THE Ayala Group of Companies is earmarking P5 billion for capital expenditures (capex) this year, to finance another set of projects for Cebu’s twin business districts-Cebu Business Park (CBP) and Asiatown I.T Park.
AyalaLand Inc. (ALI) president and chief executive officer Antonino Aquino, during the company’s stockholders meeting yesterday, said the approximate capex is meant to build more real estate projects such as residential and leasing spaces for the business process outsourcing (BPO) and information technology (IT) offices.
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A portion of the capex will also be used for the two-hectare expansion at the Asiatown I.T Park.
Cebu Holdings Inc. (CHI) president Francis Monera told reporters they plan to build a high-rise residential development in the area and are in talks with the lot owners. They hope to start the development by the end of this year.
Monera noted that the company’s continued investment in Cebu was buoyed by the fast take-up of most of its projects here; this he attributed to Cebu’s “twin-win” industries, tourism and business process outsourcing, and the surge of overseas remittances.
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Last year, CHI partnered with ALI subsidiaries to bring in a wider range of options for customers.
“We are building a community here. We are trying to complete the ‘live, work, play’ concept in the twin business districts of Cebu,” Monera said.
ALI brought to Cebu its three residential brands: Avida Towers Cebu at the Asiatown IT Park and Alveo and Ayala Land Premier at the CBP.
Monera reported that the Avida Towers, launched in June last year, experienced fast take-up prompting them to accelerate the launch of its second tower in less than three months.
The proclamation of the 50-hectare CBP as a Peza-accredited economic zone last year will also pave the way for more developments. Monera said that five construction projects, which include the Alveo and Ayala Land Premier, are underway while three more projects have been submitted for review.
The expansion of the Ayala Center Cebu, which is the main revenue source of the company, is also expected to accelerate growth at CBP.
Last year, the mall registered total revenues of P677 million due to higher occupancy rate and sales growth. It ended the year with 97 percent lease occupancy.
CHI is a publicly listed company engaged in real property ownership, development, marketing and management. It is an affiliate company of ALI.
According to Monera, the year 2010 was a record year of business growth in CHI’s 22-year history. The company posted an all-time high of P406 million in consolidated net income, which is 34 percent higher than in 2009. Its consolidated revenues registered a 12 percent improvement at P1.4 billion.
Of the total revenue, 58 percent was derived from retail and office leasing, 32 percent from the sale of residential and commercial lots, and 10 percent from the interest and other income.
CHI’s subsidiary Cebu Property Ventures and Development Corp. (CPVDC), on the other hand, generated total revenues of P263 million last year, which is 21 percent higher than in 2009. Its net income also grew by 43 percent at P164.4 million last year.
Contributing to revenues are lot sales at the Asiatown IT Park, as well as the leasing income from eOffice, eBloc Tower and the retail center, The Walk.
Monera said the company foresees a growing demand for leasable spaces with the improvement of Cebu’s status as a “mature, emerged BPO destination.”