Posted on March 03, 2015 09:56:00 PM [ BusinessWorld Online ]
By Daphne J. Magturo, Reporter
ALVEO Land Corp., the upscale subsidiary of property giant Ayala Land, Inc. (ALI), plans to grow revenues by up to 20% this year as it launches 10 new projects.
The company said it could generate P40 billion in sales from those projects.
“Our target is to increase [revenues] by 15% to 20% in the long term.
We are following Bobby Dy’s 2020 Vision,” Alveo President Robert S. Lao said in a briefing at the company’s headquarters in Bonifacio Global City yesterday.
Mr. Lao was referring to the president of Ayala Land -- Bernard Vincent O. Dy -- who set a target of growing profit by a fifth annually to P40 billion by 2020, from P11.7 billion in 2013.
Alveo’s sales reached P36 billion last year, while net income was P2.8 billion. The company’s compounded annual growth rate for the past three years is 21%.
Out of ALI’s P100-billion capital expenditure budget this year, Alveo will be allotted P10 billion, which is the same amount it spends annually.
“Last year, we spent around P5 billion for land acquisition and we are targeting to do the same every year in order to sustain it,” Mr. Lao said.
For the first half of 2015, Alveo will launch six projects worth P25 billion.
These are The Stiles Enterprise Plaza in Circuit Makati; High Park Tower 2 in Vertis North, Quezon City; The Veranda East Tower in Arca South and Park Triangle Residences -- both in Bonifacio Global City, Taguig City; as well as lots for sale in Nuvali in Laguna and Alviera in Pampanga.
“We’re very confident that’s why we’re launching one project almost every month. We’re that aggressive,” he added.
Meanwhile, plans for the second half of the year include new subdivisions in Cagayan de Oro, as well as in San Jose del Monte in Bulacan, in partnership with the Araneta group.
With land bank for sale hard to come by in Metro Manila, Mr. Lao said Alveo is now setting its sights on acquiring new properties in Cavite, Laguna, Batangas and Bulacan.
At present, Alveo has a land bank of 1,000 hectares.
“We are neither luxury like Ayala Land Premier, nor economic like Avida Land so we are really in that sweet spot. We are able to attract the broader market wherever we go,” Alveo Vice-President Jennylle S. Tupaz said in the same briefing.
Established in 2002, Alveo’s portfolio is now composed of 36 projects in Makati, Taguig, Pasig, Quezon, Manila, Cebu, Davao, Pampanga, Cavite, Laguna, and Tagaytay.