Published on Sunday, 17 February 2013 23:00
[ Malaya.com.ph ]
Written by AMADO P. MACASAET
By A Web
design Company
Malaya
Business News Online - Philippine Business News | Online News Philippines
Ayala is
reported to be selling 2,000 sq.m. lots from the 74 hectare property at five
times the acquisition cost. Ayala two decades ago started developing Ayala
Alabang which sold like hot cakes, the developer now seems it will replicate
the Alabang success.
Instead of
borrowing from the banks to set up infrastructures on the 74-hectare property
in Paranaque City bought from the
state-owned Food Terminal, Inc., Ayala Land will sell a portion of that prime property.
Commitments
have been made to buyers but official documentation cannot be prepared until
ALI gets authority to sell from the government.
Ayala Land
bought the property for about P24 billion or roughly P36,000 per square meter. Several buyers are said to be willing to pay
as much as P150,000 per square meter or
about five times the acquisition price.
The supposed
plan to sell has not been confirmed by Ayala Land.
Sources said
ALI plans to sell in minimum lots of 2,000 square meters. They pointed out that the sudden spike in
real estate prices might have resulted from the purchase by boxing icon Manny
Pacquiao at double the price the home of Lorenzo Tan in posh Forbes Park.
Tan, younger
brother of Nelson, president of Banco de
Oro Universal Bank, is president of Rizal Commercial Banking Corp.
Observers in
the property development market said
buyers are attracted to buy lots in FTI riding on the reputation of the Ayalas
in property development and other business ventures including banking.
The entire
FTI property has a total area of 102 hectares.
It is in the name of National Food Authority.
Ayala Land
has to spend billions in infrastructure.
The
government decided to keep 24 hectares which will be used as agricultural
trading center. Another five hectares is
to be used by the Department of Transportation and Communications as bus
terminal.
The terminal
will ease the traffic mess particularly in Paranaque and Pasay cities, Makati
City and the center of Manila.
A couple of
decades ago, Ayala Land bought the land of Ayala Alabang from the
Madrigals. ALI was swamped with
buyers. Ayala Alabang is now a high-end
residential area of around 200 hectares.
The residents
of Ayala Alabang made possible the rapid growth of a shopping complex it also
owns in Alabang. The complex was
developed almost simultaneously with the
construction by buyers of homes they bought from Ayala Land.
The benefit
of a high-income community such as Ayala Alabang extends to the Filinvest Land of the Gotianuns who set up a
supermarket and built several apartment buildings and a hotel in the former
property owned by the National Stud Farm.
Observers in
the property development sector are saying Ayala Land is selling a portion of
FTI in lots of not smaller than 2,000 square meters in the expectation that
many of the buyers are speculators.
If Ayala Land
intends to expand its operation in FTI after its project is completed, the
company may decide to buy back at a remarkably higher price. The difference may have largely covered by
the profits it will make selling part of FTI as soon as it gets a permit from
the government.
However, it
will make enough profit selling part of the land now. Whatever additional price it may have to pay
buying back the land would have been largely covered by savings in interest
costs and profits from present sale.
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