Posted on 09:36 PM, July 19, 2010 [ BusinessWorld Online ]
BY NEIL JEROME C. MORALES, Reporter
ROCKWELL Land Corp., the Lopez group’s property arm targeting the high-end market, wants revenues to rise by almost half to P5 billion this year.
THE VIEW from the dining area of a two-bedroom Z-loft model unit of The Grove by Rockwell -- groverockwell.multiply.com
THE VIEW from the dining area of a two-bedroom Z-loft model unit of The Grove by Rockwell -- groverockwell.multiply.com
Likewise, net income is targeted to increase by a quarter to P800 million, carried by the upbeat economy, an executive said.
The property developer will launch two new high-rise residential towers this year to cater to increasing demand while looking for more land bank and its first foray into leisure development.
“We plan to end the year with P5 billion in revenues from P3.5 billion last year,” Valerie L. Soliven, vice-president for marketing and sales of Rockwell Land, told BusinessWorld.
“The net income is about P800 million,” Ms. Soliven said. Rockwell Land recorded a net income of P633.5 million last year.
“Aside from strong sales take-up of The Grove and Edades, the [Power Plant Mall] continues to grow. They are targeting double-digit growth,” Ms. Soliven said.
For the rest of the year, the company will launch two new towers in the 5.5-hectare, P10-billion The Grove on C-5 Road in Pasig.
“We will soft launch Tower C and D this July and already there is a letter of interest equivalent to about almost P500 million,” Ms. Soliven said.
Towers B and C of The Grove, which were launched in late 2008, were already 82% sold. The Grove will have six high-rise towers housing a total of 2,000 units.
“In the midterm, we are staying through to [the high-end] segment of the market. Rockwell has always known to be high-end,” Ms. Soliven said.
Their latest project, the 600-unit Edades in Rockwell Center, has sold about 40% of the 500 units open for selling. High-end condominium units are worth P120,000-150,000 per square meter (sq. m.) and P88,000-95,000 per sq. m. for the upper-middle market.
The company added that land banking is also set for this year.
“We are in the market to buy land,” she said, adding that Rockwell wants to acquire 10- to 15-hectare properties.
To date, Rockwell Land has two hectares left in the 15.5-hectare Rockwell Center in Makati, and 5.5 hectares in Pasig City.
Funding for land banking and construction will be a combination of internally generated funds and borrowings, with a possible listing in the next five years.
Meanwhile, Ms. Soliven said Rockwell wants to start a leisure development project.
“We are open to leisure projects outside of Metro Manila,” Ms. Soliven said.
In three years, the company wants to develop a beach and golf leisure project potentially in Batangas, Bataan or Bohol.
“We already have close to 3,000 residents at Rockwell Center who can afford leisure projects,” Ms. Soliven added.
Rockwell Land Corp., which was set up in 1995 after the shutdown of the thermal power plant of the Lopez group, is 51% owned by the Manila Electric Co. and 49% by Lopez-led First Philippine Holdings Corp.
Flagship project Rockwell Center is a self-contained, mixed-use community consisting of seven high-rise residential towers, three office buildings, a shopping mall, a city club, and a leading business graduate school.
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