ALLHC expansion strengthens market leadership

From the Philippine Daily Inquirer

The boom of ecommerce, largely thanks to the effect of the pandemic on Filipinos’ purchasing habits, has had a radical effect on industrial real estate. In recent years, businesses have adapted to the growth drivers of this sector, such as the decentralization of logistics facilities, digitalization, and the use of cloud technology to cater to consumers’ needs – and no other company has been doing it as seamlessly and efficiently as AyalaLand Holdings Corporation (ALLHC).

As the leading developer and operator of industrial parks and real estate logistics facilities in the Philippines, ALLHC is the only company with a real estate logistics platform that is “anchored on the new economy.”

“ALLHC sees the industrial real estate as a sector with high growth potential. In the Philippines, real estate logistics is a fragmented market. This gives ALLHC the opportunity to consolidate and execute locally what is happening to the industrial real estate landscape globally,” says ALLHC President and Chief Executive Officer Mr. Jose Emmanuel H. Jalandoni.

Given its history, ALLHC has long been in the business of industrial estates with its Technoparks and warehouse facilities with ALogis. Capitalizing on global market opportunities and secular growth drivers, the company moved towards creating new business platforms to diversify its portfolio.

ALLHC ventured into cold logistics with ALogis Artico in response to the rising demand for temperature-controlled facilities. High consumer spending on food items, sustained high importation of meat, seafood, dairy, and the growth in vaccine rollouts and demand for other temperature drugs are behind the increasing demand. ALLHC will break ground for two cold storage facilities in its Pampanga and Batangas properties in 2023 to build up its capacities in cold storage.

Demand for data centers, on the other hand, is driven by the data consumption growth accelerated by the pandemic, increased data usage by the country’s young and internet-savvy population, data localization, and the demand for lower latency driving emerging markets. The total demand for data is projected to be at 100 to 150MW in the coming years.

In 2022, ALLHC entered a joint venture partnership with FLOW Digital Infrastructure to develop data center campuses across the Philippines. By further diversifying to data centers, ALLHC will significantly contribute to the development of digital infrastructure capabilities in the Philippines.

“We are gearing up for the construction of a three-building campus facility with 36MW of IT capcity in Binan, Laguna. With A-FLOW data centers, we enter a new frontier. Our data center project will support the growth of data storage which will allow the country to pivot to a digital economy,” adds Mr. Jalandoni.

This 2023, the company will continue to increase its presence in key areas across the country and to diversify its product portfolio further. Plans are on track to increase presence to 10 strategic locations, grow warehouse GLA to 500,000 sqm, continue expanding new business segments, and to explore more new business platforms, all by the year 2025.

Finally, ALLHC also looks forward to contributing directly to employment growth in the country through their investments. Locator-companies in ALLHC’s developments have generated over 100,000 jobs. Mr. Jalandoni says, “We take pride in our role in countryside development and job creation, especially as the company expands geographically.”