ALI – Maniolas

ALI eyes debt market to fund P66-B capex

Economy

Feb 142014

MANILA, Philippines – Property giant Ayala Land Inc. (ALI) is tapping the debt market as a major fund source for its P66-billion capital spending this year.

The property developer of the Ayala conglomerate is banking on high liquidity in the financial service sector for its fundraising program, a top company executive said.

“(Fundraising will be) still primarily through debts…we have debt capacity that we can utilize,” said ALI chief finance officer Jaime Ysmael.

ALI has already refinanced most of its debts, making the company comfortable in the current maturity profile and interest rates due to lenders, he said.

The real estate firm is allotting close to P70 billion for its capital expenditures this year to support landbanking and project developments.

In 2013, ALI spent P66 billion for its various projects, backed by a P12.2-billion overnight share sale in March, a P15-billion bond sale in August and a P6-billion bond offering in October.

Business ( Article MRec ), pagematch: 1, sectionmatch: 1

“Given our pipeline of projects, we estimate that our capital spending will be similar in magnitude [for 2014],” Ysmael earlier said.

“Hopefully the high liquidity in the banking system will help mitigate any increase [in interest rates],” he said.

The Bangko Sentral ng Pilipinas has assured companies it has a wide range of toolkit to address any possible rate increases and make economic conditions still workable for everyone, Ysmael said.

ALI is primarily into the development of residential projects, lease of commercial and office space and sale of prime lots. The company is also beefing up its recurring income portfolio through new hotels, convenience stores, department stores, supermarkets and hospitals.

In January to September last year, ALI’s profits jumped 30 percent to P8.6 billion, mainly driven by the upbeat performance of its property development, commercial leasing and services businesses.

The property firm is wrapping up its 5-10-15 program, launched in 2009 amid the global financial crisis. It is a five-year plan ending in 2014 that aims to boost ALI’s net income to P10 billion and return on equity to 15 percent.

ALI unit seeks BOI perks

Economy

Dec 092013

MANILA, Philippines – Ayala Land Inc.’s mass housing unit is seeking incentives from the Board of Investments (BOI) for the expansion of its project in Quezon City. The BOI said Amaia Land Corp. “is applying for registration with the BOI as expanding developer of low-cost mass housing project (Amaia Skies Cubao Tower 3) with a total capacity of 1,043 low-cost mass housing units on a non-pioneer status.” The project is located at EDSA and 5th Avenue, Brgy. Socorro in Cubao. The firm can qualify for income tax holidays if its application would be approved by the BOI. To attract investments, the BOI grants incentives to firms which engage in activities being promoted by the government. Every year, the BOI comes up with the Investment Priorities Plan (IPP) which identifies activities that can qualify for incentives. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Mass housing is listed as a preferred activity in the 2013 IPP. Other preferred activities in the IPP are agriculture or agribusiness and fishery; creative industries or knowledge-based services; shipbuilding; iron and steel; infrastructure; research and development; green projects; motor vehicles; strategic projects; hospital or medical services; and disaster prevention, mitigation and recovery projects. The 2013 IPP also has a mandatory list covering industries that require their inclusion as provided for under existing laws and covers export activities as well as priority activities identified by the Regional BOI of the Autonomous Region in Muslim Mindanao.

ALI gains full ownership of El Nido

Economy

Nov 202013

MANILA, Philippines – Property giant Ayala Land Inc. (ALI) has gained full ownership of an upscale resort in El Nido in Palawan, three years since first buying a majority stake into the project. In a regulatory filing, ALI said subsidiary AyalaLand Hotels and Resorts Corp. signed an agreement to acquire Asian Conservatory Co.’s (ACC) 40-percent stake in El Nido Resorts. “This acquisition will effectively make the El Nido Resorts wholly-owned by ALI. This will solidify ALI’s presence in the resort and leisure development market and help boost the country’s tourism industry,” the property firm said. In 2010, ALI bought ACC’s 60-percent stake in El Nido Resorts for P2 billion, marking the property firm’s third foray into the resort and leisure industry. “The company intends to take El Nido Resorts to its next stage of sustainable development,” ALI said, adding that the transaction is expected to close before yearend. ACC, through its subsidiaries under the Ten Knots Group, owns and operates the world famous El Nido Resorts in Lagen and Miniloc Islands in Northern Palawan. The El Nido Resorts was a recipient of the Wild Asia Responsible Tourism Award in 2009 and was one of 15 Favorite Green Hotels recognized by Travel+Leisure magazine in 2007. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In 2007, ALI first ventured into the resort and leisure segment by starting the P4-billion development of the 320-hectare Anvaya Cove in Bataan. The hotel portfolio of AyalaLand Hotels and Resorts currently include Fairmont and Raffles Hotels, Read More …

