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Thursday, February 20, 2025

ALI sees profit rising twice faster than GDP

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Property developer Ayala Land Inc. (ALI) expects to grow its profit twice the country’s gross domestic product (GDP) growth over the next five years, chief finance officer Augusto Bengzon said.

Bengzon said the group remains positive about overall business, particularly its residential, commercial and hospitality.

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He also confirmed reports that ALI offered to buy a 1.1-hectare land donated to the Asian Institute of Management based on current market price.

ALI group head for leasing and hospitality Mariana Beatriz Zobel de Ayala told reporters the group continues to expand its mall, office and hotel businesses.

She said about 700,000 square meters of commercial space are under planning and construction.

ALI will open 78,000 sq. m. of retail space, the phase 1 of Vermosa in Cavite, Park Triangle in Bonifacio Global City and first phases of Solenad 4 and Arca South this year.

“We have a lot of conviction in the Filipino consumer, and part of that is because we saw 10-percent growth in foot traffic last year. That for us was quite promising,” Zobel de Ayala said.

She said the group’s newly-opened malls like One Ayala and Manila Bay were also doing well.

She said the ongoing mall renovations of Ayala Center Cebu, Trinoma and Greenbelt were about 40-percent to 60-percent completed.

“The renovations are on track and are creating a lot of excitement in our tenants,” Zobel de Ayala said.

She said that the group’s average lease-out rate remained steady at 92 percent despite a higher industry vacancy rate of 20 percent.

Its newly-opened office projects, Ayala South Tower and another one in Park Triangle are now between 60-percent to 70-percent leased out.

Zobel de Ayala said ALI would continue to open new hotels and renovate existing leisure developments.

Five hotels are under renovation including Holiday Inn, Seda BGC, Seda Abreeza, Seda Cagayan de Oro and Lagen Resort in Palawan

Zobel de Ayala said these renovations would enable the company to increase its rate by 10 percent to 15 percent.

“I’m excited about the idea of opening up more hotels in regional market to bring in tourism,” she said.

She said 2,000 new hotel keys were in the pipeline, including the 280-room Mandarin Hotel which would open by 2026.

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