April 7, 2014 9:56 pm by Madelaine B. Miraflor [ manilatimes.net ]
AYALA Land Inc. (ALI) plans to build over the next five years a major commercial, hotel and residential complex on a 74-hectare plot of land at the Food Terminal Inc. (FTI) complex in Taguig city at a cost of about P80 billion.
Aniceto Bisnar, ALI vice president for strategic planning management group, said the company will build hotels, office buildings and residential projects using 480,000 square meters of developable premises on the site. The government sold 74 hectares, out of 120 hectares at the FTI complex, to ALI in November 2012 for P24.3 billion.
ALI will name the project Arca South.
Newly-elected ALI president and chief executive officer Bobby Dy said the company plans to build more mixed-use integrated estates in the country.
“Basically, we’ve laid out plans over the next few years. This is very similar to what we have been doing. We want to continue to expand our mixed-use developments. We want to make sure we keep on introducing our market-leading mixed use integrated estates in these all-growth centers. We also plan to offer more and more affordable products,” he said.
He added that ALI is formulating a new five-year development plan after achieving previous targets.
“We are currently looking at a five-year plan which is not finished yet in terms of our own timeline. What we’ll do over the next quarters is what our plan will be over the next five years,” he said.
Dy, previously ALI’s chief operating officer, recently succeeded Antonino Aquino, who served the Ayala Group for more than 30 years.
Dy said ALI is now trying to forge joint venture agreements with prospective local partners in Myanmar and Vietnam.
“We’re still in the process of negotiating on an actual joint venture agreement in Vietnam. In Myanmar, we are now doing due diligence,” he said.
“[These partnerships are] primarily residential for now, or maybe a little bit of retail. Once we signed agreements, we want to move quickly and get things done over the next 12 to 18 months,” he added.
He said ALI is working with its Myanmar joint venture retail partner for a possible launch towards the end of year of their first project, which may require an investment of about $30 million.
“Of the $30 million investment cost, our share is $10 million, not a huge investment on our part. We don’t expect to have a lot of capital allocation to international investments. About 90 percent of our capital expenditures this year is still for domestic expansion,” Dy said.
The company is set to issue this year bonds worth about P15 billion. The proposed bond issues, which will be in several tranches, will have a maturity of 11 years.