AyalaLand Logistics Holdings Corp. (ALLHC), the subsidiary of Ayala Land, Inc. (ALI) focused on the development of industrial properties, is planning to double its current cold storage capacity by 2025 as demand from importers continue to grow.
During the ALLHC annual stockholders’ meeting, ALLHC President and CEO Robert S. Lao said that, since entering the cold storage business in 2021, ALLHC now have two facilities in Laguna and one in Cebu with a combined capacity of 10,300 pallet positions.
“There is room for this business segment to grow even more given the growing demand from institutional market and sustained meat importations. This is also aligned with forecasts that the local cold storage capacity will grow by eight to 10 percent per annum starting this year,” Lao noted.
He added that, “Our intention is to double our capacity by 2025. We have two upcoming cold storage facilities, ALogis Artico in Santo Tomas and ALogis Artico in Mabalacat. Upon completion this quarter, each facility will add 5,000 pallet positions to our portfolio by 2024.
“We will already have 20,300 positions. We will further augment this growth by breaking ground for two more facilities within the year.”
Lao said “Leasing activities are ongoing. We expect to accelerate leasing as our facility nears completion. We have recently signed an agreement with a system integrator who may act as a service provider for potential lessees.”
Meanwhile, during the annual stockholders’ meeting of parent company Ayala Land Inc., ALI President and CEO Anna Ma. Margarita B. Dy said, “We are optimistic about 2024. We have a P100 billion budget for project launches and P100 billion in capex planned for this year.”
She added that the company expects to continue to grow on its 2023 performance, which saw an 18 percent growth in revenues and a 32 percent growth in net income after tax.
Dy noted that, “our planning parameters do not include any boost from lower interest rates… the current higher interest rates have affected demand in the mid-market, our core residential markets, our Avida and Amaya brands.”
“The sentiment there is improving and we expect a boost when interest rates improve. We have to be agile to take advantage of changing market opportunities. So while 80 percent of our planned launches in 2024 are in the premium brands, we have projects in our core residential brands that are on ‘push button’ mode—the land is ready, the plans are ready, the permits are ready, and, when the market starts to move, we can push the button and launch,” she added.
Dy said ALI commercial office space has been resilient amid challenges faced by the segment worldwide noting that, “That has not happened to us. Our office occupancy rate is very healthy at 92 percent, much better than the rest of the local market.”
“It's a flight to quality and we continue to see demand for our office space. We are cautiously growing our portfolio with the focus on winner sites and verifiable long term demand,” she said.
Meanwhile, amid the growing popularity of online shopping, Dy said “We believe that it will not replace the need for a physical shopping experience. However, moving forward, we need to give the Filipino consumer an improved and heightened customer experience, a reason to want to go back to brick and mortar shopping. This is why we have embarked on a P13 billion reinvention plan for our flagship malls."
"This year Ayala land embarked on a new growth strategy focused on building places that people love. The goal is to elevate the standard of quality, reinforce the company's position as a market leader and enhance the customer experience across its product and service offerings,” she said.