ALI earmarks P100B for high-end blitz
Of this year’s capex, 34 percent would be spent on residential projects; 24 percent on estate development; 19 percent on land acquisition, 10 percent on malls, eight percent on offices, and five percent on hotels and resorts
Ayala Land Inc., or ALI, has earmarked P100 billion in capital expenditure this year, representing a 16 percent increase from last year’s P86.2 billion spending to bankroll its expansion buoyed by a promising property sector.
ALI chief finance officer Augusto Bengzon said 34 percent of this year’s capex would be spent on residential projects; 24 percent for estate development; 19 percent for land acquisition; 10 percent for malls; eight percent for offices, and five percent for hotels and resorts.
This year alone, ALI is set to launch P115 billion worth of property developments — the majority or P100 billion of which are residential projects, while the remaining chunk of P15 billion are commercial and industrial undertakings.
Premium segment
Significantly, the company’s residential projects primarily aim to meet the needs of the premium segment, with 80 percent of the projects targeting this market. The remaining 20 percent of the projects are dedicated to serving the company’s core market.
Furthermore, the portfolio of residential projects consists of 52 percent horizontal development and 48 percent vertical residential projects.
The residential projects will be spread nationwide: 44 percent will be in Metro Manila, 38 percent in South Luzon, 7 percent in Central Luzon, and 11 percent in Visayas and Mindanao.
ALI president and CEO Anna Ma. Margarita Dy said the company plans to maximize the growing high-end property market by launching more projects designed for their needs.
Post-pandemic, ALI president and CEO Anna Ma. Margarita Dy said the company observed an increase in opportunities in the high-end market.
“We are launching more and more every year. It’s just that this mix of launches favoring the premium is more reflective of market opportunity. It’s reflective of how different segments of the market have been affected by the pandemic and the increase in interest rates,” Dy said.
“It’s usually the middle market that I guess is more vulnerable to these changes and the premium segment is a little bit more resilient. That changes the behavior. And we’re just making sure that we are addressing the market that we feel is the most robust,” she added.
Middle-income segment
Despite the current focus, Dy emphasized that ALI is prepared to alter its strategy if the middle-income segment shows signs of recovery, indicating a willingness to adapt to market dynamics.
Last year, ALI saw a double-digit growth in its bottom line on the back of strong demand for property and consumer activity.
The company recorded a net income of P24.5 billion in 2023, representing a 32 percent year-on-year increase in profits.
Meanwhile, its revenues reached P148.9 billion, up by 1 percent from the previous year.
ALI launched four new estates in 2023: The 55-hectare Batangas Technopark at Padre Garcia, the 32-hectare Centrala at Angeles City, Pampanga, 800-hectare Southmont at Silang, Cavite, and the 62-hectare Arillo at Nasugbu, Batangas.