ALI allots P60 B for Makati rebranding
Ayala Land Inc. (ALI) is spending P60 billion in the next five years for the redevelopment and rebranding of Makati City into a masterplanned and integrated city that will make it a premier regional center in Southeast Asia.
ALI president Antonino Aquino said this will be the company’s biggest investment to date and will involve developing six distinct and complementary districts. These are Ayala Center (cosmopolitan district), Makati North (young and creative), Makati central business district (busi- ness), Ayala Triangle Gardens (urban oasis), Makati South (transport hub), and Sta. Ana ( Makati’s entertainment district) covering a total of 70 hectares.
Aquino explained that with the renewed interest in the Philippines especially among foreign investors, “we want to make sure that we provide them with all the facilities that they will require.”
“This is actually the first PublicPrivate Partnership (PPP),” he added. ALI is aiming to strengthen Makati’s status as the country’s unrivalled capital not just for business, but also for lifestyle, entertainment, and culture.
In addition, ALI is spending about P37 billion for Bonifacio Global City and P12.5 billion for Nuvali in Laguna, both in the next five years.
Bulk of the P60- billion budget will be funded by ALI, partly from the proceeds of a P15-billion bond offering this April, while about five percent will come from MACEA or the Makati Commercial Estate Association.
Also envisioned to support Makati’s redevelopment is the P1-billion bus rapid transit system (BRT) that will link MRT 3, PNR Buendia station and LRT 1. The main proponents of this project are ALI and MACEA, which submitted an unsolicited proposal to develop it to the Department of Transportation and Communications (DOTC).
ALI officials revealed that the DOTC is now ready to renew discussions over the project, which may involve talks about rationalizing routes of public transport. “But they have to understand that this will improve the lives of commuters who can get to their destination faster,” Aquino emphasized.
About P20 billion of the budget will be spent for the development of the Sta.ana district, the former site of the horseracing track.
ALI vice president for strategic landbank management Anna Bautista- Dy said they commissioned an independent agency to do an online study which showed that 65.3 percent of the respondents still associate Makati with leadership and vision.
As part of the project, ALI is completing Phase I of Ayala Center redevelopment which will result in 54,000 square meters of retail space.
Soon to rise is the country’s first ever six-star hotel, Fairmont Hotels and Raffles Residences.
Dy said Phase 2 will involve “pedestrianizing” Ayala Center. “After all, the city of the future is not about cars,” she said.
As for the Makati CBD, Dy revealed that elevated walkways are being constructed through MACEA. The BRT is a main component of the CBD’S redevelopment.
Since this will involve developing almost from zero, the development of the Sta. Ana district will take up a third of the cost. Covering 21 hectares, it is envisioned to have 1.3 million sqm of built- up space which is the size of all 18 Ayala malls nationwide combined.
Sta.ana will also be the site of a performing arts theater. ALI is currently in the masterplanning stage for this project.
Makati remains to be the Ayala group’s crown jewel, with a third of ALI’S income derived from the city. But Aquino stressed that Bonifacio Global City, whose development is being managed by ALI, is still complementary to Makati.
Aside from Metro Manila, ALI is also looking at developments in Pampanga, Baguio, Subic, Cagayan de Oro , Davao, Iloilo, Bacolod and Cebu.
Aquino said they plan to launch about the same number of projects this year but 29 percent higher in value and 20 percent more in terms of number of units. “We remain well positioned to pursue our growth moving forward and achieving the goals we set,” he added.
Last year, ALI posted P7.1 billion in net income. Residential accounted for about 60 percent or P24 billion of total 2011 revenues. Of this, 18 percent or P4.4 billion were derived from Makati residential projects (ALP Park Terraces 1-3, P2.3 billion; Alveo’s Lerato, P1.4 billion; and Avida’s San Lorenzo, Makati West, P717 million).
ALI also has its hotel and resorts group. COO Al Legaspi said that aside from the Raffles and Fairmont, Holiday Inn and Suites will be built on top of the mall. “We are very bullish about the industry. Right now, the hotel occupancy rate in Makati is around 80 percent. But the newest hotels are about 20 years old,” he said. ALI’S hotel portfolio include Hotel Intercontinental in Makati and Cebu Marriott, among others.