Makro to rise in four Ayala Land estates

Wholesale retail chain Makro is set to open in four mixed-use estates of Ayala Land.

In a news release on Friday, Ayala Land announced it has signed lease agreements with Makro Philippines covering the development of new stores in Cloverleaf in Balintawak, Quezon City; Broadfield in Biñan, Laguna; Arca South in Taguig City; and Evo City in Kawit, Cavite.

The Ayala Land-Makro Philippines lease deals came nearly a year after Ayala Corp. announced that its wholly owned subsidiary ACX Holding Corp. has formed a joint venture with Thai company Makro ROH Company Limited (MROH) —a unit of CP Axtra Public Company Limited— that will focus on operating Makro stores in the Philippines.

“These agreements underscore the role of Ayala Land’s estates as strategic gateways where communities, businesses and commerce come together,” said Christopher Maglanoc, Ayala Land regional estates head.

“What excites me the most about this partnership is putting two businesses that are so well established independently together,” said Shaun Wong, deputy chief executive of Makro International.

Under the lease structure, Ayala Land said it 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.

Makro, launched in the late 1990s, was a popular membership-only wholesale store in the country as a partnership between SM Group, Ayala Group, and Dutch firm SHV Holdings.

In 2004, the Ayalas sold their 28% stake in the Pilipinas Makro partnership with SM Group, increasing its stake to 60%.

In response to the declining popularity of the membership-only business model, SM Group folded the Makro brand into its retail segment, rebranding it as SaveMore and Hypermarket. —LDF, GMA News