MANILA, Philippines – Property giant Ayala Land Inc. has budgeted P60 billion for over 25 years for another development project at The Fort to take advantage of projected brisk demand.
In a briefing on Tuesday, January 17, 2012, Jenylle Tupaz, head of project development for Ayala Land’s upper-middle market unit Alveo Land, said they will build a mixed-use urban project called Alveo Land High Street South.
Tupaz said they they plan to build 12 to 18 residential towers and/or office buildings, with commercial areas in the ground floor, on the sprawling 7.6-hectare area.
“This development will be home to the most prime residential and commercial ideals all over the metropolis and is set to emerge as a premiere cultural district, complementing BGC’s inherent dynamics and character,” said Robert Lao, Alveo Land president.
The project sits on a property owned by Fort Bonifacio Development Corp. Ayala Land will development it through a 50-50 partnership with Evergreen Holdings Inc of the Campos family.
“So far… we don’t see any let up in the market for BGC. It’s a much sought-after city to locate in not only for residential but also for the offices. We see that to continue,” Tupaz explained.
To cite an example of brisk demand, the officials noted The Meridien, the first planned residential condominium at High Street South. At a selling event in November 2011, 222 units were sold, or 44% of the tower.
The 31-storey tower will have 508 units, ranging from studio, 1-bedroom, 2-bedroom, 3-bedroom, urban villas and penthouse units. Unit prices start at P4.4 million for a 33 square-meter studio unit up to P26.1 million for a 234 square-meter urban villa.
The Meridien could cost them P3.5 billion to develop against projected sales of P5.1 billion. New towers are underway.
One a month
The Ayala group is bullish about the prospects of real estate products.
Alveo Land, which contributes one-third of Ayala Land’s residential revenues, aims to launch an average of one residential project in major growth centers nationwide per month.
In 2011, Aveo Land launched 11 projects, equivalent to 2,700 units.
Other property firms, including Andrew Tan-led Megaworld, Sy-led SM Development Corp, Gokongwei-led Robinsons Land, and Villar-led Vista Land & Lifescapes, also have bright hopes for their property business.
The real estate industry is a key indicator of confidence in the long-term prospects of a country. – Rappler.com