Ayala Land starts P15-B bond offer

Economy

Jul 192013

MANILA, Philippines – Property giant Ayala Land Inc. (ALI) has started tapping the bond market, marking its largest fundraising in the capital market thus far. In a disclosure, ALI said it kicked off yesterday the public offer of P15 billion worth of bonds due 2024. “It is ALI’s largest debt issue for a single tenor to date,” the company said, adding that the bonds carry a coupon rate of five percent. The public offering will run until July 25, which will be followed by the issues listing on July 30. “The issue size is inclusive of an additional P5 billion oversubscription due to strong investor demand,” ALI said. “Proceeds of the offering will be utilized to partially finance the company’s capital expenditure program for the year in support of its aggressive growth plans,” it added. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Last week, the property firm secured the Securities and Exchange Commission’s approval for the issuance of as much as P21 billion worth of bonds in different tranches. In June, ALI’s board approved the sale of up to P21 billion in long-term, fixed-rate corporate bonds through a general public offering. It will be the largest fundraising of ALI thus far, eclipsing the P15 billion it secured from a retail bond offering in April last year. ALI hired BPI Capital Corp., BDO Capital & Investment Corp., China Banking Corp., ING Bank N.V. Manila branch and Standard Chartered Bank as joint lead underwriters and bookrunners while First Metro Investment Read More …

ALI to issue P21-B bonds

Economy

Jul 162013

MANILA, Philippines – Property giant Ayala Land Inc. (ALI) has secured the approval of the Securities and Exchange Commission (SEC) to issue as much as P21 billion worth of bonds. This development will allow the property arm of the Ayala conglomerate to conduct its largest fundraising in the capital market. In a disclosure, ALI said it has received SEC approval to sell up to P21 billion in bonds. “The company will issue the initial tranche of the bonds as soon as all other necessary documents are submitted and all the required approvals are secured, which hopefully will be completed before the end of the month,” ALI said. Last week, ALI chief finance officer Jaime Ysmael said the fundraising will “partly finance our capital expenditures program for the year.” In June, ALI’s board of directors approved the sale of up to P21 billion in long-term, fixed-rate corporate bonds through a general public offering. It will be the largest fundraising of ALI thus far, eclipsing the P15 billion it secured from a retail bond offering in April last year. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Philippine companies have been tapping funds from different channels like bonds and banks amid low interest rates and high liquidity. The property firm allotted P65.5 billion in capital expenditures this year as it plans to launch 69 new projects worth P129 billion to ensure continuous growth in the coming years. It launched 67 new projects last year worth P110 billion. In the first quarter, Read More …

ALI reconsiders P6-B Bacolod project

Economy

Jul 082013

Bacolod City, Philippines – After saying last year that it wants to “disengage” from the project, property giant Ayala Land Inc. said it is still interested to proceed with its P6-billion Capitol Civic Center on the 7.7-hectare prime property of the Negros Occidental provincial government located in Bacolod. ALI said that it is willing to proceed with the Capitol project if the court case on the said property filed by rival bidder SM Prime Holdings Inc. is “resolved with finality in favor of the province.” In a letter to Negros Occidental Gov. Alfredo Maranon Jr. dated July 3, ALI senior vice president Emilio Tumbocon said: “Please trust that your steadfast support and advancement for our transaction, notwithstanding the challenges, weigh in greatly in our consideration of our position and assessment of our plans.” “While we are open to proceed with the Capitol project, we remain seriously concerned with the pending legal case as this compromises our ability to acquire clean and undisputed legal title to the property and undertaking the full development of the same, particularly that area subject of our deed of conditional sale, especially since our plans require us to develop the area into components which are intended to be marketed and sold,” Tumbocon wrote further. “If you are amenable to our suggestion, we are willing to sit down with you to discuss the manner by which we could proceed with the transaction,” Tumbocon, also ALI’s group head for Visayas-Mindanao and Superblock projects, said. In a press conference Friday, Maranon, however, Read More …

Pilipinas Shell claims it added chemical that gives odor to Two Serendra LPG supply

News

Jun 142013

Pilipinas Shell claims it added chemical that gives odor to Two Serendra LPG supply

