Ayala Land eyes more takers for cold storage

MANILA, Philippines – AyalaLand Logistics Holdings Corp. (ALLHC) is easing off the accelerator on new cold-storage projects as it turns its attention to improving occupancy and maximizing returns from a rapidly expanding network.

ALLHC is the industrial real estate arm of property giant Ayala Land, with businesses spanning industrial parks, warehouses and cold-storage facilities.

READ: ALLHC first-quarter earnings down 92% to P5M

Patrick Avila, chief operating officer of ALLHC, said the company’s immediate priority is to stabilize operations across its growing portfolio of cold-storage facilities rather than pursue aggressive expansion.

“The focus right now is to stabilize the operations and the occupancies,” Avila said, noting that the company already operates nine cold-storage facilities.

The shift comes after ALLHC recently opened two new Artico Cold Chain facilities.

Artico Sta. Rosa, Laguna, began operations recently, while Artico Consolacion, Cebu, has also been completed. Both projects were among the facilities that broke ground last year.

One more facility

While expansion has slowed, the company still has one major cold-storage project under construction in Vermosa, Cavite. Avila said the facility is targeted for completion in the latter part of this year.

The new facilities are expected to add about 9,000 pallet positions this year. Once the Vermosa project is completed, ALLHC’s cold-storage network is projected to exceed 40,000 pallet positions.

The company is also sharpening its focus on sustainability as it scales up operations.

Avila said several facilities have secured Excellence in Design for Greater Efficiencies (EDGE) certification, while ALLHC is expanding its participation in the Green Energy Option Program (GEOP) and increasing the use of renewable energy sources across its assets.

The company’s Artico facility in Mandaue already combines GEOP participation, EDGE certification and rooftop solar installations, serving as a model for future facilities.

ALLHC is now working to roll out rooftop solar systems across additional sites, including facilities in Santo Tomas, Mabalacat, Iloilo and Urdaneta. The company aims to have at least five facilities under GEOP by year-end and eventually equip all facilities with rooftop solar.

For its broader logistics business, ALLHC recently opened a warehouse facility in Mabalacat, Pampanga, bringing its total logistics portfolio to about 380,000 square meters.

Still, Avila said the company is taking a measured approach to further warehouse expansion.

Projects remain in the pipeline, but management’s priority is to ensure that recently completed assets achieve stable operations before moving ahead with another wave of developments.

The strategy underscores ALLHC’s growing preference for operational efficiency over rapid expansion as it builds one of the country’s largest cold-storage platforms.

Cold storage also remains the company’s primary growth driver, with traditional dry-storage facilities playing only a supporting role in its logistics portfolio. INQ