By Zinnia B. Dela Peña Updated March 31, 2009 12:00 AM [ philstar.com ]
MANILA, Philippines - Robinsons Land Corp. (RLC), the real estate development arm of Gokongwei flagship firm JG Summit Holdings Inc., is setting aside around P8 billion this year to bankroll the construction of new shopping malls, office buildings, residential units and a chain of budget hotels.
RLC president and chief operating officer Frederick Go said the company intends to open five new malls this year which will make available an additional 71,000 square meters of gross leasable space.
At the start of its fiscal year ending September 2009, RLC had completed and opened Robinsons-Pulilan and Tagaytay as well as the first phase of the redevelopment of its Luisita mall.
Other malls targeted for opening this year are in Davao, Tacloban and Gen. Santos.
RLC’s shopping mall network will increase to 26 by the end of September this year from 21 the previous year.
“The company’s business plan for the commercial centers division over the next five years, subject to market conditions, is to sustain its growth momentum via development of new shopping malls and expansion of existing ones,” Go said.
Aside from this, RLC will continue to take advantage of the resilient demand for office space by allotting leasable area for BPOs (business process outsourcing) as needed in its malls. It started construction of Robinsons Cybergate Plaza, which will have 20,000 square meters of net leasable office area.
“While demand is still strong, we expect rental rates to be under pressure this year with the increase in office space supply. However, we are confident that our office buildings will maintain high occupancy because of their better locations, geographic spread, and the fact that they are anchored in our mixed-use developments,” Go said.
RLC is completing the 108-room Summit Ridge Hotel Complex in Tagaytay, which is slated to open this June.
To cater to a wider section of potential clients, RLC launched a new concept in the hospitality business with its budget Go Hotels, offering affordable and value-for money accomodation. These hotels will rise in RLC’s malls and 24-hour convenience stores.
The first site of the Go Hotel is in Robinsons Pioneer Cybergate complex, which is expected to be completed in the next fiscal year.
As for its housing projects, RLC has a pipeline of over 30 residential buildings planned for the mid term, five of which will be launched this year. Among these include the second residential tower of Sonata Private Residences, the second tower of additional buildings in Woodsville, and the first tower of the recently-acquired Magnolia property.
Go said the company aims to launch three new housing projects annually.
“Our business model remains the same-searching for joint venture partners in provincial areas that will allow us to expand into new localities with less upfront capital tied up to land acquisition. The lower price points of our products in this division should give us more traction in a property downturn,” Go said.
At the same time, RLC said it remains to be on the look out for opportunities to pick up good value assets that might become available in the midst of these challenging times.
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