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.
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