ALI ramps up 2021 capex

Property giant Ayala Land Inc. (ALI) will increase its capital expenditures (capex) by over a third to support the launch of P100 billion worth of new projects this year, optimistic about market recovery amid the pandemic.

In a virtual media briefing, ALI president and chief executive officer Bobby Dy said the company plans to spend P88 billion in 2021 from P63.7 billion the previous year.

“For 2021, our goal is to start our V-shape recovery. We think it will be a journey that will take two to three years to bring ALI back to its performance in 2019 as well as to set the stage for growth levels that we have experienced in the past,” he said.

Dy said the economy has gradually opened and indicators are starting to improve that will be further boosted once the coronavirus vaccine is available.

Residential projects to grow

Bulk or 44 percent of this year’s planned capex will be used to expand residential developments, 26 percent for land acquisition, 13 percent for estate development, six percent for malls, five percent for offices, three percent for hotels and resorts, and another three percent for other projects, he added.

On launches, Dy said ALI will introduce to the market projects across all brands with focus on Avida and Alveo.

“In terms of location, close to half of these (projects) will be in the Metro Manila area where we are still seeing most of the demand to come from,” he said.

By type of projects, Dy said 62 percent of these launches comprise vertical or condominiums, 37 percent are horizontal or subdivisions, and about 1 percent for leisure.