LISTED property developer Ayala Land, Inc. (ALI) is targeting to raise P55 billion in fresh funds this year to settle debt and support its expansion.
“We have a very busy year ahead of us. This year, we intend to raise a total of P55 billion, P25 billion of which will go toward the refinancing of maturing obligations, and P30 billion will support our P95-billion capital expenditure (capex) program,” ALI Chief Finance Officer Augusto D. Bengzon said during a media briefing in Makati City on Thursday.
Mr. Bengzon said 60% of the planned P55-billion fundraising will be done through sustainability-linked financing, while 40% will be through bilateral credit facilities.
He added that roughly half of ALI’s sustainability-linked financing will be through a multilateral agency, while the other half will be via the capital market.
ALI earmarked P95 billion for capex this year as the real estate company targets launching P100 billion worth of projects.
Of the total, 37% will be for residential projects, 25% for estate development, 23% for leasing and hospitality assets, and 15% for land acquisitions and general corporate purposes.
ALI President and Chief Executive Officer Anna Ma. Margarita Bautista-Dy said in the same briefing that the property developer will be aggressive in expanding its commercial and industrial lots business this year.
“This product has traditionally been part of our menu of offerings, accounting for maybe 10% of our sales. This is an area where we believe there are opportunities because the buyers are businesses. Buyers would like to have commercial property as part of their portfolio of real estate assets,” she added.
However, Ms. Dy reiterated that ALI will continue to focus on expanding its premium residential segment.
“Our focus on the premium segment will continue, specifically the premium segment and more horizontal developments,” she said.
“The middle market continues to have some challenges, not just in terms of interest rates being stickier than we would have wanted, but also some oversupply in particular segments and geographies,” she added.
Sales from premium brands AyalaLand Premier and Alveo rose by 25% to P80.8 billion in 2024, accounting for 64% of total sales.
Ms. Dy said ALI will soon launch the Laurean luxury residential tower project. It will be located on a half-hectare property in Makati City.
“This would be more varied. It would have one-, two-, and three-bedroom units. We’re trying to attract a broader market for it,” she said.
AYALALAND LOGISTICSMeanwhile, ALI’s industrial park and cold storage subsidiary AyalaLand Logistics Holdings Corp. (ALLHC) sees growth opportunities as manufacturers adjust their strategies in response to uncertainties surrounding new tariffs imposed by the United States government.
“The recent macroeconomic shifts offer a potential advantage for ALLHC. The enhanced attractiveness of the Philippines as an investment hub is expected to boost demand for its industrial parks, warehouses, and cold storage facilities,” ALLHC President and Chief Executive Officer Robert S. Lao said during the company’s virtual annual stockholders’ meeting on Thursday.
“Moreover, the Philippines’ competitive advantage within ASEAN could make our sites a preferred location for manufacturers, directly benefiting ALLHC as they seek new operational sites. Through a dynamic approach, ALLHC will proactively adapt to the evolving requirements of its foreign and local clients and navigate the shifting business climate,” he added.
US President Donald J. Trump recently announced 10% blanket tariffs on all its trading partners. However, he implemented a 90-day pause on a plan to impose higher reciprocal tariffs on some countries.
The US imposed a 17% reciprocal tariff on Philippine exports, the second lowest among Southeast Asian countries after Singapore’s 10%.
Last month, ALLHC said its subsidiaries acquired 3M Pangasinan in Urdaneta City, Pangasinan, and 3M Iloilo in Santa Barbara, Iloilo, as part of growing its cold storage network.
The two properties, renamed Artico Urdaneta and Artico Iloilo, were the sixth and seventh facilities under ALLHC’s Artico cold chain brand. These additions brought 11,200 new pallet positions, putting the company’s total storage capacity at 31,500.
On Thursday, ALI shares rose by 0.41% or ten centavos to P24.70 apiece, while ALLHC stocks gained by 2.21% or three centavos to P1.39 per share. — Revin Mikhael D. Ochave