“As part of its investment program ALI targets to triple its real estate portolio by 2020.”
MANILA, Philippines – Property giant Ayala Land Inc. (ALI) aims to triple its real estate portfolio by 2020 as part of an investment program to boost its net income to P40 billion in the next six years.
In a briefing with analysts, ALI unveiled its six-year business plan which will see its inventory of shopping malls , office buildings and hotel rooms grow threefold by 2020 from its 2013 capacity.
This translates to 3.6 million square meters of shopping space, 1.8 million sqm of office space, as well as 6,000 hotel and resort keys.
ALI, which developed the Makati business district, has earmarked a record high P100.3 billion for capital spending this year to bankroll its aggressive expansion program aimed at growing its net income by an average of 20 percent annually.
Of the total programmed budget, P37.4 billion will go to the construction of residential projects, P31.5 billion for land acquisition, P14.7 billion for new mall developments, P5 billion for new office buildings, P2.8 billion for hotels, and P8.9 billion for others.
Based on the current completion schedule, ALI will grow its office space by an average of 16.4 percent annually from 2014 to 2019. Shopping space is projected to expand 17.4 percent annually from 2014 to 2017.
Hotel and resort keys are expected to grow at an annual average of 14.4 percent from 2014 to 2019. This includes 497,000 sqm of shopping center space, 693,000 sqm of office space, and 2,066 hotel and resorts keys.
ALI said most of the sites for these expansion are already in place, making these targets more feasible.
To support its robust growth trajectory, ALI will continue to launch projects aggressively as well as capitalize on its 8,639 hectares of landbank across the country.
Last year, ALI reported a net income of P14.8 billion or 26 percent higher than 2013 on the back of hefty revenues from its residential offerings and shopping centers.
ALI has five residential brands — Ayala Land Premier which caters to the high end segment of the property market, Alveo (upper middle class), Avida (middle-income), Amaia (low-cost) and Bella Vita (socialized housing).
It is the property firm of conglomerate Ayala Corp., which also has interests in utilities (Manila Water Co. Inc.), telecommunications (Globe Telecom Inc.), semiconductors (Integrated Microelectronics Inc.), banking (Bank of the Philippine Islands), and education (LiveIt Investments), among others.