Ayala Land offers to buy AIM property as part of expansion plans

It’s no secret that Ayala Land, Incorporated (ALI) has big plans for 2025, with renovations and planned developments already disclosed and underway.

But it looks like the listed property giant has something more up its sleeve as it eyes buying back the land it donated to the Asian Institute of Management (AIM).

“Ayala Land has offered to acquire the 1.1-hectare land parcel of the [AIM] in the Makati CBD at current market prices,” ALI chief financial officer Augusto Bengzon said on Friday, January 31.

“Should ongoing negotiations result in a definitive agreement, appropriate disclosures will be made to regulators,” he added.

Ayala Land donated the property upon the prodding of Washington SyCip, a Filipino-Chinese business tycoon who co-founded local accounting firm SGV & Co. Meanwhile, funding for the building and dormitory was said to have been sourced from Eugenio Lopez, the business magnate behind ABS-CBN Corporation.

Sycip was the man in charge of developing the MBA program at AIM that has now expanded to offer a variety of academic programs — from non-degree tracks to doctorate degree programs.

The company did not elaborate on what it plans to do with the property. The possibilities are endless, given its location right in front of Greenbelt 1 along Paseo de Roxas. It’s also a stone throw’s away from Washington Sycip Park and Legazpi Active Park.

Ayala Land has had positive results so far across its retail, residential, and office leasing business.

Mariana Beatriz Zobel de Ayala, group head of leasing and hospitality at ALI, said they have “a lot of conviction in the market.” For instance, about 700,000 square meters of mall space are under construction or development.

Meanwhile, the company also said last year that its residential sales are booming, thanks to its premium options, Alveo Land and Ayala Land Premier. Its office leasing segment saw a 92% lease out rate last year despite a 20% vacancy rate across the market, Zobel said.

The AIM property has a prime location. Whether Ayala Land decides to turn it into a residential project such as another phase of The Residences at Greenbelt, an office building, an extension of its Greenbelt malls, or a combination of these options, chances of success appear to be high. – Rappler.com