SLMG’s The Flats by ALI
With a growing millennial population and their on-the-go lifestyle, coupled with increased road congestion, high real estate prices in central business districts (CBD), and the upward trajectory of the BPO sector, Ayala Land’s Strategic Landbank Management Group sought to provide an affordable housing option to potential residents located within CBDs and in a walkable distance from their places of work. The Flats is a residential for lease only development seeking to raise the bar of dormitory living.
The project capitalizes on its millennial target market’s need for mobility, efficiency, and strong attachment to social networks. At the same time, The Flats provides a solution to the target market’s preference for renting or condominium sharing over ownership.
On the business side, the project breaks out of the model of a typical Ayala Land product, employing different approaches to project development, design methodology, and operations. The Flats also aims to maximize the value of idle or unutilized land in the company’s landbank that would not have been developed given existing business formats. Specifically, it provides ALI the flexibility to develop properties whose configurations are irregular, smaller, or do not match the standards of current brands.
Since launching the project, an estimated P225 million worth of land values were unlocked. The “off-the-grid” process generated lower development costs per leasable sqm (11% to 26%) compared to other Avida or Alveo residential projects in Makati.
The Flats opens marketing opportunities for Ayala Land Offices to offer bulk dorm units to BPO locators as part of the incentive package to their employees. Estates with school components may also benefit from the model by offering units to students as well.
The Makati and Bonifacio Global City projects are currently under construction and are slated for operations by the second quarter of 2018.