AYALA Land Inc. (ALI) is leasing a 120,636.92-square meter lot at John Hay Special Economic Zone in Baguio City, where it will put up mixed-use facilities intended for retail and business process outsourcing (BPO).

In a disclosure Wednesday, Jaime Ysmael, ALI senior vice president and chief financial officer, said the property unit of the Zobel group forged the land lease deal with Camp John Hay Development Corp. (CJHDevCo) on July 1. The lease agreement will run for 39 years.

“The development will have about 40,000 square meters of BPO office space and support facilities and about 7,000 square meters of retail,” he said. This will be ALI’s first BPO project in Baguio City.

The Ysmael said the initial cost of the John Hay project is estimated at P3 billion.

ALI will issue up to 1 billion common shares, with an aggregate par value of P1 billion, to generate funds for expansion. It did not say, though, if the targeted proceeds will be used for its project in the former American military base.

The company, whose shares are traded on the Philippine Stock Exchange, has allotted a capital expenditure of P24 billion this year, the biggest in its history.

The amount, to be funded by a combination of internal cash and borrowings, will support its aggressive expansion in the residential and office development segments and support priming activities in a strategic land bank in the Makati Central Business District, Bonifacio Global City and Canlubang, Laguna.

The Sobrepeña group is the leading developer of Camp John Hay, which is owned by its units, namely, Fil-Estate Management Inc., with 15 percent; College Assurance Plan, 25 percent; and Fil-Estate Corp. and Northwoods Co., with 30 percent each.

Besides BPO facilities and retail structure, CJHDevCo said there will also be a condotel with wellness and medical facilities and forest cabins.

CJHDevCo was awarded the 50-year contract of lease to develop Camp John Hay in October 1996, five years after the camp was turned over by the American government to the Philippines.

The company is 15-percent owned by Fil-Estate Management Inc., 25 percent by College Assurance Plans, 30 percent by Fil-Estate Corp. and 30 percent by Northwoods Co.

Source: Business Mirror