AYALA LAND, Inc., the property arm of the Ayala Group of Companies, yesterday said it would put up a mixed-use project in Davao City through a joint-venture agreement with three local firms.
In a disclosure, Senior Vice-President and Chief Finance Officer Jaime E. Ysmael told the exchange it entered into a joint-venture agreement with Anflo Management & Investment Corp., Pioneer Trading & Supply Co., Inc., and Davao Motor Sales Co. to develop a nine-hectare land located at Bajada, Davao City.
Mr. Ysmael said the project would consist of 40,000 square meters (sqm) of retail development and 20,000 sqm of business process outsourcing (BPO) development.
Initial estimated project cost, he said, was about P2.31 billion, funded by debt and equity. Ayala Land’s equity in the project is 67%.
Jose Vistan, research head at AB Capital Securities, said Ayala Land’s move to put up such project in Davao is very feasible because of property value, adding that it could generate employment in the locality.
“I guess it’s cheaper to do a project like that outside Manila considering the lower property value [in the provinces], and also Manila is already saturated,” he said.
In an earlier interview, the company said it was looking for partners and properties to develop information technology (IT) parks in Bacolod, Cagayan de Oro and Davao cities.
It said that it was also planning to create special purpose vehicles (SPV) to finance these projects.
Early this month, Ayala Land opened eBloc, a 12-storey office building catering to the BPO companies, at its Asiatown IT Park in Lahug.
Asian I-Office Properties, Inc., the SPV created by Ayala Land’s affiliate Cebu Property Ventures and Development Corp., funded the P900-million eBloc.
For the first three quarters, Ayala Land, Inc. reported a 15% growth in its net income to P3.1 billion as a result of an upbeat demand across all segments.
Residential unit bookings for its high-end and middle-market projects rose by 18% and 42%, respectively, while its affordable housing segment posted a 134% increase in bookings.
Revenues from its shopping center operations likewise grew 11% due to higher occupancy and rental rates, while revenues