Posted on September 23, 2014 10:38:00 PM [ BusinessWorld Online ]
AYALA LAND, Inc. (ALI) and Leonio Land Holdings, Inc. are looking at P15 billion in potential revenue from the first phase of the Alviera project in Porac, Pampanga -- Ayala Land’s largest mixed-use community in Central Luzon.
The 207-hectare phase one, which will be launched on Thursday, entails P8 billion in investment and will house the Alviera Industrial Park, three residential communities, two educational institutions, and the Alviera Country Club.
The funds will be sourced from a combination of internal cash generated by the proceeds of Alviera sales, as well as debt, Ayala Land President Bernard Vincent O. Dy said at a briefing on Tuesday at the Holiday Inn and Suites Makati.
Profit sharing between Ayala Land and Leonio Land is 55% and 45%, respectively, while the project will be undertaken by Ayala Land subsidiary Nuevocentro, Inc.
The 30-hectare industrial park, accredited by the Philippine Economic Zone Authority, will cater to non-polluting light industries and include standard factory buildings in customizable sizes for lease. The park is expected to generate 5,000 jobs.
“These lots are differentiated from most other industrial zones by the fact that locators are not limited to leasing the lots. They can own them.
We will give preference to buyers with immediate development plans to help create job opportunities in the near future,” Anna Ma. Margarita B. Dy, Ayala Land’s vice-president and head of Strategic Landbank Management Group, said during the briefing.
Local manufacturers with export products have already shown interest, as well as Chinese, South Korean and Taiwanese manufacturers, according to Rowena M. Tomeldan, Ayala Land’s vice-president and head of Operations and Support
Commercial Business Group.
The residential segment will house three Ayala Land brands: Ayala Land Premier, which will “create a new Forbes park in Pampanga”; Alveo Land, which will cater to mobile young families; and Avida Land, which will provide “highly affordable” house and lot packages.
The houses will cost P10,000-P15,000 per square meter (sq.m.) and have a floor size ranging from 150-1,000 sq.m.
More than 1,500 residential units will be developed for the first phase and will be for sale between October and November this year, the company said.
The development will also house Holy Angel University and Miriam College, while the six-hectare Alviera Country Club will start selling shares by October and will be operational by 2016.
Development of the second phase is scheduled for between 2017 and 2022. Its components include retail and commercial spaces, hospitals and hotels, among others.
“The development will house a full range of Ayala Land’s products,” Mr. Dy said.
In total, the 1,100-hectare Alviera project is expected to have 65,000 residents, 20,000 office and industrial workers, and 20,000 students.
Asked about an ongoing land dispute with Porac farmers, the company said it ensured that the land is not suitable for agriculture before proceeding with the project.
“The parcels of land have CARP (Comprehensive Agrarian Reform Program) exemption orders from the DAR (Department of Agrarian Reform), which was upheld with finality -- also by the DAR. Before we embarked on this project, we undertook due diligence to really understand whether the property is developable,” Ms. Dy said.
Ayala Land’s first-half net profit rose 25% to P7.1 billion, while revenue increased 26% to P46.2 billion.