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Ayala to build on old Nescafé factory

Posted on June 19, 2012 09:48:16 PM [ BusinessWorld Online ]

AYALA LAND, Inc. plans to put up a mixed-use development on a 6.6-hectare site formerly occupied by Nestlé Philippines, Inc.’s coffee factory in Muntinlupa City.

Avida Land Corp., the mass housing arm of the developer, will be the project proponent, adding to its existing two-structure Avida Towers Alabang in the area, Ayala Land said in a statement yesterday.

“This move allows us to offer our products to a bigger market and provide more Filipinos the ability to experience living in sustainable Ayala Land communities, as we are always on the lookout for opportunities that will allow us to grow geographically,” said Jaime E. Ysmael, Ayala Land chief finance officer.

Aside from Avida Towers Alabang, Ayala Land has the 700-hectare upscale Ayala Alabang Village and the newly-expanded, Mediterranean-inspired Alabang Town Center commercial complex in the area.

Ayala Land’s latest acquisition in Muntinlupa City forms part of the company’s P8-billion land banking budget for this year, the statement added.

For 2012, the developer has allotted a record P37 billion in capital expenditures to fund around 67 new projects with an estimated sales value of P90 billion, as well as for the acquisition of new properties moving forward.

Aside from its investments in Muntinlupa City, Ayala Land has also developed other projects in southern Luzon such as the 1,860-hectare NUVALI mixed-use township in Canlubang, Laguna, where it recently poured P12.5 billion to boost its commercial and residential developments there.

In central Luzon, Ayala Land said in April that it was interested in tapping the Pampanga-Bataan-Zambales corridor for future residential and office developments, on top of the company’s recently-opened Harbor Pont mall in Olongapo City, Subic Bay.

Ayala Land hiked its net income for the first quarter by 31.48% to P2.13 billion from P1.62 billion last year as better sales in most property segments offset an increase in expenses.

Total consolidated revenues, mostly from real estate, rose by 17% to P12.39 billion versus P10.59 billion, year on year, while costs and expenses grew by 12.69% P9.15 billion from P8.12 billion in the same period last year.

Ayala Land tapped the bond market last month, listing P15 billion worth of fixed-rate callable bonds, whose proceeds will be used to fund part of the firm’s 2012 capex.

Ayala Land is also issuing 13.04 billion voting preferred shares to its common shareholders via a 1:1 stock rights offer, in a move that is seen to increase the company’s Filipino-owned stock and lower the foreign ownership level of its voting shares to a desired 19% from 38% as of end-January this year.

Last year, the Supreme Court issued a ruling ordering the Securities and Exchange Commission to use a company’s voting shares in applying the constitutionally-mandated 40% foreign ownership cap.

Shares of Ayala Land rose by 0.92% to P22.00 apiece at the end of trading yesterday from P21.80 at its previous close. -- FJGDLF

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