STA. ROSA, Laguna: Ayala Land Inc., the property developer of the Ayala Group, is setting aside P12.5 billion for capital expenditure in the next five years to expand its leasing space to 125,000 square meters by 2020 from the current 85,000 sqms.
Anna Ma. Margarita Dy, vice president and head of ALI Strategic Landbank Management Group, said in a press briefing on Wednesday that the company is now utilizing a P12.5-billion budget towards 2020 to finance the developments at Nuvali apart from the P44 billion so far spent for the development.
“Right now, there are 30,000 sqms of existing GLA for office and 55,000 sqms for retail. In the next five years, we are planning to build around 30,000 sqms of office space and another 10,000 sqms of retail space. Our retail and office establishments are on a par with the ones in the major cities in Manila,” Dy noted.
“Things are happening much faster than we thought. [The P12.5 billion] is part of the budget, it’s been brought forward because the market is growing faster than we originally thought,” she added.
Nuvali General Manager John Estacio said the 125,000 sqms of gross leasable area at Nuvali by 2020 will comprise of 60,000 sqms of office space and 65,000 sqms of retail space.
Estacio said that in the next five years, ALI is set to build two other office towers with 15,000 sqms of leasable space each, as well as the 5,000-sqm Merkado supermarket and two town centers of 2,500 sqms each. Merkado and the town centers are will be constructed starting next year and will be opened to the public by 2017.
To date, Estacio said 78 percent of Nuvali is already developed, while the rest of the 2,290-hectare development is “good for another 20 years.”
Amid the strong demand at Nuvali, Dy noted that the company is still looking to buy land within the area, noting that due to the fast take up land values have already appreciated to P20,000 per sqm from the P9,000 in 2007.
In the first half of 2015, Ayala Land posted a first half net income of P8.4 billion, up 19 percent from a year earlier.
This year, the company is setting aside a total of P100-billion capex to be sourced from the P16-billion share placement in February, internally-generated cash, and P15 billion to P20 billion from debt.
The firm is “on track” with its 2020-40 plan, which involves growing ALI’s yearly profits by 20 percent to P40 billion by 2020 from P11.7 billion in 2013.