Residential Sales Drive Ayala Land Profit Higher in 2016

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AYALA LAND, Inc. (ALI) sustained a 19% growth in earnings last year, as residential and office sales continued to boost its property development business while its portfolio of leasable properties expands further.

In a statement issued on Wednesday, the listed company said its net income surged to P20.9 billion, following a 16% increase in consolidated revenues to P124.6 billion. It reported a profit of P17.6 billion from revenues totaling P107.2 billion in 2015.

In the fourth quarter alone, Ayala Land realized a 22% increase in net income to P5.8 billion from the P4.8 billion booked in the comparable 2015 period. Revenues likewise rose 22% to P39 billion from P32 billion.

“It’s another banner year for Ayala Land,” President and Chief Executive Officer Bernard Vincent O. Dy said during a media briefing in Makati City on Wednesday, citing the core businesses’ strong growth that pushed revenues to a record.

Ayala Land booked P79.2 billion in revenues from property development during the year. Residential and office sales drove the amount 17% higher from the 2015 level.

The property arm of the Ayala Group launched P61.5 billion worth of for-sale products under its residential brands Ayala Land Premier, Alveo, Avida, Amaia and BellaVita last year. Its residential sales accordingly rose 3% to P108 billion.

At the same time, Ayala Land grew its revenues from commercial leasing, 8% to P26.6 billion on the continued expansion of its portfolio of malls, offices, hotels and resorts across the Philippines.

Revenues from the mall portfolio jumped 12% to P15 billion, while the office folder increased 7% to P5.5 billion with the new contributions of UP Town Center in Quezon City and Bonifacio Stopover in Bonifacio Global City.

The hotels and resorts raked in flattish revenues at P6.1 billion alongside, following the initial operation of additional rooms.

Ayala Land had 1.62 million square meters (sq.m.) of gross leasable space across its shopping malls at end-December 2016, with the completion of Ayala Malls Legaspi and Ayala Malls South Park as well as the addition of the 55,920-sq.m. Tutuban Center in Manila to the portfolio.

The company has acquired a 51.36% stake in Prime Orion Philippines, Inc., the owner of Tutuban Center, in exchange for a P5.63-billion investment in the redevelopment of the property.

In the office segment, Ayala Land had 835,742 sq.m. in gross leasable space. The hotels and resorts had 2,027 rooms, including those in newly opened Casa Kalaw in the Lio estate development in El Nido, Palawan and Balay Kogon in Sicogon, Iloilo.

Contributions from the company’s new and emerging estates surged 36% to 40% last year. It has 20 estates across the country to date, including the newly launched One Ayala in the Makati Central Business District and the 17.5-hectare Gatewalk Central in Mandaue, Cebu.

ON TRACK TO 2020 GOAL
Following its strong performance last year, Ayala Land has taken another step toward its profit target of P40 billion for 2020.

“We continue to remain committed towards achieving that target,” Mr. Dy said, with the property developer having sustained double-digit increases in net income since unveiling its growth target back in 2014.

“Since then, we actually grew by 26%, in 2015 by 19%, and then again by 19% in 2016. So, from 2017 to 2020, we now have to grow by about 18% to be able to reach the 40 billion target. In fact, we will exceed a little bit,” Mr. Dy noted.

The residential business, in particular, should supposedly manage to survive the anticipated increase in borrowing costs and continue to serve as the company’s main growth engine going forward.

“It is true that they are actually projecting an increase in interest rates but nobody is expecting a huge increase and, if that’s the case, the property sector I think will remain buoyant. What is important is there is no sudden rise in interest rates,” Mr. Dy said.

The office segment should likewise remain afloat, Ayala Land Senior Vice-President and Group Head of Commercial Business Jose Emmanuel Jalandoni noted, citing the narrow vacancy rates in the office market.

“Looking now to 2017, we feel that the company continues to be well positioned to capitalize on the growth of the economy primarily because we have a landbank in place. We have close to 10,000 hectares — an increase of 1,000 hectares from a year ago,” Mr. Dy said.

P88-BILLION CAPEX
To sustain its growth, Ayala Land earmarked about P88 billion for capital expenditure this year, an increase from the P85.40 billion disbursed in 2016.

The company will spend P40.7 billion on residences, P11.8 billion on malls; P10.6 billion on land acquisition; P9.2 billion on offices; P5.5 billion on estates; P4.4 billion on hotels and resorts; and 4.9 billion on others.

