ALI buys out partner in APPCo
Ayala unit moves to expand office leasing businessBy Doris C. Dumlao
Philippine Daily Inquirer
Property giant Ayala Land Inc. has taken full control of a subsidiary that owns business process outsourcing (BPO) buildings, thereby boosting its office property portfolio.
In a disclosure to the Philippine Stock Exchange on Tuesday, ALI said it had entered into an agreement to acquire the 32-percent stake of Global Technologies International Ltd. in ALI Property Partners Co. for P3.52 billion. (APPCo).
APPCo owns BPO buildings in Makati, Quezon City and Laguna, which have a total gross leasable area of about 230,000 square meters.
After buying out its partner in APPCo, ALI now owns 100 percent of the subsidiary, company chief finance officer Jaime Ysmael said in a text message.
“This acquisition is aligned with ALI’s thrust of expanding its office leasing business and increasing its recurring income ,” ALI said in its disclosure.
Given its growth trajectory, ALI expects to sustain double-digit growth in both net profit and revenue this year, despite a very high base set in 2012. ALI reported last week that its net profit last year grew by 27 percent to hit a record-high of P9.04 billion, exceeding market expectations.
ALI president Antonino Aquino said prospects remained bright for the property market this year and ALI would remain ready to seize the opportunity, not just in residential but also in the office space and industrial development segments.
In the past, he said BPOs had driven the office property market but now, demand had been building up also for top-tier or multinational headquarter space. He noted that two of these developments were launched by ALI last year in BGC, alone—High Street South and PSE Center.
“We’re planning more of these developments in the future,” he said.
“We’ve put a strategy in place that will hopefully continue and ride the momentum that is happening in the Philippine economy,” Aquino said.
Short URL: http://business.inquirer.net/?p=117191