Ayala Land adds P65-B for Makati redevelopment
MANILA, Philippines - Ayala Land Inc. is investing an additional P65 billion to continue the development of Makati City in the next five years.
The fresh investment will add to Ayala Land's P60 billion investment in 2012 to establish six districts, namely Ayala Center, Makati Central Business District, Ayala Triangle Center, Circuit Makati, McKinley Exchange, and City Gate.
Out of the P65 billion total investment, P15 billion will be allocated to the phase 2 redevelopment of Ayala Center; P20 billion for Circuit; P20 billion for Ayala Triangle; and P10 billion for City Gate.
The redevelopment will involve an additional 800,000 square meters of retail and office spaces, five new hotels, and 3,700 more residential units in Makati in the next five years.
“This is an incremental P65 billion investment that will take us to 2020,” Ayala Land president and chief executive officer Bobby Dy said in a press briefing on Thursday.
Dy highlighted the importance of constantly redeveloping and reinventing Makati to strengthen its status as the country’s business and lifestyle hub.
“Makati is really our crown jewel and it’s really our commitment to ensure that Makati continues to be relevant and continues to be premiere business district in the country,” he said.
Dy noted that its projects in Makati contribute about 30 percent to its total net income.
He said the firm will use internally generated funds and may tap the capital and debt markets to finance the additional investment.
Ayala Land is also looking to open its version of the Bonifacio High Street in Circuit Makati, to be called Circuit Lane, by April 2015.
A 1,500-seater CCP-quality theater, a mall, hotel, and office spaces will also be launched in Circuit between 2016 and 2017.
Circuit, which is located near Buendia and South Avenue, will be Ayala Land’s new entertainment district in Makati.
City Gate, on the other hand, is envisioned as the city's gateway and creative hub to cater to the young crowd.
City Gate is located where Ayala Avenue meets Buendia and spans three blocks from the Convergys building to Aegis People Support Center.
The new development will house office buildings, retail space, a 2,600-sqm civic space, and a 312-room Seda Hotel.
The hotel, which will also offer serviced apartments, is expected to open either late 2018 or early 2019 and will create around 180 jobs. It is the first hotel to rise in the area.
Aside from Seda, four new hotels are expected to rise in Makati in the next five to six years, including the new Mandarin Hotel that is expected to open in 2020.
The brand new five-star, 275-room Mandarin Hotel will be built at the northern tip of Ayala Triangle.
Around 80,000 sqm of prime grade office space will also be constructed at the Triangle and will ready for turn over by 2018.
“While this development is ongoing, the Triangle will remain open, pedestrian access will be unimpaired, and joggers will continue to be welcomed,” said Meean Dy, vice president and group head of Ayala Land’s Strategic Landbank Management Group.
Two new hotels, meanwhile, will be located in Ayala Center, which will undergo redevelopment to make space for public transit terminal, more retail space, and a business convention center.
InterCon to close its doors?
“A business convention center is something we have always wanted to do in the Makati CBD, and now we have the perfect opportunity to do it. The site is large enough, it’s right at the heart of the CBD, and has the perfect transit access, and by then, we will have 4,000 hotel rooms, all within a 10-minute walk,” said Dy.
The 10,000 sqm convention center is being eyed to rise at the corner of Ayala Avenue and EDSA, the area where InterContinental Manila currently sits.
“We’ll maybe start developing that in the next five years…A city is never complete, it evolves, there are changes and new things happen. But I think this is what the city needs today so this is what we are working on,” said Dy.
According to Dy, the five-star hotel will likely be transferred to another location in the next five years, noting that plans have not yet been finalized.
“Just like what we did in Mandarin, we found a home from them and one that is actually close to them. So we’re not discounting the possibility that we’ll do the same for InterCon. We don’t know exactly where yet, because there are a lot of options,” she said.
The InterCon opened in 1969 and is one of the oldest establishments in Makati.
The Mandarin Hotel, which opened in 1976, is set to close its doors in September.
Dy said Ayala Land has yet to finalize development plans for the land where Mandarin currently sits, at the corner of Makati Avenue and Paseo de Roxas.