Property developer Ayala Land Inc. said a unit is acquiring a 9.25-acre (3.75 hectares) property in Klang Valley area in Kuala Lumpur, Malaysia worth P2 billion as part of its expansion.
ALI president Bernard Vincent Dy said in a news briefing following the annual stockholders’ meeting unit MCT Berhad was making its first land acquisition after the conglomerate increased its stake in the Malaysian firm to over 66 percent in February.
“Now that we are majority owner, we now have a vehicle to continue to expand in the area. The board recently approved the acquisition of 9.25-acre land in Klang Valley which will be our first land acquisition in Malaysia since we participated in MCT Berhad,” Dy said.
Dy said MCT Berhad would focus developing mixed-use estates with residential developments focused on attracting middle-income earners in Malaysia.
Meanwhile, a top executive said ALI was set to raise P10 billion from the issuance of 10-year bonds.
ALI chief finance officer Augusto Bengzon said the offer period for the 10-year bond offering started April 16 and would end April 20.
Bengzon said the bond offering was so far 1.5-times oversubscribed with state pension funds Social Security System and Government Service Insurance System subscribing to P1.6 billion worth of ALI bonds.
The P10-billion bonds carry a coupon rate of 5.92 percent, with an option to re-price the rate at the end of the fifth year.
Proceeds from the fund raising activity will be used to partially finance the P111-billion programmed capital expenditures for the year.
The bonds will be listed with the Philippine Dealing & Exchange Corp. on April 27.
ALI plans to open four malls with 300,000 square meters of gross leasable area this year, three office buildings with a total 77,00 sqm GLA and three new hotels”•Seda Bacolod, Seda Bonifacio Global City and Seda Lio”•that will add 620 rooms to the company’s hotel portfolio.
Dy said the company remained on track with its target to hit P40 billion in net income by 2020.
“Given the continued economic growth in the country of between 6 percent and 7 percent GDP, we feel very positive we will be able to continue to introduce new projects in the market that would bring us closer to achieve our target of P40 billion net income by 2020,” Dy said.
