Written by: Tina Dumlao
Property giant Ayala Land, Inc. came into its own in 1988 after being spun off from Ayala Corp., which then decided that the time was right for its real estate division to unleash its full potential with the development of Makati into the country’s leading financial and central business district as its first massive project.
Fast forward to 2023 and ALI is yet to reach its zenith, continuing to break new ground and carve new markets or sectors that contribute to the growth and dynamism of the Philippine economy.
One Ayala Avenue East and West BPO Towers in the Makati Central Business District are among the latest additions to AREIT’s growing office portfolio
ALI, for example, listed its real estate investment trust company AREIT during the pandemic in August 2020, making it the first REIT on the Philippine Stock Exchange, thus creating a new investment class for investors.
It has maintained its profitability despite uncertain times with its assets under management nearly tripling since its listing to P87 billion.
From its initial public offering in 2020, the company has grown revenues annually by 51 percent on average, driven by the significant expansion of its assets. AREIT has a diversified portfolio of offices, malls, hotel, and industrial land, which reduces concentration risk in any one particular asset class.
The company was awarded Best Premier REIT and Most Innovative REIT Offering in the Philippines by International Finance Awards 2022 and received two Golden Arrow awards from the Institute of Corporate Directors based on the 2021 ASEAN Corporate Governance Scorecard.
AREIT also became the first Philippine REIT included in the FTSE EPRA Nareit Asia ex-Japan REITs 10-percent capped Index in 2021. It is a constituent of the MSCI Philippine Small Cap Index, the FTSE Small Cap Index and the Philippine Property Index.
Just last September, Ayala Land and AREIT signed a Memorandum of Understanding (MOU) with the International Finance Corp. (IFC), signifying a partnership that would help accelerate the transition of the Philippine property sector toward net zero.
ALI and AREIT aim to achieve by 2025 EDGE Zero Carbon certification across its portfolio of 1.5 million square meters, with advisory support from IFC.
This ambitious undertaking aims to establish the Philippines’ largest EDGE Zero Carbon office portfolio, comprising 900,000 square meters to be certified by 2024, and an additional 600,000 square meters by 2025.
ALI is also out to define skylines abroad, starting with Malaysia through Avaland Berhad, a newly rebranded and fast-rising property developer and its group of companies.
Avaland – formerly known as MCT Berhad – started as a construction company and in February 2018, it became an ALI subsidiary. The company has since expanded its product offerings to luxury residences, with its development of Aetas Damansara in Petaling Jaya as well as its resort living residences, Alira Subang Jaya.
The expansion into Malaysia is part of ALI’s bigger thrust to expand its footprint in Southeast Asia and take advantage of the growth potential and long-term prospects of markets outside the Philippines.
The Group’s landbank remains robust with 196 acres of land with an estimated GDV of RM12 billion, which will sustain its earnings over the next 10 years. This includes the latest land acquisitions amounting to 9.5 acres at Bangi, Seputeh and Taman Desa for a total purchase consideration of RM154 million. With a combined GDV of approximately RM1.2 billion, these new landbank will contribute positively to the Group’s growth plans and earnings prospects in the near future.
In September, Avaland launched its Sustainability Roadmap which reinforces its commitment to integrate sustainable and eco-friendly features that will benefit its customers across all its projects.
SkyPark is a mixed-use integrated development of Avaland in the Silicon City of Cyberjaya that consists of residential and offices.
ALI is likewise bullish about the prospects of AyalaLand Logistics Holdings Corp., (ALLHC) which in just seven years since Ayala Land’s entry in 2016, has become the leading developer and operator of industrial parks and real estate logistics in the Philippines.
ALLHC creates dynamic industrial and logistics centers that energize and deliver businesses to meet the demands and opportunities of the new economy with 5 industrial parks, over 309k sqm of warehouse space, 95,000 sqm of commercial GLA and 10,300 cold storage pallet positions.
It further diversified in 2022 with the groundbreaking of its first joint data center campus in joint venture with FLOW Digital Infrastructure in Laguna.
The soon-to-rise 36MW IT-capacity A-FLOW Data Center campus will contribute to the Philippine’s growing digital infrastructure needs and transition to a digital economy.
The partnership leverages ALLHC’s track record in industrial real estate development and FLOW’s best-in-class next-generation data center design, development, and operational capabilities. The project’s initial roll-out of 6MW is expected to be ready for service by the end of 2024.
By 2025, ALLHC is committed to build a national footprint through presence in 10 key areas from the current seven; grow its warehouse gross leasable area (GLA) to 500k sqm from 309k at present, and expand its new business platforms.
But while blazing new trails, ALI has stayed true to its core competence of building new growth centers. From the Makati Central Business District, ALI has developed Ayala Alabang, Cebu Park District, Bonifacio Global City (BGC), and Nuvali, with more being quickly added to the list.
With 12,483 hectares in its land bank, 30 estates, and presence in 57 growth centers across the country, ALI offers a balanced and complementary mix of residential developments, shopping centers, offices, hotels and resorts, and other businesses that reflect the value the company places on sustainability, for the people and the planet.
Indeed, even as it embraces changes, what will remain the same are commitments to excellence and service to the nation.
ADVT.