AYALA LAND, Inc. (ALI) looks to finalize its agreement to develop almost 28,000 hectares of land in the provinces of Aurora and Quezon within the year.

“Last year we signed an MoU (memorandum of understanding) so it’s only [now] that we’re finalizing the JV (joint venture) agreement on that, so we’re hopeful that we can finalize within the year,” ALI Senior Vice-President Jose Emmanuel H. Jalandoni said in a podcast from an August briefing posted on the company’s website.

The listed property developer in May 2018 signed an MoU with businessman Romeo G. Roxas’s Green Square Properties Corp. (GSPC) and Green Circle Properties and Resources, Inc. (GCPRI) for the establishment of a joint venture firm.

ALI will hold majority of the partnership at 51%, while GSPC and GCPRI will collectively own 49%.

The company will then develop 27,852 hectares of land in Dingalan, Aurora and General Nakar, Quezon.

ALI earlier said the project will house tourism, commercial, residential, and institutional components. It will also incorporate environmental and ecological programs to conserve the forest in the area, while also protecting its biodiversity.

Once developed, the development will be added to ALI’s network of 26 estates across the country.

Its newest estate is the 526-hectare Habini Bay in Misamis Oriental, which is being developed in partnership with parent Ayala Corp. The project will consist of an industrial park, seaport, provincial bus terminal, technical school, and a new municipal government center that will complement the planned residential and commercial developments.

ALI generated a net income of P7.8 billion in the second quarter of 2019, 10.4% higher year on year, amid flattish growth in revenues at P43.5 billion.

For the first half, the company’s net income was up 12% to P15.2 billion, on the back of a 4% increase in revenues to P83.2 billion.

ALI is scheduled to issue P5 billion in fixed rate bonds with a tenor of five years this September, as part of its commitment to spend P130 billion in capital expenditures for the year.

The capex will support the construction of existing projects as well as the launch of P130 billion worth of new projects within the year.

Earlier this year, the company also raised P8 billion from the issuance of seven-year bonds with an annual interest rate of 6.369%. This was the first tranche of ALI’s P50-billion shelf registration program filed with the Securities and Exchange Commission.

Shares in ALI were down 0.51% or 25 centavos to close at P48.90 each at the stock exchange last Friday. — Arra B. Francia