Ayala Land Inc., the second-biggest property developer, said it plans to spend between P85 billion and P90 billion next year, heavily investing across all business lines.
Ayala Land chief finance officer Jaime Ysmael said the company’s spending plan would be consistent with its positive outlook on the domestic retail market.
Ayala Land invested P60 billion in capital expenditures in the first nine months of the year, but said full-year capital spending would likely be below the original target of P100 billion.
Ayala Land president and chief executive Bernard Vincent Dy also expects the domestic real estate market to remain robust based on current economic indicators.
“If you look at various indicators it reman supportive of our various business lines,” Dy said.
“The GDP [gross domestic product] continuous to be quite healthy and [migrant workers’] remittances, although there has been a slow down, continue to grow. Business process outsourcing is still growing, tourism continues to be strong interest rates remain at historic lows. Overall, those indicators bode well for our different business lines,” he added.
Ayala Land’s net income in the first nine months of the year increased 19 percent to P12.8 billion from P10.79 billion year-on-year, as the company accelerated growth through acquisitions and new project launches.
Consolidated revenues in the nine-month period reached P75.1 billion, up 10 percent from P68.3 billion posted in the same period a year ago.
Ayala Land in the first the first three quarters of the year launched three estates, namely Cloverleaf in Quezon City, Capitol Central in Bacolod City, and the 700-hectare Vermosa in Cavite province.
Property developer Ayala Land Inc. said Wednesday it will invest P70 billion to develop Vermosa, a 700-hectare master planned integrated community in the cities of Imus and Dasmariñas in Cavite province.
The huge Cavite property, which the company acquired from an unlisted property firm three years ago, would be its fourth biggest estate development after Nuvali in Alabang, Alviera in Pampanga and Makati central business district.
Vermosa is a mixed-use project that will be developed over the next 12 to 15 years that will include a 124-hectare central business district housing various office and commercial developments, hotels and entertainment complex.
It will also offer institutional developments, such as schools and residential projects to be built by Ayala’s three residential units including Avida, Alveo and Ayala Land Premier.
Ayala Land in August won the government’s contract to build and operate the Integrated Transport System South Terminal project adjacent to its fast-rising residential and business district, Arca South.
The 35-year concession agreement for the infrastructure project includes the operation of commercial leasing facilities within the 5.57-hectare property.
It recently agreed to subscribe to 2.5 million common shares, equivalent to a 51.6-percent interest, in Prime Orion Philippines Inc., upon completing due diligence. POPI operates the highly commercial Tutuban complex in Manila.