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Ayala Land to hike capex by P10 billion

Posted on August 06, 2012 09:49:54 PM [ BusinessWorld Online ]

LISTED DEVELOPER Ayala Land, Inc. plans to add P10 billion to its capital expenditure for 2012, which was earlier pegged at P37 billion as it looks to buy more lots and bankroll a “strategic” partnership with the Ortigas family.

  “The company expects to spend an additional P10 billion on unbudgeted property acquisitions until yearend, which will ensure the pipeline of value-accretive projects beyond the current five-year plan,” Ayala Land said in its latest financial statement.

For 2012, the developer had allotted a record P37 billion capex 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, earlier reports stated.

Ayala Land then went on to raise P13.6 billion in paid-up capital via the placement of 680 million common shares priced at P20 apiece, and the issuance of an equal number of similarly-priced new shares.

“The P13.6-billion overnight equity top-up placement we just did is intended to finance this additional unbudgeted capex, which is primarily earmarked for additional land banking,” Jaime E. Ysmael, Ayala Land chief finance officer, told BusinessWorld in a text message Saturday.

Further, the additional budget allocation may also be used to bankroll Ayala Land’s proposed tie-up with the Ortigas family’s holding company, which in turn holds vast tracts of land in Metro Manila.

“Part of this capex has been allocated for the Ortigas alliance,” Mr. Ysmael added.

Shares of Ayala Land rose by 1.34% to close at P22.70 each yesterday. -- Franz G. de la Fuente            
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