LISTED property giant Ayala Land, Inc. (ALI) has disbursed over P2.7 billion raised from last year’s sale of 75 million shares in its real estate investment trust unit, AREIT, Inc., using the proceeds to fund hotel and residential developments.
The company disbursed P1.44 billion to New World Hotel, a five-star property in Makati City that ALI acquired in July, it said in a regulatory filing on Thursday.
About P699.21 million was allocated to Arbor Lanes, a five-tower mid-rise development under ALI’s luxury residential brand, Ayala Land Premier. The property is located within the 74-hectare ARCA South in Taguig City.
ALI also disbursed P559.42 million to the 276-room Mandarin Oriental. The project, located within Ayala Triangle Gardens in Makati City, is slated to open by 2026.
In September last year, the company raised P2.72 billion from the block sale of AREIT shares at P36.20 apiece under a placement agreement with UBS AG Singapore Branch and BPI Capital Corp.
Last month, ALI announced plans to launch P57 billion worth of property development projects in the second half of the year, covering the completion of upgrades to its malls and hotels.
Around two-thirds of the planned launches will be under the premium segment, while the remaining one-third will be part of the core segment, ALI President and Chief Executive Officer Anna Ma. Margarita Bautista-Dy said earlier.
ALI’s hospitality arm, Ayala Land Hospitality, also noted plans to invest $500 million (around P28.63 billion) over the next five years to increase its room capacity to 8,000.
The company recorded an 8% increase in first-half net income to P14.2 billion, while its property development revenue rose slightly by 0.77% to P52.3 billion, driven by strong commercial and industrial lot sales and bookings in its premium residential segment.
At the local bourse on Thursday, ALI shares declined by 2.26% or 60 centavos to close at P26 apiece, while AREIT were up by 0.23%, or 10 centavos, to close at P43.45 each. — Beatriz Marie D. Cruz