Property developer Ayala Land Inc. said Thursday it will launch P125 billion worth of real estate projects this year, up 40.7 percent from P88.8 billion worth of projects it launched in 2017.
Ayala Land president and chief executive Bernard Vincent Dy said P100 billion worth of residential and office for sale projects would be offered to the market this year while P25 billion worth of malls, hotels, and office for lease projects would also be unveiled.
Among the company’s mall openings this year are One Bonifacio High Street which has 23,000 square meters of gross leasable area and Vertis North 3 with 38,000 sqm.
The property firm is also set to complete the 19-room Huni Sicogon hotel and the 153-room Seda hotel with Lio Estate in Palawan.
Ayala Land said to finance these project launches, it earmarked P110.8 billion in capital expenditures for 2018, up 21.2 percent from P91.4 billion in 2017.
Dy said 43 percent of programmed spending this year would be for residential, 17 percent for malls, 12 percent for land acquisition and the rest for office, hotels and resorts and estate development.
Dy said the prospects for the property sector remained good as interest rates and mortgage rates were still at low levels while dollar remittances and the business process outsourcing industry remained strong.
Ayala Land said that given these factors, it was on track to hit the net income target of P40 billion by 2020.
“To be able to achieve the P40-billion net income target, from 2018 to 2020, we need to grow by 17 percent annually and we feel that is achievable primarily because the economy continues to grow which continues to support the growth of the property sector,” Dy said.
Ayala Land’s net income grew 21 percent last year to P25.3 billion from P20.9 billion in 2016.