Ayala Land to transform Iloilo property into BPO hub

Ayala Land Inc. is planning to transform a 2-hectare property in Iloilo City into a business process outsourcing (BPO) hub.

In a disclosure to the Philippine Stock Exchange, the property giant said it signed a 35-year lease agreement with Teodoro B. Pison, Josefina B. Pison-Ortiz, and Riverside Boardwalk Properties Inc. for the development of a 2-hectare property located at Riverside Boardwalk, Barangay San Rafael Mandurriao in Iloilo City.

Ayala Land said the project would consist of 3 BPO facilities with a total of 19,000 square meters of gross leasable area.

The initial phase will involve the construction of the first building with approximately 9,500 square meters of GLA and an estimated project cost of P305 million.


The start of construction is scheduled in the second quarter 2010 and is expected to be completed by the first quarter of 2011.

Iloilo City was identified by the Business Process Association of the Philippines as one of the "next wave cities" for BPO firms because it has an attractive power, telecommunications, commercial sea and airport infrastructure.

At the same time, the city offers one of the lowest rental, power and average base pay rates in the country.

"Ayala Land's project will be the biggest BPO development in Iloilo to date and is consistent with the company's goal of expanding into, developing and redeveloping strategic areas within attractive growth centers across the country in order to deliver on the expectations of its customers and shareholders," the firm said.

Ayala Land has earmarked P27.2 billion for capital expenditures this year. It has lined up 32 projects, consisting of residential condominiums, shopping malls, office buildings, and hotels.