Ayala Land unit sees over P10B revenue from new prime office
MANILA, Philippines – The upscale subsidiary of property giant Ayala Land Incorporated (ALI) is expecting to generate P10.7 billion ($228.19 million) in revenues from its new Alveo Financial Tower, set to be the most expensive office space in Makati City.
Alveo Land Corporation said its new prime office, Alveo Financial Tower – formerly the abandoned JAKA Tower along Ayala Avenue – is now 60% sold in its first-day sale, generating P5.8 billion ($123.69 million) in sales.
Jennylle Tupaz, head of Alveo's Project Development Group, said in a media briefing on Tuesday, September 29, that the 49-story Alveo Financial Tower is the only office building offering 363 office units for sale – priced at P240,000 ($5,119) per square meter (sq m) or P23.7 million ($505,524), to P36.7 million ($782,554) per unit with an average size of 116 sq m.
"The take up so far came from mostly local buyers – around 80% – while the rest were taken up by foreign investors," Tupaz said.
With its much-coveted location on Ayala Avenue, Tupaz said the Alveo Financial Tower has become an investment choice for high-powered businesses and organizations wanting to be part of the country’s premier financial center.
The Alveo Financial Tower will stand on a 2,400 sq m parcel of land at 6794 Ayala Avenue, having a gross floor area of 63,739 sq m. It is slated for turnover by 2020.
Asked why the tower will take 4 years to complete, Tupaz said the group is "careful" in terms of development as it will build the 49-story building on the existing 21-level structure of the former JAKA Tower which had been there for 19 years.
"There’s a minimum disturbance plan that we’re looking at. We need to be careful, it’s an active city, and the structure is already 19 years old, of which construction stopped way back 1998. We really want to be careful," Tupaz said.
By the turnover in 2020, the tower will have retail components on its ground, 2nd, and 3rd floors, as well as business activity area on its 5th and 17th floors, according to Alveo Land.
Alveo programs P10 billion ($213.23 million) capital spending yearly.
This year, it targets P35 billion ($746.31 million) to P40 billion ($853.18 million) worth of project launches for the whole year of 2015, of which 6 projects out of the planned 10 projects this year will be launched in the first 6 months of 2015.
To date, Alveo has 36 existing projects in 10 locations, mostly central business districts in the metropolis and in Cavite, Cebu, Davao, Laguna, Pampanga, and Tagaytay.
Alveo is the upscale and high-end residential and commercial offices brand under the Ayala property umbrella, with others being involved in luxury market (Ayala Land Premier), middle market (Avida Land Corporation), and economic housing (Amaia Land Corporation). – Rappler.com
$1 = P46.88