January 20, 2020 – This is to clarify the news about the U.P. Ayala Land Technohub development lease arrangement with the University of the Philippines (UP). UP will receive a total value of P171/square meter/month. This was derived from P4.23 billion in lease payments and P6 billion investment in 16 commercial buildings for a total amount of P10.23 billion over the life of the 25-year contract. After 2033, UP as owner will receive 100% of the buildings’ rent. UP also continues to own the land which has appreciated in value since the start of the partnership.
In 2006, ALI entered into a lease agreement with UP in the development of the U.P. Ayala Land Technohub. This was after 2 failed bids and an invitation for a negotiated proposal to 9 real estate developers. Only ALI submitted a proposal and committed to meet the very specific parameters set out by UP – a campus-type development with a minimum of 10, 3-4 storey buildings catering to IT companies.
Since the start of operations in 2008, the ALI-UP partnership has created 50,000 jobs in the development.
To clarify further, only 20 of the 37-hectare property is developable given that 4 hectares remain with UP and 13 hectares are allocated for open space.
Over the 25-year term of the lease, UP will receive the ff: 1) Lease Payments and 2) Buildings. This totals P171/sqm/month broken down as follows:
We believe this development has been fruitful and beneficial for UP, ALI and the community. We welcome a transparent review and assessment of our partnership with UP.
For more information, please contact:
Suzette P. Naval
Corporate Communications Manager
ABOUT AYALA LAND, INC.
Ayala Land is the Philippines’ leading developer of sustainable estates, offering a diverse mix of properties such as residential, retail, office, hotels, and leisure developments, that support local economic growth and nation-building.
The company was established in 1988 as the real estate arm of Ayala Corporation, a pioneer conglomerate and builder of the country’s premier financial and commercial district, now known as Makati Central Business District and Ayala Center.
Today, Ayala Land has a total of 28 sustainable estates and is present in 57 growth areas nationwide. It has five residential brands, namely Ayala Land Premier, Alveo, Avida, Amaia, and BellaVita, which deliver quality homes to a broad segment of the housing market. Its commercial development and leasing portfolio is comprised of Ayala Malls, Ayala Land Offices, and Ayala Land Hotels and Resorts Corporation.