Posted on 10:43 PM, March 01, 2010 [ BusinessWorld Online ]
THE REAL estate arm of businessman George S. K. Ty is set for a bullish run this year by launching eight residential projects, a senior official said late last week.
The number of new projects this year is double the annual average, and this will allow Federal Land, Inc. to tap new markets and meet rising demand for high-rise residential units, Dennis D. Lim, first vice-president for sales and marketing of Federal Land, said in an interview.
TY-LED Federal Land, Inc. is setting aside
The projects to be launched this year include the new tower of the Bay Garden Club and Residences in Pasay; the sixth tower of the Marquinton Garden Terraces in Marikina; the second tower of the The Peninsula Garden Midtown Homes in Paco, Manila; the second tower of the Grand Midori Makati; the second and third buildings of the Oriental Garden Residence in General Trias, Cavite; and the first of four buildings on a 7,000-square-meter property in Binondo, Manila, he said.
Federal Land launched four projects last year, five in 2008, and four in 2007. “We have not done that scale of opening a project almost every month,” Mr. Lim said.
All eight projects will cater to the lower-middle to upper-middle markets.
Units for the lower-middle and upper-middle markets cost P1.3 million-P1.4 million and P7 million-P8 million, respectively.
Late last year, Federal Land said it would set aside P5 billion for capital expenditures next year, up from the P3.5 billion spent for 2009.
Funds will come from revenues generated by past projects.
Mr. Lim said: “There are some borrowings also but bulk [of spending for the year will be financed by] collections.”
Asked whether the real estate firm is looking at selling shares to the public to raise more funds, Mr. Lim said, “Yes, in the future. Not now.”
“The market is there, the resources are there and also the land bank,” Mr. Lim said.
Federal Land has less than a thousand hectares of land for development, including 16 hectares in Marikina and 19 hectares in Parañaque, Mr. Lim said.
“The growth [driver] for the company is to offer projects in places where we do not have a project,” Mr. Lim said.
“By the end of 2010, we would have opened an inventory total of around P15 billion [worth of residential units],” he added.
Moreover, additional land can be secured from the Metrobank Group of Mr. Ty. Federal Land has three joint venture projects with the Metrobank Group -- the Capital Towers in Quezon City and the Oriental Place and the Grand Midori Makati.
Late last year, Federal Land launched four projects in Marikina, Makati, Quezon City and Manila, all of which will cost the company P5 billion. -- Neil Jerome C. Morales