MANILA, Philippines—Real estate giant Ayala Land Inc. has committed to invest an unprecedented P60 billion over the next five years in various development projects designed to strengthen the status of Makati City as the country’s unrivaled capital for business, lifestyle, entertainment and culture.
ALI president Antonino Aquino said in a briefing Thursday that the budget represents the single biggest investment that the company will make in a single city and a testament to the “aggressive stance” that the real estate company is taking to sustain its “high growth strategy.”
The P60-billion capital expenditure budget will be spread out across six districts within Makati City where it intends to put up mixed use developments, but about half of it will go into the continuous redevelopment of the Ayala Center, including the Makati central business district.
Another P20 billion will be invested in the development of the Sta. Ana district—on the former Sta. Ana racetrack—into an entertainment-centered area, with the balance going into the Makati South (on the corner of EDSA and McKinley Ave., heading toward Forbes Park), Makati North (near the Makati Medical Center) and Ayala Triangle districts.
According to Aquino, ALI’s decision to invest a significant amount in Makati City was prompted by renewed optimism and confidence in the Aquino administration as well as the country’s economic prospects.
Company expectations are that the country will yield an annual economic growth over the next five years of at least 5 percent. This can even go up to 6 percent a year if infrastructure spending accelerates and public-private partnership projects become reality.
Prevailing low interest rates and controlled inflation, which have a direct impact on the sales of real estate projects, are likewise contributing to the bullishness of the Ayala group.
Originally posted at 05:14 pm | Thursday, March 22, 2012