Ayala Land mulls options for health care business
By Arra B. Francia, Reporter
AYALA LAND, Inc. (ALI) is studying options on how to move forward with its hospital business, following reports it is selling its health care brand QualiMed.
“I think we’re currently studying the options,” ALI Chief Finance Officer Augusto Cesar D. Bengzon told reporters in Makati last week when asked if they plan to unload the hospital business.
The QualiMed brand is ALI’s partnership with Mercado General Hospital, Inc. It operates under three formats, namely mall-based multi-specialty clinics, stand-alone ambulatory or day surgery centers, and full-service hospitals.
The two companies launched the Qualimed brand last 2014, with a commitment to invest P5 billion in the next five years to build a chain of hospitals and satellite clinics, and also as a way for ALI to complete product offerings in its township developments.
Asked how this would affect the QualiMed branches already open in ALI’s estates, Mr. Bengzon said there will be no material changes.
“Nandun naman sila sa Atria, sa San Jose del Monte, Altaraza, then sa Nuvali. They can continue to locate in our estates, whether we own it or not. Because our estate is attractive to locators, since you already have a self-contained community,” he explained.
The ALI executive also noted the hospital business comprises less than 5% of the total asset size of ALI, so its contribution to revenues is negligible.
“Today it’s also negligible, the contribution. So I don’t see it as having a significant impact on our 2020 targets,” he said.
The property giant is currently trailing a “2020-40 plan,” which was unveiled in 2014. Under the program, ALI projects to deliver a net income of P40 billion by 2020, or a 20% annual average growth rate from 2013 until 2020. This comes on the back of its aggressive expansion of residential projects, office developments, hotel and resorts, and the optimization of the use of land bank.
The potential divestment from QualiMed follows ALI’s recent exit from convenience store chain FamilyMart, in favor of Davao-based businessman Dennis A. Uy.
ALI, together with SSI Group, Inc. and two other foreign partners, announced its sale of FamilyMart to Mr. Uy last October, who in turn said it would complement his oil and fuel business through Phoenix Petroleum Philippines, Inc.
“In the case of FamilyMart, we think the brand can grow more under Phoenix. I guess the synergy for them is the 500 gas stations,” Mr. Bengzon said, referring to Phoenix Petroleum’s 518 fuel stations nationwide.
The hospital and convenience stores are not part of what ALI considers to be its core business segments.
ALI generated a net income of P17.8 billion in the nine months ending September, 18% higher year on year as it continues the expansion of its residential and office properties. Revenues, meanwhile, grew 16% to P98.9 billion for the nine-month period.
