Alveo Land Corp. on Tuesday said it will launch some P25 billion worth of projects in the first half of the year, and add some 5,000 office and residential units. The Ayala Land Inc. unit also said it expects some P40 billion in sales this year.
Robert Lao, Alveo president, said this year’s sales target exceeds last year’s P36 billion, a record high for the company. It also launched a total of P33 billion worth of projects.
“We offer a wide range of residential, office and leisure developments across the country to satisfy the needs of our growing market. This puts us in the best position to take full advantage of the country’s economic growth, as we continue to be present in all key CBDs [central business districts] in Metro Manila,” Lao said in a briefing. Alveo, the Ayala Land unit that develops projects for the upper- and middle- income segment, may grow about 20 percent every year in the long term, Lao said.
“Our base right now is big, so we can’t expect to reach our previous growth rate of between 50 percent [and] 60 percent,” Lao said. Alveo, he said, will be aggressive in introducing more key developments throughout the country, averaging about 10 project launches per year.
For the first half of 2015 alone, launches would amount to at least P25 billion worth of new inventory in Makati City, Bonifacio Global City (BGC) in Taguig and in Quezon City.
“We have a growing middle class exercising their spending power, boosted by higher consumer confidence; so we are sharpening our focus on providing genuine, consumer-relevant, real-estate innovations that will truly make a mark in the industry.”
Jenylle Tupaz, Alveo project development head, said some 15 percent of its revenues will come from horizontal projects, 24 percent from office space and 55 percent from vertical projects.
“There will be higher contribution from horizontal and office sales in the future,” Tupaz said.
Alveo was able to post a 21-percent average growth rate during the last three years. Lao said the market that can buy its products—sold between P150,000 and P200,000 per square meter—has been expanding.
“Actually, that’s one of the beneficiaries of economic growth. They are the SMEs [small and medium enterprises], entrepreneurs. So on an economic growth of 6 percent to 7 percent per year, they’re the first to benefit. And it will continue [in the coming years], I don’t see any reason for that growth to taper,” Lao said.
Last year the company launched nine projects. In the BGC, it launched the Park Triangle Corporate Plaza and Verve Residences Tower Two. It also launched projects in Arca South in the former site of FTI complex in Taguig; Circuit Makati in the former Santa Ana racetrack in Makati; Cavite; and Quezon City. Outside Metro Manila, Alveo has also built residential, commercial, leisure and office developments in Laguna, Cavite, Pampanga, Cebu and Davao, among others.