Ayala Land to launch new estates this year

Ayala Land Inc. on Wednesday said it will launch four new estates to expand its portfolio as the company is confident that the real estate sector will bounce back this year.

Bernard Vincent O. Dy, Ayala Land president, said the Philippine economy’s prospects will support the company’s growth not only for this year, but also for the foreseeable future.

He did not name the four new estates.

“There are several positive factors. I think that bodes well for the expansion of our business line. In this year, GDP is expected to grow between 5-6 percent. Consumption continues to be strong, OFW [overseas Filipino worker] remittances continues to increase year on year. BPO [business process outsourcing] take up and take up of office space continue to improve,” Dy said during the company’s stockholders meeting Wednesday.  “Moreover, we believe that interest rates have peaked and inflation is starting to decline from the high levels that we saw last year. Given these favorable conditions, we anticipate renewed growth across all our business lines this year.”

Last year, Ayala Land launched two new estates: Areza in Lipa, Batangas, and Crossroads in Plaridel Bulacan.

Jaime Augusto Zobel de Ayala, Ayala Land chairman, said the company is looking to spend P15.2 billion for the initial development of the two estates over the next few years.

“We believe that will spur economic activity in these emerging localities maximize synergies among our product lines, and enable us to deliver value to these local economies and their stakeholders,” he said.

“As the country’s growth continues to gain momentum, we will accelerate the rollout of our large-scale mixed use and sustainable estates across the country.”

The 92-hectare Areza is Ayala Land’s first estate in the province of Batangas and is eyed to be Lipa’s new downtown. It comprises commercial, retail and institutional establishments geared to harness the province’s strength in agriculture, manufacturing and tourism.

The 83-hectare Crossroads, meanwhile, will be a masterplanned mixed-use estate, featuring residential and commercial components in the emerging enterprise zone in the eastern corridor of Manila.

In the company’s quarterly briefing in February, company officials said they are planning to launch an industrial estate in Padre Burgos, Batangas.

Augusto Cesar D. Bengzon, the company’s CFO, said the company will launch some P110 billion worth of inventory this year from P90 billion last year.

“Inflation and interest rate increases over the past few years have impacted demand particularly in property development in our residential business. We believe that interest rates have peaked and inflation is starting to decline from the high levels that we saw last year,” Bengzon said.

“Given these favorable conditions, we anticipate renewed growth across all our business lines this year (mostly) in the residential sector.”