The supplier of the liquefied petroleum gas to Two Serendra has claimed that the LPG it provided the condo complex had an additive meant to give the gas a distinct odor. “We do inject a chemical additive called ethyl mercaptan in what we supply,” Roberto Kanapi, vice president for communication of Pilipinas Shell, told GMA News Online. He added that, “We even inject more than what is required by ASTM (American Society for Testing Material).” Investigators have been trying to determine why the tenant of the condo unit which got blown away in a powerful blast at Two Serendra on May 31 did not notice any smell that would have served as a sign that LPG was leaking in the supply pipes. Fort Bonifacio Development Corporation (FBDC), the main developer of 240-hectare Bonifacio Global City, chose Pilipinas Shell as its joint venture partner with Bonifacio Gas Corporation in the supply and building of piped gas installations in the development. Bonifacio Gas, incorporated on November 12, 1998, was formed to build and operate an underground pipeline network that will provide a centralized gas distribution system within the Bonifacio Global City. FBDC is backed by the Bases Conversion Development Authority, Ayala Land Inc. (ALI) and Evergreen Holdings Inc. of the Campos Group. On June 7, Interior Secretary Mar Roxas II said a gas leak, not a bomb, was the most likely cause of the May 31 explosion, which left three people dead and six others injured. The DILG order prompted ALI to Read More …

FTI offers new investment opportunities

Economy

Jun 062013

MANILA, Philippines – With the recent acquisition of Food Terminal Inc. (FTI) by Ayala Land Inc. (ALI) in late 2012, it is expected that the 120-hectare property will soon grow to become one of the brightest and busiest commercial business districts in Southern Metro Manila. In a signing ceremony witnessed by President Aquino at the Malacañang Palace, ALI executives led by chairman Fernando Zobel de Ayala expressed their plans to develop the sprawling 74-hectare complex into a commercial district featuring dining, retail and entertainment for residents and employees in the area as well as travelers from various parts of the country. The complex already features various services and amenities such as banks, fast-food restaurants, food markets and the Sunshine Plaza Mall. FTI began as the Greater Manila Terminal Food Market in 1968 through a Presidential directive meant to ensure price stability and productivity of the country’s agricultural economy. In the 80s, FTI became involved in retailing various products at government subsidized prices, trading, food processing and cold storage. Today, FTI operates as a provider of prime lots for industrial, commercial and residential use. Many of its industrial buildings offer leasable facilities for various manufacturers, exporters and food producers. Conveniently located near the country’s major local and international airports such as the Ninoy Aquino International Airport Terminal 3, South Luzon Expressway, C-5 and C-6 roads, as well as surrounded by various communities, FTI is a promising hub for economic activity and a key pivotal convergence point for the south. The planned Read More …

ALI jumpstarts dev’t of P20-B Circuit Makati

Economy

May 052013

ALI jumpstarts dev’t of P20-B Circuit Makati

MANILA, Philippines – Property giant Ayala Land Inc. (ALI) has jumpstarted the P20-billion development of the former Sta. Ana racetrack into a masterplanned entertainment and leisure district. Upscale residential brand Alveo Land launched on Saturday the first phase of the two-tower Solstice, the maiden residential project in the 21-hectare Circuit Makati. “Solstice will be the pinnacle of expression for the dynamic and vibrant living experience that Circuit Makati espouses,” said Alveo Land president Robert Lao. He earlier said that investment per tower is around P2.5 billion. This forms part of the property firm’s plan of launching one tower every year in Circuit Makati to fill the mixed-use community with eight to 10 towers in the next 10 years. “Solstice Tower One will be 41 floors high and will provide 461 residential units in a complete range of studio, one-, two-, and three-bedroom units,” ALI said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 One-bedroom units ranging from 57 to 96 square meters (sqm) will account for majority of the offerings given Alveo Land’s positioning as a developer for mobile individuals, professionals, executives and starting-out couples, ALI said. Turnover for Solstice Tower One is targeted in the third quarter of 2018. Alveo Land said it will also introduce exclusive two- and three-bedroom Sunrise Villas at the third to seventh levels of Solstice. Amenities at the podium’s eighth floor include a lap and lounge pool, juice bar, lounge area, and kids’ play area and pool, as well as an indoor and Read More …

ALI trims capital to P21.5B

Economy

Feb 012013

MANILA, Philippines – Property giant Ayala Land Inc. (ALI) will trim its authorized capital stock to P21.5 billion as several preferred shares were eliminated from the company. In a disclosure, ALI said it secured the Securities and Exchange Commission’s approval for the decrease in its authorized capital stock by P1.303 billion to P21.5 billion from P22.803 billion. The lower authorized capital stock reflects “the aggregate par value of the 13.034 billion preferred shares which have been redeemed and eliminated,” ALI said. Hence, ALI’s capital stock will decline to P21.5 billion divided into 20 billion common shares with a par value of P1 and 15 billion voting preferred shares worth 10 centavos each. This is lower than the P22.803 billion authorized capital divided into 20 billion common shares at P1 each, 15 billion voting preferred shares at 10 centavos each and 13.034 billion preferred shares worth 10 centavos each. The company’s board of directors approved the capital decrease in April last year. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 ALI is into residential and office development, and shopping mall and hotel operations. In the nine months to September last year, ALI’s earnings reached P6.62 billion, up 27 percent from P5.23 billion a year earlier on the back of the strong performance in all its business lines.