Posted on December 29, 2011 08:38:02 PM [ BusinessWorld Online ]
REAL ESTATE firm Vista Land & Lifescapes, Inc. may ramp up capital spending next year as it looks to further improve existing developments south of Metro Manila, a ranking official said late last week.
“We’re working on our capex (capital expenditures) for next year, but it will definitely exceed this year’s,” Ricardo B. Tan, Jr., Vista Land chief financial officer, told BusinessWorld in a telephone interview, declining to state the size of the intended increase.
Earlier this year, the Villar-led firm tentatively earmarked P45 billion for capital spending through 2013, allotting around P11 billion for 2011.
Approximately P8.1 billion it had already been spent for construction, land development, and acquisitions in the first nine months, the company said in November.
Vista Land said the higher spending for next year will be allotted for improvements to its four development hubs: Evia, a masterplanned residential development in the Alabang-Las Pinas area; Lakefront in Sucat, Paranaque City; the Swiss-themed Crosswinds in Tagaytay City, and its mixed-use project dubbed Sta. Elena City, in Santa Rosa City.
These projects are expected to receive a boost with the contract for the P1.96-billion Daang Hari-South Luzon Expressway Link seen to be awarded to contractors next year, Mr. Tan said.
Further, Vista Land may also opt to explore the debt market but only as needed, given the firm’s strong cash position at present.
“Borrowing is also an option, but we have enough cash [now.] We have raised P75 million from notes this year,” Mr. Tan said.
Vista Land launched 19 projects valued at P13 billion in the January to September period. -- Franz Jonathan G. de la Fuente