Vol. XXII, No. 91 [ BusinessWorld Online ]
Monday, December 1, 2008 | MANILA, PHILIPPINES
ZAMBOANGA CITY — Landco Pacific Corp. will take a cautious stance next year amid a jittery market and the threat of a possible credit crunch.
In an interview, Landco President Alfred Xeres-Burgos, Jr. said the Metro Pacific Investments Corp. property unit would focus on existing projects rather than expand.
"We are conserving our cash. We don’t know if there will be a credit crunch. If there is a credit crunch, obviously, most of the companies in this industry will suffer," he said.
Landco officials were here at the weekend to launch an upscale residential project.
"It is very hard for anybody at this stage to project what the sales figures will be in 2009. We are trying to make sure... we’re not caught flat-footed," Mr. Xeres-Burgos said.
He said their peers were continuously monitoring sales. "It’s not a bullish market as it used to be. However, the downturn is not here yet, so we don’t know what will happen. As a prudent company, just like everybody else in this industry, we will be very careful in 2009," he said.
Landco Executive Vice-President Francis V. Ceballos said the company would just complete its expansion projects that started this year and last year.
"Given the outlook for next year, we feel it’s more prudent to continue developing first what we have [started]," he said, adding that "we can’t be too aggressive or reckless."
Mr. Xeres-Burgos said Landco was concentrating on its Davao and Zamboanga operations in Mindanao.
Landco opened its Woodridge Garden Village on Sunday with a start-up capital investment of more than P400 million.
Rosemarie T. Napao, Landco project head in this city, said at least 670 lots would be available inside the 24-hectare resort-like subdivision.
The Woodridge project is the biggest residential project in the city, underscoring Zamboanga’s potential for other real estate companies. Filinvest Development Corp. is another major realty firm operating here.
Ms. Napao said Woodridge would have a southern California architectural theme.
"We are enjoying brisk sales as projected and it looks like we are hitting the market that we originally targeted. Now it’s a challenge for us to [ensure] the quality of our products," Mr. Xeres-Burgos said.
Earlier, Landco said it was spending P3.5 billion this year for new projects and expand existing ones to boost revenues. — Darwin T. Wee
