Ayala Land, Inc. (ALI) is broadening its partnership with Makro Philippines across four mixed-use estates in Metro Manila and Southern Luzon, a move seen strengthening the developer's strategy of combining residential, business, and retail uses within its estates.

The agreements cover Cloverleaf in Balintawak, Quezon City; Broadfield in Biñan, Laguna; Arca South in Taguig City; and Evo City in Kawit, Cavite.

"These agreements underscore the role of Ayala Land's estates as strategic gateways where communities, businesses and commerce come together," ALI Regional Estates Head Christopher Maglanoc said in a statement issued on Friday last week.

"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.

According to Mr. Maglanoc, Makro's presence would give families and businesses within and around the estates access to a wider selection of products and a large-format shopping experience.

The four estates span established and developing growth areas across Metro Manila and Southern Luzon. Arca South is a 74-hectare (ha) mixed-use estate in Taguig rising on the former Food Terminal Inc. complex, while Cloverleaf sits along EDSA near the North Luzon Expressway. Broadfield in Biñan is being developed as Ayala Land's first business campus in Laguna and has attracted companies from the manufacturing, logistics, and business services sectors. Evo City lies in Kawit, Cavite, one of Southern Luzon's rapidly urbanizing growth corridors.

"What excites me the most about this partnership is putting two businesses that are so well established independently together," Makro International Deputy Chief Executive Officer Shaun 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."

Under the lease structure, ALI will retain ownership of the properties in Broadfield, Evo City, and Cloverleaf, while Makro will develop and operate the stores. In Arca South, Makro will operate within Ayala Malls Arca South.

ALI said the arrangement would help generate recurring lease income while adding high-traffic retail anchors to its estates. Recurring income from leasing has become an increasingly important earnings pillar for major Philippine property developers, offering steadier cash flow than one-off residential unit and lot sales. The company added that the partnership also reflects its strategy of using its land bank and partnerships to support the long-term development of its mixed-use estates.

Makro Philippines is a joint venture between Ayala Corp. and CP Axtra Public Company Ltd., which operates the Makro and Lotus' brands. Ayala Corp. is ALI's parent company, making the expanded rollout a case of cooperation among businesses within the Ayala group. The venture combines Ayala's local market and property assets with the wholesale and retail operations of CP Axtra, a company listed on the Stock Exchange of Thailand.

Makro will offer fresh and dry food, imported products, and non-food essentials through its physical stores and e-commerce platform, supported by an omnichannel model designed to serve businesses and households. Cash-and-carry formats like Makro traditionally cater to bulk buyers such as sari-sari stores, eateries, and resellers in addition to households. The announcement did not specify opening timelines for the four locations.

— Alexandria Grace C. Magno

Source: Bworldonline