Ayala Land, controlled by billionaire Jaime Zobel de Ayala and his family, is investing 90 billion pesos ($1.8 billion) in the central Philippine island of Cebu to develop a mixed-use commercial and residential waterfront estate.
The investment demonstrates the company’s confidence in Cebu’s economic prospects, the real estate giant said in a statement.
“As one of the country’s fastest growing hubs, we believe this development will not only elevate Cebu as a future growth destination–but will also elevate the experiences and opportunities available to Cebuanos and visitors alike,” Ayala Land president and CEO Bobby Dy said in a statement.
South Coast City, as the project is dubbed, will be developed over the next two decades on a 26-hectare (260,000 square meter) site within the South Road Properties district, a 300-hectare reclaimed land area in southern Cebu City.
South Coast City is strategically located within the South Road Properties and is connected to the Cebu-Cordova Link Expressway, an 8.5-kilometer highway being built by Manuel Pangilinan’s Metro Pacific Tollways Corp. The road, which is scheduled to be completed in 2022, will connect Cebu City to Mactan Island, which is home to the international airport.
Ayala Land and its subsidiary Cebu Holdings are developing South Coast City in partnership with SM Prime, the country’s largest shopping mall operator, which is controlled by the family of late retail magnate Henry Sy. The development is adjacent to the Seaside Mall, a shopping center opened by SM in 2015.
District Square, a commercial center within South Coast City, will be built on a 2.7-hectare site. Ayala Land will sell 11 commercial plots ranging in size from 1,777 to 2,601 square meters at District Square to developers.
Apart from the commercial center, District Square will feature a 1.1-hectare park, an arena, a convention center, and additional recreational space. Additionally, residential developments will be constructed within South Coast City.
Ayala Land’s parent company, Ayala Corp., is the country’s oldest corporation, dating all the way back to 1834, when the country was a Spanish colony. Jaime Zobel de Ayala’s grandfather began his business career in Manila with a distillery before expanding into banking, hotels, real estate, and telecommunications.
Ayala, 86, was ranked fifth richest person in the country in August 2020, with a net worth of $3.6 billion. He retired in 2006, and his son Jaime Augusto Zobel de Ayala succeeded him as chairman. Jaime Augusto Zobel de Ayala had been the CEO of Ayala Corp. since 1994. Fernando Zobel de Ayala took over as CEO in April, and Jaime Augusto remains chairman.