ALLHC buys warehouse facility for P1.24 B

AyalaLand Logistics Holdings Corporation (ALLHC), the industrial arm of Ayala Land Inc., has acquired a warehouse facility in the Light Industry & Science Park III in Sto. Tomas, Batangas for P1.24 billion.

In a disclosure to the Philippine Stock Exchange, ALLHC said it acquired the ready-built facility and land through subsidiary Ecozone Power Management Inc. (EPMI) from Shen Long Property Management.

“This transaction increases ALLHC’s overall warehouse portfolio from 224,000 (square meters) gross leasable area (GLA) to 288,000 (sqm) GLA and it further strengthens ALLHC’s vision to be the leading real estate logistics and industrial estate developer in the country,” the firm said.

EPMI executed 2 separate deeds of sale for the acquisition of the ready-built facility and land.

The facility has a total area of 69,435 sqm with attached equipment to the building while the land where the facility stands has an area of 96,980 sqm.

The warehouse was priced at P578.66 million while the land cost ALLHC P658.57 million. Both are payable over five years and ALLHC will be using internally generated funds for the both the downpayment and the installment portion of the purchase price.

ALLHC reported a 117 percent jump in consolidated net income to P402 million for the first nine months 2021 on strong industrial lot sales.

The firm said its consolidated revenues grew 12 percent to P2.6 billion from P2.3 billion in the first nine months of 2020.

Revenues from industrial lot sales amounted to P1.1 billion, rising by 126 percent versus P511 million the previous year, as domestic demand for industrial lots continues.

Meanwhile, warehouse leasing revenues rose to P299 million, up 6 percent from the previous year’s post of P282 million, due to gross leasable area (GLA) completed in 2020 being taken up.

Renewed restrictions and rental assistance to tenants continued to weigh down commercial leasing operations, resulting to a decline in revenues from Tutuban Center and South Park Center by 16 percent to P311 million from last year’s P369 million.

Cushioning the impact is South Park Corporate Center’s office leasing operations with its 100 percent lease-out rate.

ALLHC President and CEO Maria Rowena M. Tomeldan

“We see signs of recovery in our business lines with industrial lot sales driving significant improvement in our overall performance this quarter,” said ALLHC President and CEO, Maria Rowena M. Tomeldan.

She noted that, “While the current business environment still proves to be challenging, we trust that our growing diversified portfolio of assets will keep ALLHC resilient amidst the ongoing crisis.”

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The article was originally published in Manila Bulletin and written by James A. Loyola.