MANILA, Philippines - Property giant Ayala Land Inc. is spending up to P5 billion this year for a mixed-use property development in Laguna, south of Metro Manila.

Ayala Land president Antonino Aquino said the company is expanding its retail, office building, and residential projects in Nuvali, a 1,750-hectare development in Canlubang, Laguna.

Aquino said Ayala Land will add another 10,000 square meters of retail space in the area to complement its existing 2,000-sqm project called Solenad.

Aside from this, the company will also put up a new office building to cater to business process outsourcing companies.

Ayala Land's upscale property arm, meanwhile, will launch its third residential project in Nuvali called Santierra.

The project covers 77 hectares, offering a total of 580 residential lots.

Phase 1 of Santierra consists of 125 lots, of which 108 have been sold over the weekend.

According to Ayala Land senior vice president Rex Mendoza, Santierra has been enjoying strong demand from investors, signifying the recovery of the property sector.

So far, Ayala Land has developed about 30% of the total land area of Nuvali, which is said to be 8 times the size of the Makati business district.

Nuvali is a joint venture project between the Ayala group and the Yulo family.