Ayala Land in talks with banks for P11-billion loan
AYALA LAND, Inc., (ALI) one of the country’s biggest property developers, said yesterday it was talking to 10 banks about arranging lending of up to P11 billion ($249 million) to partly finance capital expenditure this year.
BDO Unibank, Inc.; Rizal Commercial Banking Corp.; Security Bank; HSBC; and Mizuho are among the banks Ayala Land was in talks with, Ayala Land Treasurer Augusto Cesar D. Bengzon told Reuters, speaking on the sidelines of an event in the capital.
He said Ayala Land, which has set out a record P100 billion capital expenditure budget this year, was looking at loans with maturity of between five and seven years.
Also, the property conglomerate said on Wednesday that it is keen on joining the Swiss Chal- lenge for a contract to develop the 33.1-hectare Bonifacio South Pointe property in Taguig City, as the property giant seeks to beef up its land bank in the country’s major central business districts.
The Supreme Court, in a 13page resolution dated March 18, affirmed with finality its August 2014 ruling ordering the Bases Conversion and Development Authority (BCDA) to proceed with the process of entertaining SM Land, Inc.’s ( SMLI) unsolicited proposal, the termination of which was challenged by the property company.
The decision finalized as permanent the Jan. 9, 2013 stay order blocking the BCDA’s plan to discard the process of subjecting the proposal to Swiss challenge in favor of public bidding.
“In general, we look at any parcels of significant size,” ALI President Bernard Vincent O. Dy told reporters when asked if it will try to match SM’s offer for the Bonifacio South property on the sidelines of the listing of the company’s P7- billion fixed rate bonds on the Philippine Dealing and Exchange Corp.
Likewise, ALI secured a long- term lease for a property at the Aseana Business Park in Paranaque City, construction of which will start “hopefully by next year or late this year,” he said.
“We won’t know the exact budget until we finish the plan. Obviously, 9 hectares, it will be a very sizable mixed-use project,” Mr. Dy said.
The Ayala group secured a 45-year lease for the 9.2-hectare property from D.M. Wenceslao & Associates, Inc., owner of the 204-hectare Aseana Business Park complex, according to a statement issued by the Parañaque City government on April 20.
ALI gained a foothold in the country’s premier gaming district when it was tapped to be the leasing and market agent for more than 5,000 square meters of retail space at Bloomberry Resorts Corp.’s Solaire Resort and Casino.
The property giant intends to build Parañaque’s “biggest mall,” supplanting SM Mall of Asia with a gross floor area of 407,000 square meters. Aside from the mall, ALI will build an office and a 12- storey hotel with at least 325 rooms.—