By Neil Jerome C. Morales (The
Philippine Star) Updated November 07, 2012 12:00 AM
MANILA, Philippines - Property giant
Ayala Land Inc. (ALI) is entering the convenience store business in partnership
with Japanese conglomerate Itochu Corp.
The development will allow the
Ayala-led firm to provide a retail format in its mixed-use communities, the
company said.
“ALI, through SIAL CVS Retailers Inc.,
signed a shareholders’ agreement with FamilyMart Co. Ltd. and Itochu for the
development and operations of FamilyMart convenience stores in the
Philippines,” the firm said in a disclosure to the stock exchange.
SIAL is a joint venture between ALI
and the Rustan’s Group’s Stores Specialists Inc., one of the largest specialty
retail firms in the Philippines.
“This partnership, which combines
ALI’s expertise in developing mixed-use developments and its partners’ proven track
record in the retailing business, will enable ALI to provide a retail format
that will support its mixed-use communities,” the property firm said.
ALI is into residential and office
development, and shopping mall and hotel operations.
The convenience store business will
also grow its recurring income portfolio, ALI said.
The entry of FamilyMart in the
Philippines will provide a challenge to dominant players MiniStop of the
Gokongweis and global franchise brand 7-Eleven.
FamilyMart and parent firm Itochu are
listed at the Tokyo Stock Exchange.
To date, FamilyMart is the second
largest convenience store retailer in the world with more than 20,000 stores in
eight countries including Japan, South Korea, Thailand, China and the US.
Itochu, for its part, is one of the
biggest trading conglomerates in Japan. It is into domestic and overseas
trading of various products like textile, machinery, metals, minerals, energy,
chemicals, food and construction.
In the Philippines, Itochu is engaged
in the liquefied petroleum gas business through Solane, under a joint venture
with the Delgados’ Citadel Holdings Inc.
ALI has earmarked P37 billion for its
capital spending this year – its highest capital expenditures ever – mostly to
go to residential projects, followed by shopping centers and hotels.
ALI maintained its upward trajectory
in the first half this year with net earnings rising 28 percent to P4.33
billion on steady growth across all product lines.
Its consolidated revenues climbed 18
percent to P25.02 billion, bulk of which or P23.82 billion came from real
estate and hotels, which represented an increase of 19 percent from the
previous level.
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