AYALA LAND, Inc. (ALI) is spending an additional P10 billion for the development of Alviera, a mixed-use estate in Porac, Pampanga.
The listed property giant said it has raised its investment in Alviera, a partnership with Leonio Land Holdings, Inc., to P100 billion after it expanded the project area to 1,800 hectares from the original 1,100 hectares.
This comes less than a year after ALI ramped up its spending for Alviera to P90 billion from the original P75 billion in 2014.
“Given the growth in the economy and certain areas that we want to focus on, we have expanded Alviera to 1,800 hectares, a significant increase of 700 hectares… One of the focus areas that we will be looking at would be leisure and tourism component,” Alviera General Manager John R. Estacio told reporters in a press briefing in Makati City on Tuesday.
He noted the bulk or 60% of the expansion area will be allocated for leisure components, adding ALI is in talks with international locators who can add value to Alviera. For this portion of the development, ALI will only build the necessary infrastructure, while the international partner will be in charge of developing their own project.
“This is to be able to attract international leisure locators, those who can add value. They will be the ones to develop. Lease or buy, both options will be (considered),” Mr. Estacio said.
The Alviera executive said the company targets to have at least three international operators inside the estate.
ALI also recently signed an agreement with De La Salle Philippines to develop a 23-hectare La Salle Botanical Gardens within the estate.
“The project draws inspiration from internationally renowned gardens such as the Jardin botanique de Lyon in France and the Kew Royal Botanic Gardens in London,” the company said in a statement.
At the same time, ALI has also allotted a portion of the additional capital for the 64-hectare Alviera Industrial Park.
The first phase of the industrial component, which covers 20 industrial lots for Philippine Economic Zone Authority (PEZA) locators, is already 95% sold. Tenants include food, logistics, and warehousing firms.
Meanwhile, the second phase, which spans 32 hectares with a total of 22 lots, will cater to non-PEZA locators. Each lot has an average cut of 10,000 sq.m., priced at P5,500 per sq.m. Alviera looks to sell out the industrial lots in the next two years.
“Interest in industrial is really up. So we are really capitalizing on the interest for this one… This would be a good starter of economic activity,” Mr. Estacio said, noting that phase 1 of the industrial park could generate around 5,000 jobs.
Since 2014, Alviera has been developing residential projects under the Ayala brand, such as Alveo and Avida. Around 74% of the first phase of the residential projects have been sold, which the company said has already appreciated in value by 20%.
Alviera Country Club, which started construction in 2014, will be opened by the fourth quarter of 2018. Mr. Estacio likened the country club to Manila Polo Club, with a limited membership of only 3,000 members.
Ayala Land Premier, ALI’s luxury brand, will also be launching a residential subdivision in the estate in the coming years. Also, a seven-hectare commercial hub called Alviera East Commercial will also be developed in the next five years.
Alviera is one of 23 estates being developed by the Ayala group spread out across the country.
For the first half of 2017, ALI’s net income climbed 18% to P9.7 billion, following an 18% increase in revenues to P64.5 billion.
Shares in ALI were unchanged at P43.30 apiece at the Philippine Stock Exchange on Tuesday.