By Zinnia B. Dela Peña Updated July 27, 2009 12:00 AM [ philstar.com ]
MANILA, Philippines - Robinsons Land Corp., the property development arm of Gokongwei flagship firm JG Summit Holdings Inc., is spending a combined P10 billion in 2010 and 2011 to complete the construction of ongoing and future high-rise residential projects.
In a filing with the Securities and Exchange Commission (SEC), RLC said its residential buildings division would need approximately P5 billion per year to fund the development of the first tower of its joint venture with Security Land located on Ayala Ave., the second tower of Sonata Private Residences in Ortigas Center, the second tower of Trion towers in Bonifacio Global City, an additional building in Woodsville and the first tower of the Magnolia Residences.
“RLC believes that the potential for growth is in the affordable mid-to high-rise condominium developments and in the middle to high-end horizontal residential segments of the market and the company intends to take advantage of these opportunities,” the company said.
Magnolia Residences is envisioned to be a self-contained community located in a five-hectare property in New Manila.
For fiscal year 2009, RLC has allotted P8.7 billion for its total capital expenditures, with 38 percent going to residential buildings, 37.7 percent for commercial centers, 14.4 percent for office buildings, six percent for housing and land development, and 3.9 percent for hotels.
The capex will be funded from existing cash, cash generated from operations, pre-selling and additional borrowings.
RLC is building three more new malls located in Davao, Tacloban, and General Santos, which will increase net leasable area by 71,000 square meters or 10 percent from previous year.
RLC’s shopping mall network will increase to 26 by the end of September this year from 21 the previous year.
For next year, the company intends to complete another three malls located in Cebu, Dumaguete and Laoag which will provide an additional net leasable area by another seven percent.
As for its housing and land division, RLC plans to begin development of at least three new and expansion projects per year with a focus on affordable subdivision lots with housing options in seven regional capitals and select low-rise projects in highly urbanized centers.
To be launched this year include The Wellington Courtyard — phase 2 in Tagaytay City, the 15-hectare project in Capas, Tarlac; re-launching of the Vimana Private Villas in Pasig.
By September this year, RLC’s shopping mall network will increase to 26 from only 21 the previous year.
Aside from this, RLC will continue to take advantage of the resilient demand for office space by allotting leasable area for BPOs as needed in its malls. It started construction of Robinsons Cybergate Plaza, which will have 20,000 square meters of net leasable office area.
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 accommodation. 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. RLC is also looking at three other sites in key cities in the provinces.
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