The residential business accounts for bulk of the capital layout, with the launch of P100 billion worth of products for sale. It targets to introduce 19,000 units or almost double the 7,300 offered last year in projects worth P61.5 billion.

The company plans to complete seven shopping centers with a total gross leasable space of 224,000 sq.m. These include Ayala Malls The 30th, which opened in January in Pasig City; Ayala Malls Vertis North; Ayala Malls Feliz in Cainta, Rizal; and Ayala Malls One Bonifacio High Street in Taguig City.

Ayala Land also targets to bring online a total of 185,000 sq.m. of gross leasable office space in Vertis North, Circuit Makati and The 30th in Pasig within the year.

In addition, the company will open its largest Seda Hotel in Quezon City and first resort-type accommodation under the homegrown brand within its Lio estate in El Nido, Palawan, following the launch of Casa Kalaw in El Nido and Balay Kogon in Sicogon, Iloilo in 2016.

Ayala Land is looking to launch two more estate developments spanning 20 hectares in Davao and 35 hectares in Pasig City alongside.

“A bulk of that (capital spending) will be funded by internally generated cash, while P15 billion to P20 billion will be in debt — less than what we went out last year,” Ayala Land Treasurer and Deputy Chief Finance Officer Augusto Cesar D. Bengzon said.

Ayala Land tapped the fixed-income market four times in 2016, issuing corporate and homestarter bonds cumulatively worth P25 billion from a three-year shelf offering approved in March that year.

“We’re studying our options more closely. I think the bond market is our base case scenario,” Mr. Bengzon said, noting that Ayala Land may explore the potential of issuing corporate notes and other financing opportunities.

Shares in the company closed 40 centavos or 1.12% higher at P36 apiece on the Philippine Stock Exchange on Wednesday, bucking a general downtrend in the market.

Business World | February 16, 2017

Alveo Solinea, Ayala Land Cebu, Solinea Parc, Solinea Park
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‘Ayala Boy’ Makes Good

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When Jose Soberano III started his Cebu real estate company in 2003 with an affordable housing project in the northwestern Cebu town of Balamban, he gave out soft drinks and sandwiches to his potential customers.

It was his hands-on attempt to introduce Cebu Landmasters, Inc. (CLI) as a trusted brand in the housing development business.

It was also his way of attracting future homeowners, mostly employees of a shipbuilding company in that part of Cebu.

Twelve years later, CLI has become a leading local developer.

According to a 2016 survey by real estate services and advisory firm CBRE Philippines, CLI registered P2.18 billion in sales in 2016 and has over 33 developments in various stages of construction.

The company is not slowing down its expansion pace, recently announcing its investment of another P12 billion in 11 projects across the Visayas and Mindanao.

These projects will rise in Cebu, Iloilo, Bacolod, Dumaguete, Cagayan De Oro and Davao.

CLI also caters to different income segments to capture as big a slice as possible of the real estate market.

“We believe our growth story is the result of a keen understanding of the VisMin (Visayas and Mindanao) market, which is highly focused on getting the best values. We promise our homeowners hands-on service and we will deliver that. We will not be out of reach just because we have grown so much,” said Soberano.

Ayala boy

Soberano credits his 23 years of working with the Ayala group for honing his skills in running a business.

His experience included various stints with Ayala Investments, Bank of the Philippine Islands and Ayala Land Inc.

When it was decided that an Ayala Land subsidiary would be established in Cebu, Soberano became part of the pioneering group that built Cebu Holdings, Inc. (CHI) from the ground up.

Two of the major urban developments within Cebu City—Cebu Business Park and Cebu IT Park—were set up at the time when Soberano was with CHI.

He was CHI vice president until he left the company in 2000.

In 2003, he started his own company.

“I have always been an Ayala boy. I am grateful for my knowledge and the experiences I learned when I was with the company. I have deep respect for them and look up to them as big brothers,” said Soberano.

Based on its aggressive developments, Soberano is fast catching up with his “big brothers.”

Three of CLI projects are in two Ayala developments.

The 24-story Latitude Corporate Center Cebu will be completed in 2019 and is located within Cebu Business Park. The office-condominium venture Park Centrale and the mixed-used project 38 Park Avenue Cebu, on the other hand, are within the Cebu IT Park.

The 2016 CBRE Philippines survey noted that CLI was the top local condominium developer with an 11-percent share, second only to Ayala Land’s 17 percent.

