Property developer Ayala Land, Inc. (ALI) is embarking on the second phase of its commercial center revamp after completing primary enhancements across its four main flagship properties.
The developer noted that the initial stage of redevelopment yielded increased occupancy rates, higher customer footfall, and improved merchant sales across its properties during the first half of 2026.
The upcoming series of physical refurbishments and retail repositioning will target key regional and suburban assets, such as Ayala Malls Abreeza in Davao City, Ayala Malls MarQuee in Pampanga, and Ayala Malls Cloverleaf in Quezon City.
This capital spending program for established assets is being executed alongside the launch of new retail locations.
ALI recently launched Ayala Malls Arca South and remains on track to open Ayala Malls Gatewalk in Mandaue City, Cebu, by December. In total, the developer anticipates introducing approximately 200,000 square meters of new retail gross leasable area within the year.
The dual-track approach enables the property firm to advance two growth avenues within its retail portfolio. While established shopping centers undergo physical updates and tenant mix adjustments, new estate developments offer opportunities to introduce retail spaces integrated with expanding residential neighborhoods and office centers.
Following the completion of core redevelopment works at Glorietta, Greenbelt, Trinoma, and Ayala Center Cebu, ALI reported that its overall shopping center lease-out rate reached 90 percent at the end of June 2026, up from 87 percent in the previous year.
During the same timeline, same-mall revenues grew by seven percent, accompanied by a five percent increase in visitor footfall. The shopping center division sustained an earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 61 percent, buoyed by heightened tenant productivity and early financial yields from the modernized properties.
The initial phase of the flagship project was first launched in 2024 to modernize older retail hubs.
According to Mariana Zobel de Ayala, Head of Leasing and Hospitality at ALI, the physical upgrades aim to align commercial spaces with changing consumer preferences while boosting support for merchants and driving long-term portfolio value.
“Our reinvention is about keeping our malls relevant as customer needs and retail continue to evolve,” Zobel de Ayala said. “As we complete the physical transformation of our flagship assets, our focus is on strengthening the overall customer experience, supporting our tenants and ensuring that these properties continue to perform and create value over the long term.”
With primary construction at the central flagship assets completed, the next phase focuses on maintaining high occupancy, optimizing space productivity, and refining tenant offerings.
Shopping centers remain a key focus of capital allocation for ALI as the group grows its proportion of recurring income streams relative to traditional property development sales.