MANILA — Ayala Land Inc. (ALI) has earmarked a record PHP111 billion for capital expenditures (capex) in 2018 and is ready to launch PHP125 billion worth of projects, optimistic about the continued growth of the property market.
ALI Chief Finance Officer and Treasurer Augusto “Toti” Bengzon told reporters that PHP47.4 billion, or 43 percent of the projected capex, will be allotted for the residential segment; PHP18.7 billion, or 17 percent, for malls; and PHP14 billion, or 12 percent, for land acquisition.
The company will set aside the remaining amount for malls, offices, hotels and resorts and estate development segments, as well as for capital, services, and other investments.
ALI President and Chief Executive Officer Bernard Vincent Dy said, “(this year’s) capex is at PHP111 billion, which is significantly higher than we have been spending year-on-year the last four or five years. So this will gonna be another all-time high in terms of capex, that’s an indication of the opportunities that we see, optimism on what we see in the market.”
Dy said the company is also targeting to roll out PHP125 billion worth of residential, office and leasing projects this year.
The property giant booked a record profit of PHP25.3 billion in 2017, up 21 percent from PHP20.9 billion the previous year, on the back of resurgence of property sales and strong leasing growth.
“Sound macroeconomic fundamentals continue to support the property sector. So we believe we are well positioned to benefit from the strength of our economy,” he said. (Leslie Gatpolintan/PNA)
