Ayala Land will team with conglomerate Aboitiz group to develop a commercial district on the central Philippine island of Cebu, part of a broader investment push outside its home base of Manila.
The duo will manage the 10 billion Philippine peso ($215 million) project through a joint venture. The development will take place in the city of Mandaue, according to a filing by Ayala with the Philippine Stock Exchange. Its first phase will consist of office buildings, commercial facilities and residences on 17.5 hectares, targeted for completion in 2019.
Though Cebu is known mainly as a resort region, it has become a hotbed of call centers and other outsourced businesses in recent years. Other companies are moving in as well, helping drive up income levels in the area. SM Group, the Philippines’ largest retail group, is already involved in the construction of a large-scale commercial facility on the island.
Ayala Land, a core member of conglomerate Ayala Corp., has a track record of developing business districts in the Manila area. It has expanded into housing development in recent years as the Philippines’ middle class has grown.
