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RLC takes cautious stance amid huge domestic supply

Published : Wednesday, November 02, 2011 00:00 [ ]

ROBINSONS Land Corp. expects sustained sales next year as it takes cautious stance for its residential segment because of overseas concerns and the huge supply in the market.

Frederick Go, RLC president, told reporters that the company booked P6 billion in pre-sales for its fiscal year ending September, a 27 percent improvement from the previous year.

“For the residential division, we target to sustain our sales level at P6 billion for fiscal year 2012 due to the massive supply that has come to the market in the last two years,” said Go.

“Coupled with the financial uncertainties in Europe and America, we are taking a cautious stance on the residential front,” he added. The Gokongwei-led developer will postpone land-banking initiatives in the meantime because its 420 hectares are enough to carry the company for the next few years. Despite this, RLC will push through with the launch and construction of its residential projects, especially the succeeding phases of its existing developments, to capitalize on robust demand.

For its mall segment, the real estate firm will open four new additional malls next year that will expand its gross leasable area by 10 percent. RLC also is studying the possible construction of three Summit Hotels, its own deluxe first-class hotel brand, in Quezon City, at its Amisa compound in Mactan, Cebu, and at the site of the former Medical City complex in Ortigas Center.

RLC remains upbeat on the tourism industry as its value chain targets to open 30 hotels, either company-owned or through franchisees, in five years. “We strongly believe in the domestic tourism market as well as the potential growth of our foreign tourism markets and we intend to be one of the largest, if not the largest, hotel property owner in the country,” Go said.

RLC’s net income attributable to equity holders rose 18 percent to P3.05 billion in the first nine months of its fiscal year 2011 from P2.59 billion in 2010 driven by its shopping center and real estate business. Its shares added P0.28 to close at P12.46 each on Friday.

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