Real estate giant Ayala Land Inc. (ALI), through its units Amaia Land Corp. and  Avida Land Corp., will start developing some of the properties of Gatchalian-led Philippine Estate Corp. (Philestate) this year.

In a disclosure to the Philippine Stock Exchange, Philestate updated its agreement with Amaia for the development of its real estate property in Cavite province, as well as its agreement with Avida for the development of its properties in Valenzuela in Metro Manila.

“Both Amaia and Avida were chosen because these developers share the same development vision for the planned community, because they are well capable of carrying out the townshop developments,” Philestate said.

The Gatchalian-led firm further said that the Cavite lots will be developed by Amaia into a horizontal residential development, while the Valenzuela project will be planned primarily for residential development as well.

“These projects will be started in 2013,” Philestate said.

The firm also said that the proceeds from the projects will be good cash inflow for use by the company for its operations, and the venture with experienced developer partners will give them the exposure in new projects areas and methodologies.

Avida Land, the affordable brand unit of ALI, earlier said that they are looking to developing a medium-rise project in Valenzuela after it inked a deal with Philestate.

Antonino Aquino, president of ALI, on the other hand, earlier told reporters that Avida is looking to initially develop a medium-rise development within the area, but they are also planning to make it a mixed-use development in the latter part of the transaction.

“The memorandum of agreement is something we got into [with Philestate] some time last April, so this is just really an implementation of steps of that original agreement that we had previously entered into,” he said.

“We are starting off with 2.3  hectares out of the 17 hectares that has been the subject of agreement,” Aquino added.

He said that the timeframe for the project is 10 years.

“We always look at the total standpoint of how it is masterplanned but whenever we do any execution  steps, we do it one parcel at a time and that is a parcelized implementation,” Aquino said.