The company is in the process of selecting assets for its
minimum $300million foray into real estate investment trusts (REIT), a new investment vehicle.
"We have already upped our target launching from an initial 9,275 units to 12,000," Jaime E. Ysmael, Ayala Land senior vice president and chief finance officer, told reporters at the sidelines of a REIT forum in Makati. "Effectively, we are trending towards a higher launch target this year."
"There is a high sales takeup. [The bulk is still from]
domestic [buyers] but the overseas Filipinos are there," Mr. Ysmael added.
Last week, Ayala Land said it had already sold about 6,000 units in the first half.
Ayala Land operates under three major brands Ayala
Land Premier for the highend segment, Alveo Land for the middleincome segment, and Avida for the "affordable" market. Early this year, it launched economic housing brand Amaia.
Profits of the property giant jumped by a third to P1.2 billion in the first quarter. The latest figure, which marked the fifth consecutive quarter of profit growth for the firm, was 32% higher than the P907 million net income recorded in the same period last year.
Meanwhile, Ayala Land is continuously looking at businesses to be included in a REIT company to be formed soon, Mr. Ysmael said.
"Most likely hotels will not be included. Most likely it would retail and office spaces," he said.
Ayala Land has appointed JP Morgan and BPI Capital Corp. as financial advisers for the venture into the REIT, which allows companies to use pooled capital of investors to buy and manage income generating properties or mortgage loans.
"[Proceeds] will be reinvested again to further accelerate the expansion of malls and offices and probably land banking to support other businesses," Mr. Ysmael said.
Shares in Ayala Land which launched the P4 Billion West Tower condominium project in Bonifacio Global City last week rose to P14.94 apiece yesterday from P14.78 on Monday.
Source: Business News Online
By: Neil Jerome C. Morales