Posted on 09:00 PM, January 13, 2010 [ BusinessWorld Online ]
DAVAO CITY -- Filinvest Land, Inc. is projecting P2 billion in sales from its nine Mindanao projects this year despite the lingering effects of the global economic downturn.
Allan J. Barquilla, Filinvest manager in the city, said the goal is roughly a fourth higher than sales generated in 2009, adding that overseas Filipino workers have remained the company’s biggest market.
Aside from its six projects in the city, the company has also ventured into the cities of Zamboanga, Butuan and Tagum. “We are very optimistic that we can top our sales projection because we will aggressively market these projects,” he said, pointing out that the company would reach out to nearby provinces.
In its effort to seize opportunities in Mindanao, the company is also planning new projects particularly in General Santos and in Koronadal cities in South Cotabato, where it has already bought properties for future development.
Aside from local agents, the company will also open more sales channels in countries where there are sizeable Filipino communities, said Geraldine C. de Gorostiza, company business development officer.
These marketing channels, Ms. De Gorostiza added, are expected to generate significant sales for the company considering that even foreign retirees have made inquiries on the company’s Kembali Coast project in the nearby “Island Garden City” of Samal.
Kembali Coast, a 50-hectare area with a kilometer-long beach front, is considered among the pioneering residential resort projects in this part of the country. Aside from residential lots, the project also has aqua sports amenities. Even retirees from Luzon have made inquiries about the project, and some have already bought lots, she added.
Filinvest’s biggest project here is One Oasis, a six-building, 800-unit condominium complex at the back of SM City Davao just outside the city proper. Mr. Barquilla said about 40% of the 240 units in the first two buildings have already been sold , particularly by those from other areas of Mindanao.
“Many of the buyers are families of students from other provinces,” he added, explaining that this has prompted the company to mount sales missions to cities as far as Butuan in Caraga and Isulan in Sultan Kudarat in Central Mindanao.
Business leaders in Mindanao earlier said the property sector is expected to perform better this year.
Roberto U. Teo, head of the city’s business promotions center, said his office has received inquiries from Manila developers on the possibility of investing in the city.
Gotianun-led Filinvest Land successfully raised P5 billion from a retail bond sale in November, with the bond issue three times oversubscribed.
Filinvest Land issued P500 million in three-year bonds at a fixed interest rate of 7.5269% and P2.5 billion in five-year bonds at 8.46%, inclusive of the full exercise of a P2-billion oversubscription option.
Filinvest Land said proceeds of the bonds would be used for the development of various mass housing projects under the company’s socialized, affordable and middle-income segments.
It will also fund various mid-rise residential building projects in Metro Manila, Cebu and Davao, as well as finance land acquisition for future development projects.
Shares in the property firm dipped to P0.93 apiece yesterday from P0.95 on Tuesday. -- Carmelito Q. Francisco
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