms. Tupaz said without elaborating.
Ayala Land, Alveo Land’s parent firm was organized in 1988 when conglomerate Ayala Corp. decided to spin off its real estate division into an independent subsidiary to enhance management focus on its real estate business. Ayala Land went public in 1991.
The listed company’s nine-month net income last year rose by 33% to P5.23 billion from P3.94 billion recorded in the same period in 2010.
Consolidated revenues in the January to September period advanced by 17% to P32.63 billion versus P27.87 billion, while expenses climbed by 13.47% to P24.813 billion from P21.867 billion year-on-year.