Posted on May 13, 2012 10:03:53 PM [ BusinessWorld Online ]
AYALA LAND, Inc. plans to start work on another mixed-use development in partnership with the University of the Philippines Diliman, this time at the site of its preparatory school along Katipunan Avenue.
“We are targeting to break ground on the UPIS (UP Integrated School) project by June of this year,” Pamela T. Perez, Ayala Land investor communications and compliance head, told BusinessWorld in a text message.
Ayala Land had earlier bared plans to develop the UPIS complex -- which sits on a 7.4-hectare lot outside the main UP Diliman campus -- into a P3-billion, mixed-use complex with retail and office components, similar to the UP-Ayala Land TechnoHub on Commonwealth Avenue.
Part of the deal entailed the transfer and construction of a new UPIS building within the UP Diliman campus grounds.
“The high school of UP is now under construction. I think that will be completed within this year,” Alfredo E. Pascual, UP president, told BusinessWorld in a separate interview.
“After the high school [department] has been fully transferred to the academic zone of UP Diliman, Ayala Land should also be able to fully start the development of the [current] UPIS campus,” Mr. Pascual added.
The new UPIS building will be located on the site of the old Narra Residence Hall, according to earlier reports.
The state university will be receiving a portion of the revenues from Ayala Land’s operations of the new development.
“The revenues will come in the form of lease rental of the property.
There is a guaranteed minimum amount. On top of that, if the revenues of Ayala Land will go beyond a certain point, we will be sharing a percentage of the property’s revenues,” Mr. Pascual said.
Asked about the estimated proceeds, Mr. Pascual only said: “We will talk about that when the development is already in place.”
Ayala Land had earlier said it was keen to build develop large, mixed-use complexes similar to its existing 1,860-hectare NUVALI project in Laguna, with possible sites identified in provinces north and east of Metro Manila.
Ayala Land hiked its net income for the first quarter by 31.48% to P2.13 billion as better sales in most property segments offset an increase in expenses. – FJGDLF