Ayala Land Inc. (ALI) is moving forward with its largest-ever retail expansion this year, despite ongoing global uncertainties. The property giant plans to open over 200,000 square meters of new retail space in 2026, its biggest annual addition to date, as announced during its recent stockholders' meeting. In addition, ALI will deliver more than 70,000 square meters of office space.
This expansion comes as the company adopts a cautious stance due to risks from the Middle East crisis, which it views as a significant disruptor to the property development industry. "In times like these, our top priority is stability over aggressive growth," said Ayala Corp. chair Jaime Augusto Zobel de Ayala. He emphasized that the strategy is to expand the leasing footprint and reinvent malls and hotels to remain relevant under current circumstances.
ALI's malls are evolving beyond traditional retail into "social infrastructure," with successful reinvention projects at Ayala Center Cebu and Trinoma. Glorietta and Greenbelt are expected to reopen in the first half of 2026. The company has also refined its tenant mix by introducing first-to-market brands, resulting in a 5% revenue growth and a 91% lease upgrade for its malls despite ongoing renovations.
In the hotel sector, ALI acquired New World Makati, expressing confidence in long-term tourism growth. The Mandarin Oriental is set to reopen in the fourth quarter after more than a decade. Reinvestments across the leasing portfolio are expected to boost rents and room rates by 15 to 20% once stabilized. Office assets have seen an 87% leasing upgrade, supported by new multinational leases totaling 82,000 square meters.
ALI is also expanding into industrial real estate, particularly cold storage facilities, to strengthen its leasing business. This leasing-led strategy is supported by AREIT Inc., ALI's real estate investment trust, which targets P15 billion to P20 billion in annual asset infusions from its sponsor and third parties. About half of ALI's office assets, a third of its malls, and less than a third of its hotels have been infused into AREIT, providing a clear path for future growth.