MANILA, Philippines - Ayala Land Inc. is spending P20 billion over the next 3 to 5 years to transform a commercial area in the country's premier financial district into a mixed-use complex.

The property giant is redeveloping the Ayala Center in Makati City, its third major redevelopment project since the '60s.

The project will involve constructing 2 office buildings, a mall, a hotel and a high-end residential condominium, Ayala Land president Antonino Aquino said on Tuesday.

"Wholly, it is going to be one of the most ambitious projects that Ayala Land will be doing," he remarked.

Aquino noted that the new undertaking would be financed through a combination of internal cash and "some borrowings that we have previously arranged."

Ayala Land has launched the project's residential component, the 3-tower Park Terraces.

Park Terraces will offer a total of 370 studio, 2-bedroom and 3-bedroom units, ranging from 37 to 44 square meters in area, and selling for P5 million to P40 million.

Ayala Land chairman Fernando Zobel de Ayala is confident that Park Terraces will enjoy strong demand from buyers, just like the recently launched Santierra, the company's upscale residential project in Nuvali in Canlubang, Laguna.

"We had the record launch of Santierra, where we posted P1 billion in sales, the highest level in a single day," Zobel said. "I am confident that Park Terraces will exceed that volume."

Zobel said they are banking on the low interest rate environment, the continued inflow of remittances from overseas Filipinos and the healthy liquidity of banks to drive sales this year.

He added that a successful presidential election as well as smooth transition of government would help a lot.

"We normally see 3 consecutive quarters of growth [after elections]."

Zobel said their residential sales could grow almost 4-fold from 2,500 to 9,200 units this year.