Just as it promises to launch more projects to ride the wave of market revival, property developer Ayala Land, Inc. (Ayala Land) is also beefing up its manpower tasked with maintaining its developed properties.
Jorge T. Marco, Ayala Land investor relations head, told Malaya Business Insight that the company’s current head count of employees detailed for asset management is only enough for buildings and properties that the company already have. Expansion of developments would require additional hands.
"We need people for administration and property management. The more projects going up, the more that we need additional people," said Marco.
"In every vertical project that we build, we handle the management of that building," he added.
Marco failed to reveal how many additional staff Ayala Land needs but stressed that as the company builds, it will hire more people.
Ayala Land chief finance officer Jaime Ysmael earlier said that the company is ramping up its project launch of residential projects to 12,000 from the original plan of 9,275 units "driven by strong take-up of units."
Ysmael noted that the industry has become "quite good" that it has led many developers to launch lots of projects.
"Everybody accelerated because of good take up," he said adding, "we have accelerated to a certain extent."
The increase however does not require additional investment by the company, said Ysmael, adding that the cashflow from existing projects is enough to cover for the needed cash of the expansion.
The expansion of manpower is also seen by some in the market as Ayala Land ’s way of keeping assets in shape as it eyes to fold properties into the real estate investment trust being cooked up in the financial market.
Ayala Land recently incorporated unit Ayala Land Commercial REIT Inc. (ALCRI) which will serve as the company’s vehicle into the REIT.
The P1.2 billion company "will own and select investment properties for long-term investment" which will include mature assets like shopping center and office assets currently under Ayala Land ’s portfolio, the company earlier said.
Ayala Land said these assets will have recurring income streams and stable occupancy rates.
Aside from folded assets, ALCRI will also look for acquisition opportunities of additional high quality assets that will further enhance and grow its portfolio.
Out of ALCRI’s authorized capital of P1.2 billion, P300 million was subscribed and paid up.
Ayala Land previously expressed its intention to participate in the REIT industry, eyeing to raise about $300 million in new funds.
Tapped as underwriters for the REIT were investment banks JPMorgan and UBS, for the foreign offering, while BPI Capital has been tapped for the local counterpart.
Source: Business Insight Malaya, 06 October 2010
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