AYALA LAND, Inc. (ALI) has started construction of its P7.4-billion residential condominium in Mandaluyong City, following the strong sales seen from its first project in the area.
In a statement posted on its website, the listed property developer said that its midrange brand, Avida Land Corp., has broken ground for Avida Towers Verge earlier this month. The three-tower project will stand along Reliance Street corner Mayflower Street, Mandaluyong City.
The first tower will consist of 34 floors housing a total of 1,020 residential units, ranging from junior one-bedroom and one-bedroom layouts. The units span 22-24 square meters (sq.m.) and 34-36 sq.m priced at P4.2-4.4 million and P6.7-7.7 million, respectively.
Avida Land is targeting young professionals working in Makati, Bonifacio Global City, and Ortigas for the Verge project.
Aside from residential units, Verge will also offer seven commercial units for lease.
Avida Land is currently turning over units for its first project in the area, Avida Towers Centera. The company said it has almost sold out all 2,526 residential units in the four-tower project,
“Most of them are end-users, of which 54% are 35 years old and below. They were from Mandaluyong and all over Metro Manila. The market is composed mainly of young working millennials looking for units closer to their places of work,” Avida Land Vice-President for Project and Strategic Management Group Apollo B. Tanco said in a statement.
Mr. Tanco noted that prices of Centera units have risen by 40% since its launch, commanding rates of P139,000 per sq.m. by the time it closed sales for the fourth tower.
“Mandaluyong is a prime real estate hotspot…While prices of condo units significantly rise in the area over time, it continues to be at a mid-level price range compared to other cities in the country,” Mr. Tanco said, citing a Colliers International study saying that Mandaluyong is the top condominium market in terms of unit take-up in the past two years.
The company has also leased out more than 70% of the 32 retail units located on the first and second floors.
ALI plans to launch P130 billion worth of projects this year, including two estates in Tarlac and Batangas. It has also committed to spend P130 billion in capital expenditures to support the rollout of residential, office, commercial, and retail developments this year.
The company will be issuing P8 billion in fixed rate bonds to finance its aggressive spending plan, in addition to bank debts and internally generated funds.
ALI’s net income climbed 16% to P29.2 billion in 2018, as revenues also surged 17% to P166.25 billion.
Shares in ALI jumped 1.48% or 65 centavos to close at P44.50 each at the stock exchange on Tuesday. — Arra B. Francia