Major property developer Ayala Land Inc. plans to raise roughly P20 billion from the debt market to partially finance its P111-billion programmed capital spending this year.
Ayala Land chief finance officer Augusto Bengzon said in a recent interview the company would consider a bond issue after San Miguel Corp. and SM Prime Holdings Inc. had completed their respective offerings.
“You should expect us to be going out very soon, for a combination of bonds and we will also do some bilaterals because there are banks that continue to offer us very good rates,” Bengzon said.
“The capex roughly will require us to raise about P20 billion, so we’re looking at half from the retail bond segment, and the half from bilaterals owing to banks,” he added.
Bengzon said Ayala Land still had P18 billion remaining under its P50-billion bond shelf registration earlier approved by the Securities and Exchange Commission.
This year’s P111-billion programmed capital expenditure is 21 percent higher than P91.4 billion spent by Ayala Land last year.
Ayala Land plans to earmark 43 percent of the programmed spending this year for residential projects, 17 percent for malls, 12 percent for land acquisition and the balance for office, hotels and resorts and estate development.
Ayala Land is also set to roll out new leasing formats, namely Clock In, a co-working, offices, meeting rooms and virtual office service, and The Flats, a chain of affordable dormitories for rent to young professionals in need of living space close to their place of work.
The property firms plans to open Clock In in four new locations, namely Ayala North Exchange in Makati, Vertis North in Quezon City, The 30th in Pasig and Bonifacio High Street in Bonifacio Global City.
It currently operates branches in the Makati Stock Exchange and BGC Technology Center.
Clock In serviced offices are fully equipped and furnished space targeting start-up ventures, small and medium enterprises and groups working on per-project basis.
For The Flats, Ayala Land plans to build the first branch in Makati in 2018 with two more outlets in BGC in the next two years and one in Circuit Makati by 2021. Once completed, the four new buildings will offer 1,464 rooms equivalent to 5,848 beds.