Family business

Soberano is married to Maria Rosario “Marose” and father to Jose Franco, Joanna Marie, Janella Mae and Jose Gabriel.

Soberano, who was born and raised in Cebu, got his economics degree from the Ateneo De Manila University in 1976.

He then completed the Strategic Business Economics Program at the University of Asia and the Pacific.

Soberano also completed the Advanced Management Development Program in Real Estate at Harvard in July 2015.

Such an education has served him well in his business.

Meanwhile, Marose, an accountant, is the company’s executive vice president for finance.

Jose Franco is the senior vice president and chief operating officer while Joanna Marie is vice president and marketing director.

Janella Mae, who has a marketing background, will soon join the company.

Jose Gabriel is still finishing his degree at the Ateneo.

“Our parents let us pursue our careers outside of the company. After graduation, there was an unofficial four-year period where we gain experience from other fields. In my case, it took me seven years. They wanted the decision to join the company to come from us,” said Joanna Marie, who worked for a multinational company abroad prior to coming home to Cebu.

Jose Franco said they were particular with their brand names and the company’s reputation.

This is why in some residential developments, they sit as ex-officio members of the homeowners association.

“We make home ownership possible for every hardworking Filipino. When we build our projects, we always think that we will be delivering these projects to people we know,” said Jose Franco.

Jose Franco also said they consider the company’s 170 employees family members, a value that was started by his father.

“As family members, we talk and discuss our projects very openly. Decision making is swift and that is very important for a local developer like Cebu Landmasters,” he said.

By: Cris Evert B. Lato | Philippine Daily Inquirer | February 13, 2017

38 Park Avenue Cebu, Latitude Corporate Center Cebu
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Cebu Landmasters Eyes Expansion in VisMin Areas, to Issue IPO

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CEBU Landmasters Inc. (CLI), the acknowledged homegrown leader in housing development in Cebu, is allotting P12 billion for its 11 expansion projects this year.

The company is eyeing six new projects in Cebu, five in the Visayas and Mindanao, and two next-phase developments of existing projects, said Jose Soberano III, CLI president and CEO.

He said they plan to undertake developments in six cities in the VisMin area, all considered “hot spots”. These are Cebu, Cagayan de Oro, Bacolod, Iloilo, Dumaguete and Davao.

“General Santos and Bohol are also possibilities,” he added.

Soberano said his company does not accumulate much land bank.  “We develop property within a year of acquisition.”

He said, “We are looking at issuing an initial public offering in either March or April this year.”

The company is also eyeing making P4 billion in revenue this year and reaching P10 billion in revenues by 2020. CLI, run by Soberano and his family, started doing business in 2003.  At present, it has an 11-percent share of the housing market in Cebu, next only to Ayala Land with its 17-percent share.

“Today we are the No. 1 housing developer in Cebu. We see ourselves becoming the top land developer in the Visayas and Mindanao areas by 2020,” he said.

Soberano said the company’s business is 80 percent focused on housing and 20 percent on hotel, office lease and property management. About 30 percent of their buyers purchase condos. Many are overseas Filipino workers (OFWs) hailing from the province and nearby locations.

“Our company’s mission is to build affordable housing for the city’s residents,” said Maria Rosario Soberano, CLI EVP, and the family’s matriarch. “Our goal is to help them own homes close to the city’s centers, close to work, their church, city hospitals and grocery stores.”

Many of the company’s buyers are workers in the business-process outsourcing (BPO) industry, comprising 12 percent of the country’s BPO sector. About 30 percent of their buyers are OFWs.

Son Jose Franco B. Soberano, the company’s SVP and COO, said CLI has a work force of 170 employees.

“At the height of our construction activities last year, when we had eight projects in various stages of completion, we were indirectly employing 10,000 local workers, hired by our contractor partners, both based in Metro Manila and the province.”

“Our company believes in ‘building with you in mind’. We want to grow in a way that people can still touch us,” he said.

Daughter Joanna Marie B. Soberano, CLI vice president and marketing director, said a sales team that went to the Middle East recently was able to sell P300 million worth of housing development in five days, mostly to OFWs.

“We are also looking at Metro Manila-based people who hail from Mindanao,” she said.

