ABOITIZ Land Inc. and Ayala Land Inc. are going ahead with their maiden property joint venture in Cebu with an initial investment of P2 billion.
Andoni Aboitiz, Aboitiz Land president and chief executive officer, told reporters that come June, the two real estate companies will be breaking ground on their joint new city center project in Cebu.
The project will be undertaken in three phases, with the initial phase costing P2 billion, Aboitiz said.
“We will launch the estate in June, meaning the whole project. The residential [phase]will be developed first, probably toward the end of the year,” Aboitiz said.
He noted that the 15-hectare Cebu City center will have residential, retail and office centers.
Aboitiz added that a big portion of the estate would be reserved for mall construction, which will house Landmark as its main tenant.
The project was earlier eyed for launching last year but was pushed back to a later period to thresh out issues encountered during the planning stages.
“We just encountered the normal planning delays,” Aboitiz said, adding that they spent a lot of time in tweaking the plans.
In 2014, the property unit of the Aboitiz family signed a 50-50 joint venture deal with the property arm of the Ayala conglomerate to embark on the development of a 15-hectare city center in Brgy. Subangdaku, Mandaue City in Metro Cebu.
The deal is expected to bring together Aboitiz Land’s real estate experience in Cebu and ALI’s expertise in developing master-planned communities.