AYALA LAND, Inc. (ALI) is in talks with a company in the ASEAN
(Association of Southeast Asian Nations) region for potential
partnerships in the real estate market.
“Meron na (We have one), we’re in discussions,” ALI Chief
Financial Officer Augusto Cesar D. Bengzon told reporters when asked if
they have a new partnership overseas, saying they are looking for a
platform to grow through a company or local organization.
Mr. Bengzon declined to disclose further details, but noted the company is based in one of the 10 ASEAN countries.
“When we look at our international strategy, the focus is on ASEAN
region, and potentially second tier China cities. Our preferred mode of
entry is through a organizational company which will provide us the
platform… You need local expertise, and therefore it’s best to partner
with a local team that knows the market,” Mr. Bengzon explained.
He also added they prefer partnering with companies that already have a landbank.
This is the same strategy that ALI employed when it first planted its
flag in Malaysia. The company initially purchased a 9.16% share in
Malaysian firm MCT Bhd. in 2015, eventually increasing its stake to
72.31% last February. MCT is involved mainly in affordable residential
condominium projects.
“We’ve installed the CEO (chief executive officer) and from what we
are seeing, there are also quite a number of opportunities in Malaysia
and we’re quite optimistic that the local team will be able to grow the
company,” Mr. Bengzon said.
ALI acquired last April through MCT a four-hectare property in Kuala
Lumpur’s Klang Valley for P2 billion. It will be transformed into a
mixed use development, with 90% allotted for both horizontal and
vertical residential projects. The remaining 10% will be developed into
leasing spaces.
This will be MCT’s fourth project in Klang Valley, as it is also constructing Cybersouth, Cyberjaya, and One City in the area.
ALI generated a net income attributable to the parent by 18% to P13.5
billion in the first six months of 2018, as revenues likewise grew by
18% to P80.4 billion.
The company aims to hit a net income of P40 billion by 2020, or its
so-called 2020 vision, with P20 billion from the residential segment and
P20 billion from the leasing business. ALI would have to post a
compounded annual growth rate of 17% in the next two years in order to
achieve its goal.
ALI committed to spend P110.8 billion in capital expenditures this
year as part of its 2020 vision, and also to take advantage of the
booming residential market in the country. — Arra B. Francia
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