 

By Efleda P. Campos | Business Mirror | February 9, 2017

Cebu Properties, cebureal estate, Metro Cebu
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Cranes Seen as Indicators of Cebu’sBbustling Property Sector

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MANY cranes in Cebu particularly in Mandaue and Cebu cities mean more Cebu real estate projects in these cities, which also mean better prospects for Cebu this year.

Donato Busa, immediate past president of the Mandaue Chamber of Commerce and Industry (MCCI), was referring to the construction equipment seen overhead in bustling parts of the Metro Cebu.

Busa said this is an indication of continued investor confidence in Cebu.

This was Busa’s reaction when asked about Cebu’s prospects for the year.

The business leader also said he was also excited about the upcoming business matching event hosted by the Bank of China (BOC) in Manila March of this year.

This initiative is seen to provide micro, small and medium-scale enterprises (MSME) in the Philippines access to a wider array of information, capital, technology, and markets.

Local traders see this as an opportunity to bring in capital investments and loans to spur the growth of MSMEs here.

Busa said the expected influx of more investors, particularly from China, was also a good sign that the country’s economy would expand further this year.

Melanie Ng, Cebu Chamber of Commerce and Industry president, for her part, also foresees better prospects for Cebu, but she said businesses should take action to make the year even more prosperous.

Ng said there is a need to improve logistics, solve infrastructure concerns, and work with government to make the economy conducive for businesses to thrive.

“Prospects are bright for this year for us. With the influx of more tourists and prospective investors, we expect to see growth in the local economy once the opportunities turn into projects and investments,” she said in a text message.

Last year, the economy grew by 6.8 percent, which is its fastest expansion in three years and was among the highest full-year growth rates in Asia in 2016.

Finance Secretary Carlos Dominguez III earlier projected the economy to expand by another 6.5 to 7 percent this year, owing to a healthy foreign exchange buffer, a strong banking system, as well as a young and educated workforce.

But Cebu Business Club (CBC) president Gordon Alan Joseph, however, believed that the country’s GDP may be reducing, which is common to many economies now due to global and local uncertainties.

“To my mind this raises the call to address the issues that are restricting GDP growth. We cannot be complacent,” he said.

Joseph called for the need to be aggressive in pushing for institutional reforms, earlier rallied by President Rodrigo Duterte in his 10-point socioeconomic agenda.

The CBC president pointed out that GDP growth cannot be achieved by a stroke of luck, but rather a properly executed strategy.

By: Victor Anthony V. Silva | Cebu Daily News | February 5th, 2017

Cebu Construction, Cebu Real Estate, metro cebu
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Cebu LandMasters to Invest US$241 Million in 2017 Expansion

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PHILIPPINES – Cebu Landmasters Inc (CLI), the top Cebu-based developer with the second highest market share of residential condominium units in Cebu, is projecting an investment amounting to Php12 billion (US$241 million) to finance its expansion plans in the Visayas and Mindanao this year.

CLI Chairman and Chief Executive Officer Jose R. Soberano III disclosed during a press briefing that the amount will finance new projects in the cities of Cebu, Davao, Cagayan de Oro, Bacolod, Iloilo and Dumaguete.

Ranked the leading developer based in Cebu by CBRE Philippines (Santos Knight Frank), Cebu Landmasters registered sales of Php2.18 billion in 2016 alone from its developments during the year.

Its current projects include residential condominiums and subdivisions in the city and province of Cebu, catering to all economic segments: office buildings and a mid-market residential condominium project in Cagayan de Oro.

In 2015, CLI also partnered with The Ascott Limited, the world’s leading international serviced residence operator-owner, to establish Citadines Cebu City, CLI’s first hotel venture, which will open by 2019 with 180 apartment units.

Soberano explained that the high growth rates in key VisMin cities, ranging from 8.7% to 10.7%, is driving the firm’s expansion into the cities of Iloilo, Dumaguete, Bacolod, Davao, and Cagayan de Oro in 2017.

CLI plans to bring its flagship economic housing brand called Casa Mira Cebu, priced between Php800,000 to Php1.5 million, to Iloilo, Dumaguete, Bacolod and another one in Cebu this year.

Cebu LandMasters Delivered 11,000 Units Since 2003

Prior to its successful higher-end residential Cebu condominium developments in Cebu IT Park and its environs, CLI built its track record on affordable and mid-cost housing delivered on time with attractive amenities and in highly accessible locations near the province’s booming industrial sites.

