Ayala Land Inc. has signed a 35-year lease agreement with the Pison family for the development of a two-hectare property in Iloilo City into a business process outsourcing facility at a cost of about P900 million.

In a disclosure to the Philippine Stock Exchange Thursday, ALI assistant corporate secretary Solomon Hermosura said the firm signed an agreement with Teodoro Pison, Josefina Pison-Ortiz, Roberto Pison, and Riverside Boardwalk Properties, Inc.

The property is located at Riverside Boardwalk, Barangay San Rafael, Mandurriao, Iloilo City. The project will consist of three BPO facilities with a total of 19,000 square meters of gross leasable area (GLA).

The initial phase will involve the construction of the first building with about 9,500 square meters of GLA and an estimated project cost of P305 million. Construction is slated to start in the second quarter of 2009 and is seen to be completed by the first quarter next year.

ALI said Iloilo city has been identified by the Business Processing Association of the Philippines as one of the Next Wave Cities for BPO firms.

It has an attractive power, telecommunications, commercial sea and airport infrastructure and offers one of the lowest rental, power and average base pay rates in the country.

ALI said its 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.

ALI has just forged its second joint venture with the prominent Floirendo family of Davao, this time for the mixed use development of a property in Cagayan de Oro City including a mall at an initial cost of P2.5 billion.

The firm entered into a joint venture agreement with Anflo Management and Investment Corporation and Mindanao Motors Corporation.

The agreement covers the development of a 3.2 hectare property along Claro M. Recto Avenue at the heart of Cagayan de Oro City which is a high growth trade and commercial center serving as a transport hub for Northern Mindanao.

The total initial investment for the project is about P2.5 billion for the development of the centrepiece shopping mall with about 40,000 square meter of gross leasable area.

This will eventually be followed by the development of a business process outsourcing oriented office building and a boutique hotel.