Posted on 09:51 PM, May 17, 2010 [ BusinessWorld Online ]
ORTIGAS and Co. Limited Partnership, one of the oldest property developers in the country, is looking at increasing revenues and profits by a fifth this year with cash flow from new projects, an executive said yesterday.
Growth will be driven by the completion of condominium projects and higher leasing revenues from commercial and business process outsourcing (BPO) activities, an executive said.
“[Revenue was] over P2 billion last year and our net income was over P600 million. Our target is to go up by 20% in revenues [and] net income,” Joselito F. Santos, deputy chief operating officer of Ortigas and Co., said in a press briefing.
Mr. Santos said booked sales from the Ibiza tower of its Circulo Verde development in Quezon City would be recorded this year.
Additional revenues are also expected from a 10,000-square-meter (sq. m.) BPO building in Quezon City and higher lease income from the Greenhills Shopping Center.
Leasing revenues and condominium sales account for 70% and 30% of total revenues of Ortigas and Co., respectively. The commercial center accounts for 80% of leasing revenues, with the rest from BPO buildings.
“We are under pressure from our brokers to build more BPO [buildings],” he said, adding that the firm is planing to launch two 10,000-sq. m. call center buildings late this year.
The 79-year-old property developer yesterday launched its P700-million Seville Residences project.
The 19-storey project is the third of 15 residential condominium buildings in the P15-billion Circulo Verde development.
The 140-unit Seville Residences, which is expected to sell for a total P900 million, will be turned over to buyers by 2014.
Seville Residences targets start-up families and “empty-nesters” through its 44-sq. m. one-bedroom units worth P3.7 million-P4.3 million; 69-sq. m. two-bedroom units worth P6.1 million-P6.8 million; and 95-sq. m. three-bedroom units worth P8.4-million-P9 million.
After Seville Residences, the next tower, the 23-storey Aragon, will be launched in January.
“There is a lot of liquidity to spend more for real estate. People just took caution,” Mr. Santos said. -- Neil Jerome C. Morales