Philippine’s real estate developer Ayala Land has diversified into retail through a joint venture with Rustans Group’s retail arm Stores Specialists.
Ayala Land’s joint venture with Stores Specialists is part of its strategy to seek opportunities in the retail sector. Stores Specialists, owned by Tantoco family, holds exclusive rights to sell, distribute and market upscale brands including Prada, Gucci, Burberry, Calvin Klein, Marks & Spencer, Debenhams, Nine West, Ralph Lauren and Lacoste. It carries more than 50 luxury brands and 250 boutiques spread across a total of 250,000 sqft retail space.
“The partnership with Stores Specialists will enable Ayala Land to support its mixed-use developments and, at the same time, grow its recurring income portfolio,” Ayala Land deputy compliance officer Pamela Ann Perez said.
Just recently, Tantoco family sold 50 per cent stake in its grocery chains Rustan’s Supermarkets and Shopwise to Dairy Farm, a retailing group affiliated with the Hong Kong-based Jardine Matheson.
Ayala Land’s net income rose 31 per cent to 7.1 billion pesos (US$163.48 million) last year. As at 2011, it has developed 1080 shopping centers and 449 offices. Looking ahead, the company aims to achieve 10 billion pesos (US$230.26 million) net income and 15 per cent return on equity by 2014.
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