14 Apr Ayala Land Inc Plans for Its “Vision 2020” Program: To Expand Mall and Hotel Operations Nationwide
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Supporting its assertive medium-term program called “Vision 2020″, Ayala Land Inc. has constructed plans to raise 6,000 hotel rooms and infringe the shopping mall footprint of 3-million square meter mark nationwide. The said plan seeks to increase annual business by about 20 percent a year starting from 2015 to 2020 that would possibly conclude an annual net profit exceeding P40 billion by year 2020. 50 percent of the profit will derive from development assets, could be from residential property development, and the balance from the leasing portfolio, which will also include the office property and shopping mall operations.
ALI Chair Fernando Zobel de Ayala said during the company’s stockholder’s meeting last April 12, Tuesday, “Our presence across the Philippines, with 18 established estates and a landbank of 8,948 hectares, enables us to take advantage of the growth of consumer spending, the steady remittance stream from overseas Filipino workers to the continuing robustness of business process outsourcing (BPO) and the thriving tourism sector.”
“We expect these strengths to remain as our anchors as we carry out plans to achieve a more balanced and sustainable company by 2020,” he added.
Aside of the expansion of hotel and shopping mall operations supporting the 2020 vision, the plan was said to build 1.8 million sqm of BPO office space by year 2020. This was according to ALI president Bernard Vincenrt Dy with about 715,000 sqm currently operational and another 700,000 sqm under construction.
Meanwhile, ALI senior vice president Jose Emmanuel Jalandoni said that for the BPOs, the group was still focusing on growing the portfolio in Bonifacio Global City and Makati which are the two crown jewels of ALI elsewhere in Metro Manila. Anyhow, the group has additionally launched new office property developments in cities like Davao which was now fully leased out, Iloilo and Cagayan de Oro.
Accounting 34 percent of total earnings as of end of 2015 are the new areas outside of traditional hubs, according to ALI chief finance officer Jaime Ysmael. A greater share in earnings contribution would be accounted from projects in new areas like Alviera in Pampanga, Vermosa in Cavite and Cloverleaf in Balintawak, Quezon City, as well as tourist estates in Sicogon Island and Lio in Palawan. And in order to achieve this vision 2020, Ysmael added that ALI would need to spend as much as P90 billion annually.
ALI had 2,324 hotel room keys as of end of 2015, opening a 152-room Seda Hotel at Atria Park District in Iloilo which added to its roster in Bonifacio Global City, Abreeza, Nuvali and Centrio in Cagayan de Oro alongside El Nido Resorts and internationally branded hotels.
To rise under homegrown Seda brand are more hotels at the site of the former Makati Intercon, City Gate Makati, in Makati Circuit, Vertis North and Bay Area while Seda BGC to expand providing 300 more rooms.
Retail hubs like Nuvali Solenad 3, Ayala Malls Legazpi (Albay), Ayala Malls Serin (Tagaytay), Shops at Atria (Iloilo), Circuit Lane (Circuit Makati), and a new phase of UP Town Center were newly opened by ALI, in the retail property business.
To sum it up, ALI completed half of the footprint targeted by 2020 last year with a total mall portfolio of 1.45 million sqm.
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