Since its founding in 2003, CLI has delivered about 11,101 units in various stages of construction encompassing over 25 projects. All finished projects are all sold out before its completion.

In Davao City, CLI is launching this quarter a mid-market condominium, priced from Php76,000 to Php110,000 / square meter in one bedroom and studio formats.

In 2013, the firm launched 600 units of similar sizes, features and price points in Cebu City that sold out in a record three months. In Cagayan de Oro City, over 500 units of this category sold out in less than a year.

Cebu Landmasters to Launch Mid-Market Subdivision in CDO

Having built a track record in Cagayan de Oro, Cebu Landmasters plans to launch in Q2 2017 its second development in CDO, a mid-market subdivision of 6.6 hectares.

Cebu Landmasters will also tap the more affluent market in Cebu City with 38 Park Avenue Cebu, a high-rise, top-class, New York-inspired residential condominium over a retail plaza and open park at the Cebu IT Park.

Soberano also announced more developments in Cebu, including the start of new phases of existing mid-end and high-end residential condos and the launch of a mixed-use project in AS Fortuna in Mandaue City, Cebu.

“We believe our growth story is the result of a keen understanding of the VisMin market, which is highly focused on getting the best values. In all our projects across all segments, the values arising from a good location, timely delivery and competitive pricing have helped us sell out our projects quickly. In fact, all our projects have sold out before completion,” Soberano said. – BusinessNewsAsia.com

By Business News Asia – February 2, 2017

Casa Mira Cebu, Cebu Casa Mira
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Contempo Property Holdings: Driven by Quality and Excellence

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IN its journey towards their vision of developing communities of good neighbors, homegrown real estate firm, Contempo Property Holdings, Inc. continues to thrive to make significant differences to Filipino families through pioneering initiatives to ensure quality of life.

“At Contempo, our mission and vision is to provide every Filipino their own home,” shared CPHI Founder and CEO Beverly M. Dayanan.

Contempo is driven by the dreams and aspirations of mid-income families to own an ideal home in an accessible location that provides security and facilities for leisure, recreation, wellness and social interaction. Dayanan made this her life’s purpose offering not only quality and affordable homes and easy payment schemes, but also nurturing safe and vibrant neighborhoods.

Bamboo Bay Cebu Community, Contempo’s flagship project, is a 3-tower Asian-contemporary residential condominium in Subangdaku, Mandaue. It encapsulates all the values that aim to enhance lifestyles for people aspiring to provide their families an ideal space to live, for the children to grow up in. It features innovations and green practices such as integration of green edible garden landscaping where the community grows its own food, and a total “No Smoking” policy, providing residents with a haven for health and wellness.

Just last January 18, Contempo marked the topping-off of its third and last tower which houses 268 condominium units. It broke ground last September 2015 and is scheduled for completion in the last quarter of this year.

With the last beam placed on the third building, Contempo is strengthening its commitment in on-time delivery of quality and affordable homes, and bolsters its position as a key player in the real estate industry.

Award-winning Developer

Contempo, headed by its dynamic President and CEO Beverly M. Dayanan, has won a number of international awards from prestigious organizations and award-giving bodies.

The Business Initiative Directions (BID) World Quality Commitment (WQC) Award is given to companies, organizations and institutions that are dedicated to become a pinnacle of excellence in the industries they are involved in. They are identified based on excellence in leadership and management, quality and productivity, business prestige and brands, and technology, innovation and growth.

Receiving the WQC trophy represents the recognition that Contempo Property Holdings, Inc. follows the path of excellence, promoting the ideals of the Social and Business Intelligence, the pursuit of continuous improvement, effectiveness and productivity.

In November 2016, Beverly Dayanan was awarded as one of the Asia Corporate Excellence and Sustainability Awards (ACES) 2016 Outstanding Leaders in Asia. Her personal and entrepreneurial goal to provide every Filipino their own home and her philosophy to serve others has led her to become one of the most inspiring, successful, and respected real estate business leaders of today.

Contempo’s most recent award is the Asia Pacific Entrepreneurship Awards (APEA) 2016 Gold Award for Property Development Industry. The APEA is a regional award for outstanding entrepreneurship. It seeks strong-willed men and women who have shown excellence and tenacity in developing successful businesses within the region. /PR

Cebu Daily News | January 30, 2017

Bamboo Bay Cebu, Cebu Bamboo Bay, Contempo Properties
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Cebu Real Estate Properties in the Philippines

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