Ayala Land acquires Aegis PeopleSupport in Cebu

The property developer purchases all 8.2 million common shares of the BPO site to expand its office leasing business

MANILA, Philippines – Ayala Land Incorporated has acquired Aegis PeopleSupport Realty Corporation site in Cebu for P435 million ($9.80 million).

Ayala Land purchased all of the 8.2 million common shares of Aegis PeopleSupport in line with its thrust to expand its office leasing business, the property developer’s senior vice president and chief finance officer Jaime Ysmael said in a disclosure to the stock exchange.

Aegis and PeopleSupport merged in October 2008 to create a global business process outsourcing (BPO) leader.

Aegis PeopleSupport is a Philippine Economic Zone Authority (PEZA)-registered entity and the owner of Aegis building along Villa Street, Cebu IT Park, Lahug, Cebu City.

A certified Leadership in Energy and Environmental Design (LEED)-gold office, the Aegis building has a gross leasable area of 18,092 square meters and is largely occupied by Teleperformance under a long-term lease.

In 2014, the property firm reported a 26% jump in net income to P14.8 billion ($332.85 million) from P11.7 billion ($263.13 million), boosted by strong performance of property development and commercial operations.

Consolidated revenues reached P95.2 billion ($2.14 billion), a 17% year-on-year increase boosted by higher residential sales and better commercial leasing revenues.

Ayala Land is aiming to triple the size of its shopping malls, office space, and hotel and resorts businesses over the next 7 years in a bid to achieve a P40 billion ($899.67 million) net income by 2020.

For office development, the company is aiming to have by 2020 some 1.8 million gross leasable square meters, from 600,000 as of end-2013.

Its hotels and resorts business is also projected to reach 6,000 room keys by 2020, from 2,000 room keys as of end-2013.

For 2015 alone, Ayala Land will also add 106,000 square meters of office leasable space with the completion of several projects in Bonifaco Global City and Alabang. – Rappler.com