By Zinnia B. Dela Peña (The Philippine Star) Updated April 17, 2010 12:00 AM
MANILA, Philippines - Capitalizing on a resurgent property market, Vista Land & Lifescapes Inc., the listed holding firm for most of the real estate business of the Villar family, is rolling out 30 new projects this year estimated to generate P30.2 billion in sales.
In a press briefing yesterday, Vista Land senior vice-president for finance Ricardo B. Tan Jr. said the company is adopting a more aggressive posture this year given the recovery of global markets and improving investor sentiment.
“2010 promises to be a much better year than last year and our company is poised to take advantage of renewed growth in the property sector. With a strategically located landbank of 1,750 hectares nationwide, Vista Land is very optimistic about the company’s prospects,” Tan said.
“Confidence appears to have returned and is growing, and concerns of a global depression have all but disappeared. Given the strength in market demand for housing, we plan to be more aggressive in our project launches this year,” he added.
Last year, Vista Land introduced 23 new projects valued at P20.5 billion.
For this year, Vista Land has earmarked P10.2 billion for its capital expenditures, 25 percent higher than the P8 billion spent in 2009. Bulk of the programmed capital budget, or P5.5 billion, will go to house construction, P2.9 billion for land development and P1.8 billion for land acquisition.
With the renewed appetite for real estate products, the company expects its core net income to increase this year although it would still be below P3 billion. In 2009, Vista Land posted a net profit of P2.3 billion, down 18 percent from the previous year. Revenues from real estate sales likewise fell eight percent to P9.6 billion.
As of end-December 2009, Vista Land’s total consolidated assets stood at P55.1 billion, up from P52.7 billion a year earlier.
“2009, as expected, was a tough year, but in spite of a very challenging market environment, we were able to achieve our financial targets. The company’s strategy was to continue to focus on the affordable and low-end market segments, resulting in particularly strong growth from Camella Homes and Communities Philippines,” Tan said.
Sales take-up is seen to hit P20 billion while revenues are forecast to grow to P10.8 billion-P11 billion this year, Tan said.
Tan said the company, which has the widest geographic presence among the country’s real estate developers, is bent on defending its leading position in the affordable and low cost housing segment amid the entry of new players like Ayala Land Inc.
“The strength and popularity of our Camella brand which has become even more popular following a very successful and comprehensive marketing campaign should permit Vista Land to continue to dominate the affordable and low-cost segment of the market,” Tan said.
Vista Land is the holding company of five business units: Brittany, Crown Asia, Camella Homes, Communities Philippines and Vista Residences.
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