ALI’s Cloverleaf to cost P25B in 10 yrs

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PROPERTY developer Ayala Land Inc. (ALI) is set to build a P25-billion mixed-use master-planned township in Balintawak, Quezon City, to be called Cloverleaf, which it expects to complete in the next 10 years.

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“Our vision is to create a pocket urban development in this strategic area. Cloverleaf will give people access to refreshing retail, business, lifestyle and residential possibilities—elements that create an ideal urban lifestyle,” Anna Ma. Margarita Dy, vice president and head of ALI’s Strategic Landbank Management Group, said in a press briefing on Monday.

“We wanted to be in this area for a very long time due to three reasons. One, because the area has been the gateway to the north where trading businesses are established, adapting a bustling business community.

Second, there is a prosperous residential community of Filipino-Chinese in the area and we want to capitalize on that. And also, improved vehicular access is also present due to EDSA, LRT-1 and the ongoing Skyway, seen to be completed mid-2017,” Dy said.

“So by the time the Skyway is finished, the mall and the hospital near EDSA would already be accessible,” she added, noting that Cloverleaf is set to rise along EDSA and A. Bonifacio Avenue, in between Caloocan and Quezon City.

Dy was referring to the P26.5-billion Metro Manila Skyway Stage 3 connector road project of the San Miguel Group and Citra Metro Manila Tollways Corp. The connector road is a six-lane, 14.8-kilometer expressway from Buendia Avenue in Makati City to Balintawak — where Cloverleaf will be situated — connecting the South Luzon Expressway to the North Luzon Expressway. The road project is scheduled for completion by 2017.

Before coming up with a master plan for the development, the 11-hectare Balintawak property was the site of textile mill that has lain vacant since the 1980s. ALI acquired the property in 2013 from the sole land owner which it did not identify.

Two phases
Cloverleaf will consist of two phases: Phase 1will cost P15 billion and will be built over the next five years, and Phase 2 will cost P10 billion and will be constructed in the succeeding five years. Some 34 percent of the development will be for residential towers, 62 percent will be for retail and business developments, while the rest will be allocated for a hospital, a hotel and others.

Phase 1 will comprise eight buildings — five towers for the residential segment consisting of two Alveo towers with a total of 600 units and three Avida buildings offering about 2,000 units, two phases of QualiMed hospital, and a 40,000-square meter Ayala Malls commercial center.

For the residential segment, Alveo is set to launch one of its two towers by the third quarter this year. The Alveo and Avida buildings will offer a total of about 2,600 units, which are expected to be turned over to their buyers by 2019 and 2020, respectively.

David San Pedro, head of ALI’s corporate planning, international business and healthcare, said that Phase 1 of the QualiMed hospital will comprise a 10-level, 250-bed facility that is set to be completed in the fourth quarter of 2017. The first medical structure will cost P1.8 billion and will have a total area of 25,000 sq m.

Depending on the market take-up, San Pedro said the firm will see “if we can build Phase 2 [of QualiMed]within Cloverleaf’s first five-year period.”

QualiMed is a partnership between ALI and Mercado General Hospital Inc., in which ALI holds 36 percent via subsidiary WhiteKnight Holdings Inc.

Four-level mall
For the retail component, the 2-hectare Ayala Malls will have 60,195 sq m gross floor area and 40,000 sq m of gross leasable area. ALI will start construction of the four-level mall by the second quarter this year with completion seen by the fourth quarter of 2017. Total cost for the mall construction is P2.4 billion.

The company said Phase 2 will also include seven additional buildings oriented towards A. Bonifacio Avenue which will have retail, office, residential and hotel components.

Apart from the 11-hectare Cloverleaf, ALI is also set to launch another integrated residential, retail, office and hotels estate in Bacolod Capitol, also sometime this year.

ALI launched four township complexes last year — Alviera in Pampanga, Altaraza in Bulacan, Arca South in Taguig, and Atria Park District in Iloilo, amounting to more than 1,200 hectares of developable land.

For 2015, ALI plans to launch “P100 billion to P120 billion” worth of projects to keep pace with its annual growth target of 20 percent in line with the country’s solid economic performance.

For its offices portfolio, ALI will be launching about 300,000 square meters in gross leasing area (GLA), with 106,000 sq m set to be completed within the year. Office towers for 2015 will rise in Alabang Town Center, Cebu, two in Bonifacio Global City (BGC), and one at the UP Technohub.

In terms of mall developments, some 147,000 sq m GLA will be up for completion within the year out of the 197,000 sq m undergoing construction this year. These consist of seven malls in Nuvali in Sta. Rosa Laguna; BGC; UP; Ortigas; Tagaytay; Circuit, Makati; and Legazpi, Albay. Each mall will range in size between 15,000 sq m and 40,000 sq m.

For hotels, only the 153-room hotel in Iloilo is expected to be completed this year. ALI executives said a total of 2,000 hotel keys will be under construction until 2019.

ALI’s 2014 performance exceeded expectations as its net income went up 26 percent to P14.8 billion from P11.7 billion a year earlier, while revenue increased 17 percent to P95.2 billion.

The company is on track with its 2020 Vision, which involves growing ALI’s profits by 20 percent yearly to P40 billion by 2020 from P11.7 billion in 2013.

To fund its projects this year, ALI chief financial officer Jaime Ysmael earlier said the firm raised its capex to P100 billion, to be sourced from a P16-billion share placement last month, internally-generated cash, and some “P15 billion to P20 billion” from various debt raising initiatives.

ALI is involved in property development, commercial leasing, hotels and resorts, construction and property management of the Ayala Group.
Its parent Ayala Corp. also has other units including Manila Water Co. Inc., Globe Telecom Inc., Integrated Microelectronics Inc., BPI, and LiveIt Investments, among others.

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