AYALA LAND, Inc. (ALI) is teaming up with two companies headed by businessman Romeo G. Roxas for two projects in Aurora and Quezon province.
In a disclosure to the stock exchange on Tuesday, the listed property giant said it has signed a memorandum of understanding with Green Square Properties Corp. (GSPC) and Green Circle Properties and Resources, Inc. (GCPRI) for the establishment of a joint venture company.
ALI is set to own 51% of the joint venture (JV), while 49% will be split between GSPC and GCPRI.
The JV firm will be tasked to develop 27,852 hectares of land located in Dingalan, Aurora, and General Nakar in Quezon province.
“The long-term vision for the properties is to support the government’s initiative of developing the country’s eastern coast and promoting inclusive growth through the phased development of a master planned mixed-use estate, principally oriented towards tourism, commercial, residential, and institutional uses,” ALI said in a statement.
The company noted it will incorporate environmental and ecological programs in the development of the properties to conserve the forest and to protect its biodiversity.
One of the projects developed by GSPC and GCPRI is the 1,000-hectare Taal Volcano Ridge in Tagaytay.
ALI is known for developing mixed-use estates that house residential, office, commercial, and retail developments. So far, it has 25 such estates under its portfolio. Its 25th is the P53-billion Parklinks, a 35-hectare project along the C-5 corridor being developed with Lucio C. Tan, Sr.’s Eton Properties Philippines, Inc.
ALI booked a 17% increase in earnings in the first quarter of 2018 to P6.52 billion, supported by 17% revenue growth to P36.98 billion.
This year, the company is spending P111 billion in capital expenditures to help achieve its 2020 goal of having P40 billion in net income. For the first quarter alone, it has already rolled out P26.7 billion for residential developments, commercial leasing projects, estate development, and equity investments.
Shares in ALI climbed 3.05% or P1.25 to close at P42.25 each at the Philippine Stock Exchange on Tuesday. — Arra B. Francia