PROPERTY developer Ayala Land Inc. (ALI) has raised its planned spending for its 1,100-hectare integrated mixed use estate Alviera in Porac, Pampanga to P90 billion from the P75 billion announced last year, after it made some adjustments to the project’s masterplan.
“The P75 billion [announced]before was an initial estimate,” John Estacio, general manager of Alviera development, told a press briefing on Tuesday.
He said some fine-tuning was made on the masterplan for various reasons and due to the actual site condition. “We need to adopt some other things that will make the estate better,” he explained.
Estacio said they also added a 15-megavolt ampere (MVA) or 15 megawatt (MW) power substation that will initially supply the residential (5 MVA) and industrial components (10 MVA) for the next five years.
In September last year, the company launched Alviera, a 25- to 30-year integrated mixed-use urban estate development in Porac, Pampanga. It will consist mainly of horizontal residential components, a retail and an industrial block, a country club, two universities, a QualiMed hospital and other amenities, among others.
The project is a 55-45 joint venture deal between ALI and Leonio Land Inc., the latter being the main owner of the land. A company was formed out of the joint venture, called Nuevo Centro Inc., which is in charge of the development of the whole of Alviera.
Earlier, company officials said Alviera is projected to house 65,000 residents as well as 20,000 workers in its offices and industrial zone and 20,000 students upon its completion.
Also due to the fine-tuning of the master plan, Estacio said ALI has slightly decreased its Phase 1 investment—the first three years from 2015 to 2017—to P7.3 billion from the P8 billion originally in line with the timeline of launched and completed developments within the three-year window.
Phase 1 consists of 150 hectares, or more than 1,500 units of residential house-and-lot units under the Ayala Land Premier, Alveo and Avida brands; a 31-hectare industrial park accredited by the Philippine Economic Zone Authority (PEZA); a six-hectare exclusive Alviera Country Club; and two universities, namely Holy Angel University and Miriam College.
For the industrial block, an initial 116 industrial lots ranging in size from one to 1.5 hectares each will be for sale, of which three locators have already confirmed from the food manufacturing, plastics manufacturing, and motorcycle parts and electronics segments.
Estacio said Alviera’s industrial component will mainly “host industries that are non-polluting light industries and the ancillaries” of the main locators in Clark and Subic.
ALI earlier said it expects P15 billion in sales from the completion of the Phase 1 development.
Phase 2, on the other hand, is still in the planning stage, Estacio said, adding that it will comprise of continued developments of residential units, commercial lots and offices, school operations, hotels, as well as the opening of the Alviera Country Club.
The industrial chunk may also expand from the current 16 lots offered, given the strong demand of locators.
Aside from the 1,100-hectare Porac development, ALI is in 45 growth centers across the country consisting of other large-scale master-planned community projects such as the 74-hectare Arca South (formerly Food Terminal Inc.) in Taguig, the 46-hectare Vertis North in Quezon City and the expansion of the Makati central business district.
For this year, the company has programmed a capital spending of P100 billion, to be funded from the P16-billion share placement conducted in February, internally generated cash, and various debt raising initiatives worth P15 billion to P20 billion.
The company reported a net income of P4.1 billion in the first quarter, up 19 percent from the P3.5 billion recorded in the same period last year. Consolidated revenues increased 10 percent to P25.1 billion from P22.7 billion on the back of robust property development, commercial leasing operations and increased number of integrated mixed-use townships nationwide.
He said the firm is “on track” with its 2020-40 plan, which involves growing ALI’s profits by 20 percent yearly to P40 billion by 2020 from P11.7 billion in 2013.
ALI is involved in property development, commercial leasing, hotels and resorts, construction and property management.