AYALA Land Inc. is tapping its mixed-use estates for additional recurring lease income through a partnership with Makro Philippines, which will establish wholesale stores in four of its developments across Metro Manila and Southern Luzon.
The property developer has signed land lease agreements with Makro Philippines covering Cloverleaf in Balintawak, Quezon City; Broadfield in Biñan, Laguna; Arca South in Taguig City; and Evo City in Kawit, Cavite.
Under the agreements, Ayala Land will retain ownership of the properties in Cloverleaf, Broadfield and Evo City, while Makro will develop and operate the stores.
In Arca South, Makro will operate within Ayala Malls Arca South.
The arrangement allows Ayala Land to generate recurring lease income from its estates while bringing a large-format wholesale operator into communities and business districts within its developments.
“These agreements underscore the role of Ayala Land’s estates as strategic gateways where communities, businesses and commerce come together,” regional estates lead Christopher Maglanoc said.
“Our estates are master-planned to support the needs of growing communities, and bringing a wholesale format like Makro to these locations creates value beyond the retail customer,” he added.
The four locations give Makro access to established and emerging growth centers across Metro Manila and Southern Luzon.
Arca South is a 74-hectare mixed-use estate in Taguig, while Cloverleaf is located at the junction of EDSA and the North Luzon Expressway in Quezon City.
Broadfield is being developed as Ayala Land’s first business campus in Laguna, with locators from manufacturing, logistics and business services, and Evo City in Kawit extends the partnership into one of Luzon’s growing urban corridors.
Makro Philippines is a joint venture between Ayala Corp. and Thailand-listed CP Axtra Public Co. Ltd., operator of the Makro and Lotus wholesale and retail brands.
Makro will offer fresh and dry food, imported products and nonfood essentials both through physical stores and via an e-commerce platform, using an omnichannel model aimed at serving households and businesses.
Makro International Deputy Chief Executive Shaun Wong said the partnership would combine Ayala’s local property platform with CP Axtra’s retail expertise.
“What excites me the most about this partnership is putting two businesses that are so well established independently together,” Wong said.
“The synergies that we have — the partnership on the land side and retail side as well. The future is bright. The future is exciting,” he added.
Ayala Land said the partnership formed part of a strategy of leveraging its land bank and partnerships to support long-term growth while developing more complete mixed-use destinations.
The company did not disclose the opening dates for the four Makro stores in its statement.
Ayala Land shares on Thursday closed down P0.18, or 1.18 percent, at P15.12 each.
