By Jenniffer B. Austria | Posted on Nov. 12, 2012 at 12:01am | [ manilastandardtoday.com ]
Ayala Land Inc., the country’s biggest property company, has increased its programmed project and capital expenditures for the whole year of 2012 to P70 billion from the original target of P37 billion due to “unbudgeted property acquisitions.”
Ayala Land in a filing with the Philippine Stock Exchange said the company expects to spend P33 billion for property acquisitions to boost its landbank for future development.
“…due to attractive opportunities presented by the market, full-year consolidated budget for project and capital expenditures is projected to reach P70 billion,” Ayala Land said.
The property firm in October made an initial payment of P19.46 billion to the national government for the acquisition of 74 hectares owned by Food Terminal Inc. It will pay the balance of P4.8 billion next year.
The company is also in talks with the Ortigas Group for a possible joint venture.
Ayala Land said it would fund the P70-billion capital spending through a combination of internally-generated funds, borrowings and pre-selling.
It said the property acquisition “will ensure the pipeline of value accretive projects beyond the current five-year plan.”
Ayala Land said it spent P34.9 billion in project and capital expenditures in the first nine months of the year, up 73 percent from P20.2 billion year-on-year.
It spent the bulk of the capital in the nine-month period on residential developments, 31 percent; land acquisition, 44 percent; shopping centers, 11 percent; hotels and resorts, 9 percent; and the balance on BPO offices and other land development activities.
The P34.9 billion spent in the first nine months accounted for 94 percent of the initial capex program of P37 billion this year.