ACR, Ayala to invest P20 billion to develop Davao City property
ALSONS Consolidated Resources, Inc. ( ACR) has placed at P20 billion the initial investment in a Davao City property it is jointly developing with the Ayala group that is expected to break ground this year, company officials said.
“The commitment of the partners is P20 billion in investment for the infrastructure, the amenities, plus the products,” ACR Chairman and President Tomas I. Alcantara told reporters.
The project, named Azuela Cove, is a 27-hectare development in Lanang, Davao City.
On its website, Ayala Land, Inc. said Azuela Cove is set to become the city’s “prime waterside business and residential district.”
Mr. Alcantara said Azuela Cove is a 60%-40% partnership between his group and the Ayalaled property giant.
“[ The] products, that is the one that we will sell. [The] infrastructure are the come-ons. The amenities [include] the tents, the commercial centers,” he said.
The property, Mr. Alcantara noted, used to be the location of ACR’s plywood plant.
“Before, it [plywood plant] was in the outskirts of the city. Now, it is in middle of the city already,” he said.
Mr. Alcantara declined to give an estimate on the expected revenues from the project, but noted Azuela Cove’s first residential building alone is valued at P195,000 per square meters, which he said translates to about a gross selling price of P30 million per unit. The building has 70 units, he added.
In a presentation before stockholders on Thursday, ACR said the first residential tower at Azuela Cove has been sold out with total sales of P2.5 billion.
The company plans to launch Tower 2 in the fourth quarter.
Azuela Cove will have two Ayala Premier and three Alveo developments — ALI’s the highend residential brands.
Robert F. Yenko, ACR chief financial officer, said the company had allocated P9 billion for capital expenditures this year, slightly higher than last year’s P8.8 billion. He said Azuela Cove is envisioned to be a “somewhat smaller version of BGC ( Bonifacio Global City).”
ACR currently operates four power facilities in Mindanao. The plants generate a combined capacity of 363-megawatts (MW) and serves more than 8 million people in 13 cities and eight provinces, including urban centers in Davao City, Cagayan de Oro, General Santos, Iligan and Zamboanga City.
The listed holding firm targets to have a total capacity of 588 MW by 2021, which is equivalent to 25% of Mindanao’s projected peak power demand by that year.
A number of ACR’s power plant projects are currently at different stages of development. —