AYALA Land Inc. (ALI) has revealed its largest project in Central Luzon where it will invest P75 billion to develop a 1,100-hectare master-planned estate in Porac, Pampanga.
ALI officials said in a briefing on Tuesday that the Alviera , as they call the development, will be a joint venture project with property firm Leonio Land Inc. The partners signed an agreement in December 2013 after three years of planning.
“The funds (for the project) will be sourced from internal cash flows as we actually sell the product and potential loans from financial institutions,” ALI President Bernard Vincent Dy said.
Anna Ma. Margarita Dy, vice president and head of ALI Strategic Landbank Management Group, said in the same briefing that upon completion, Alviera will be home to 65,000 residents, 20,000 office and industrial workers, and 20,000 students.
Alviera’s Phase 1, which will take three years to complete, will use 207 hectares out
of the 1,100 hectares for the whole estate. Phase 1 will cost P8 billion.
ALI said it expects P15 billion in sales from the completion of Phase 1, of which 55 percent of revenues will go to ALI, and 45 percent to Leonio Land.
Phase 1 consists of 150 hectares or more than 1,500 residential units, 31 hectares for an industrial park approved by the Philippine Economic Zone Authority, 6 hectares for an exclusive Alviera Country Club, and the rest for two universities, namely Holy Angel University and Miriam College.
In terms of its residential component, Alviera will have three Ayala brands for Phase 1: Forbes Park subdivision by Ayala Land Premier, as well as Alveo and Avida Land.
For its 31-hectare industrial park, Bobby Dy said an initial 16 industrial lots at one to 1.5 hectares each will be for sale. Local manufacturing firms engaged in exports have already expressed interest to locate in the area, but the company said the industrial area will also be open to Korean and Taiwanese locators.
John Estacio, general manager of Alviera development, said that the 6-hectare exclusive Alviera Country Club will start selling a total of 1,000 shares in October for its first tranche, priced at P500,000 per share. The country club will be operational in 2016.
Dy said that the 1,100 hectares to be developed consisted of two parcels of land bought from the Manila Bank Group and the Dayrit family.
“As far as the development is concerned, there were really two properties from which this project started from. Both parcels (of land) have exemption orders from the Department of Agrarian Reform, which was upheld with finality, also by the DAR. Before we embarked on this project, we took on due diligence to really understand whether we can develop the property,” she said.
Besides the 1,100-hectare Porac, Pampanga development, ALI’s other large-scale master-planned community projects include the 74-hectare Arca South (formerly Food Terminal Inc.) in Taguig, and the expansion of the Makati central business district.
ALI is on track in its 20 percent growth target in net profits and revenues for 2014. The property firm recorded P7.1-billion net income in the first half, 25 percent higher than the P5.6 billion last year.
ALI is involved in property development, commercial leasing, hotels and resorts, construction and property management.