October 28, 2013

Ayala Land to bid for large reclamation project

BusinessWorld today reported that Ayala land (ALI, Buy) intends to submit a counter-proposal for a 300-hectare reclamation project being auctioned out by the Pasay city government. The project is an unsolicited proposal by the SM group which it intends to finance and complete within seven years from approval.

Our take: The winner of the proposed project can benefit from a big boost to its land bank and will ensure long-term profitability. To put it in context, the proposed site is approximately the original size of Bonifacio Global City. Thus, it can be a new CBD and its prospects should be enhanced by its proximity to the Pagcor Entertainment City, the Mall of Asia complex and the completion of the NAIA Expressway. - WealthSec