Ayala Group investing P264 billion in property, telecom, power

Ayala Corp, a leading Philippine conglomerate, announced over the weekend that it plans to spend P264 billion on capital expenditures in 2023, according to a report by Manila Standard.

The budget will be allocated to sustain the investments of Ayala's property, telecommunication, and power generation businesses.

The company stated that 32 percent of the total capital spending would be allotted to Ayala Land Inc., its property arm, which plans to aggressively launch residential projects and acquire land for future development.

Furthermore, Globe, Ayala's telecom unit, will spend $1.3 billion this year, down 32 percent year-on-year, and its capital spending will further decline to $1 billion by 2024, according to Ayala. ACEN Corp, on the other hand, earmarked P51 billion to P70 billion in capital expenditures this year, depending on the opportunities that may arise.

At the parent level, Ayala announced that it will spend P19 billion to sustain the expansion of healthcare and logistics businesses. The conglomerate also anticipates raising P50 billion from divestment from non-core businesses and joint partnerships by 2023, stating that it would "continue to engage with interested parties around potential divestments, despite current headwinds."

The group raised P31.1 billion in 2022 through the sale of its concession in the 4-kilometer Muntinlupa-Cavite Expressway to Villiar Group's Prime Asset Ventures Inc. for P3.8 billion and the property-for-share swap with Ayala Land Inc. Furthermore, Ayala expressed plans to sell its stake in Light Rail Manila Corp., which operates and maintains LRT Line 1. The proceeds from the divestment would be used to fund future investments and further strengthen the company's balance sheet.

Ayala president and chief executive Cezar Consing earlier expressed confidence that the company's businesses would get back to or exceed pre-pandemic levels this year. Ayala maintains a positive outlook for 2023 as indicators point towards growing consumer demand. Meanwhile, the company will also seek growth by scaling emerging business units and exploring ways to increase exposure to the consumer wallet.