Ayala Land finds joint ventures the way to expand nationwide

Published October 15, 2013 6:31pm

Ayala Land Inc. on Tuesday said it is on track in pursuing joint ventures as a way of feeding expansion plans and boosting its presence in many parts of the Philippines.

In an e-mailed statement, Bernard Vincent Dy, Ayala Land chief operating officer, noted the partnerships and joint ventures give the property giant the ability expansion expand at a faster pace without dipping too much on capital resources and at the same time spreading the risk inherent in property development.

“If you look at our history, a lot of our expansion was mostly done through partnerships, starting with the Madrigals for the development of Ayala Alabang; then with the Yulo family for Nuvali; the Florendos for Abreeza in Davao; and with the Campos group and BCDA for Bonifacio Global City,” Dy said.

Ayala Land also tapped the Cua family in developing the Circuit Makati, the Lacson family over Ayala North Point in Negros Occidental, and the Pison group over the Atria project in Iloilo City.

Recent partnerships were forged with the SSI Group for a department store venture, with the Tantoco family for the Family Mart convenience stores, with Puregold for putting up supermarkets, and with the Mercado family for healthcare business.

The company is now negotiating over other joint venture deals as Ayala Land received many offers to go into partnerships, Dy said.

The joint venture approach is a good way for a property company to expand, said Jaime Ysmael, Ayala Land chief finance officer

“With partnerships, we are able to optimize the use of capital and at the same time reduce risk, allowing us to expand in a quicker way while minimizing the strain on our balance sheet,” Ysmael added. – VS, GMA News

Tags: jointventures, ayalaland, propertydevelopment