Capital expenditures for 2018

Property giant Ayala Land, Inc. (ALI) is allotting a record R110.8 billion for capital expenditures (capex) this year, 21.6 percent more than the R91.1 billion spent last year as it continues to expand its various businesses. In an interview, ALI President Bernard Vincent O. Dy said economic fundamentals continue to be supportive of the real estate market as household consumption continues to be good, mortgage rates continue to be low, the business process outsourcing industry (BPO) also continues to grow, and tourism remains to be strong. “Coming to 2018, we are feeling good of the prospects. Back in 2014 we launched a 2020 plan to reach R40 billion by 2020 and we continue to be on track,” said Dy. He noted that, “between 2018 to 2020, to be able to get to R40 billion we need to grow by 17 percent a year. We feel this is achievable, primarily because, as I call this, our country continues to grow, macro-fundamentals continue to be supportive of growth.” “Our capex is significantly higher year on year, so this is gonna be an all time high. And that is an indication of the opportunities that we see in the market,” Dy added. ALI Chief Finance Officer Augusto Bengzon said residential projects will get the biggest capex allocation of 43 percent; leasing properties such as malls, offices, and resorts will get 31 percent; 12 percent has been earmarked for land acquisitions; while the balance will be for estate developments and other investments. Bengzon said 2018 will be a “landmark” year for the company as it plans to launch R125 billion worth of projects to drive growth further. It will launch R100 billion worth of residential projects and R25 billion in leasing spaces. (JAL)