Ayala's Daang Hari project to complement real estate biz
MANILA, Philippines - The Daang Hari project may just be a mere four-kilometer toll road but it plays a bigger role in the Ayala empire.
The conglomerate successfully made a bid for Daang Hari road project, the first of the public-private partnership flagship infrastructure scheme of the Aquino government
"This road project provides significant opportunities for synergies within the Ayala group, especially our real estate group, Ayala Land, Inc., as it cuts travel time to our residential and commercial projects in this rapidly growing part of the metropolis,” Fernando Zobel de Ayala, AC president and chief operating officer, said in a statement.
Ayala Land, one of the country's biggest real estate firms, is behind Alabang Town Center and Ayala Alabang Village, two posh properties located near the Daang Hari road.
The Department of Public Works and Highways will formally award the 30-year concession on December 22. The agency announced on December 15 that Ayala Corp's P902 million bid was higher than the San Miguel-led consortium's P608 million.
Ayala in partnership with Spanish engineering firm Getinsa expects to begin the detailed design stage, which will be completed in four months. The DPWH expects to complete all right-of-way requirements within six months of signing of the concession agreement in January.
The Daang Hari project will be completed in the second half 2013.
Ayala Corp. will charge a toll fee starting at P17 per vehicle. The government will get no share from the toll fee the conglomerate will charge.
Ayala sees a "lot of volume" in the Daan Hari project as it benefits from future developments in the area. The conglomerate has commissioned an independent traffic consultant to have third party point of view on the project.
Ayala Corp. has principal business interests in real estate and hotels, financial services, telecommunications, electronics, information technology and business process outsourcing services, water utilities, automotive, among others.