Property giant Ayala Land Inc. is spending P20 billion to redevelop a five-hectare lot within the Ayala Center that will integrate a new high-end residential project, two office buildings, more mall spaces and a hotel.

In a press briefing, ALI chairman Fernando Zobel de Ayala said they are kicking off with the redevelopment because of the recovery in the real estate market.

“There is a feeling that people want to get back into the market,” he said noting that this comes on the back of the signs of recovery in the US economy and the strengthening of the local property market starting July last year.

Zobel said ALI is optimistic of the prospects of the property business this year when ALI expects its sales to surge 268 percent to 9,200 units from 2,500 units last year.

He explained that this because interest rates remain low, remittances continue to grow, investors remain interested in the economy, banks are healthy and able to lend more, and because a clean elections usually boost confidence and result in three quarters of growth.

Zobel said they will kick off the redevelopment with the construction of a new high-end residential project to be called Park Terraces which is a three-tower development and Ayala Land Premier’s first sustainable vertical community.

The project’s first tower will offer 150 units ranging from 37 square meters to 270 sqm per unit with prices starting at P5 million for the studio units to P40 million for the penthouses, ALP president Bobby Dy said.