Posted on February 05, 2012 09:40:26 PM [ BusinessWorld Online ]
“Despite fears of over-expansion in the supply of residential condominiums, our vertical projects were well received by the market and this has encouraged us to develop additional phases of existing projects,” said Manuel Paolo A. Villar, Vista Land president and chief executive in a statement released over the weekend.
Vista Land will expand two existing projects for P3 billion, while six new projects worth P7 billion are set to be launched, Ricardo B. Tan, Jr., Vista Land chief financial officer said in the same statement.
Vista Land’s condominium projects will complement developments in the horizontal residential sector, in which the company has heavily invested in the past years, Mr. Villar noted.
This comes after the company announced last month that it will be launching 32 residential subdivision developments worth P32 billion this year to cater to the OFW market.
“[Medium-rise buildings] share similarities with horizontal residences and are a logical alternative for our buyers, many of them OFWs who consider owning a home a top priority,” Mr. Tan said.
Vista Land’s existing medium-rise projects include Pinecrest and Madison in Cubao, Quezon City, Marfori and Presidio at Lakefront in Sucat, Paranaque City, Pacific Residences in Taguig City, and Northpoint in Davao City.
Further, Vista Land is also looking to acquire five new lots this year for its high- or medium-rise residential projects, Mr. Tan added.
A fourth-quarter report by property consultancy CB Richard Ellis Philippines last year has tagged mid-income condominium developments as a growing sector, citing work proximity and easier credit as main factors for these projects’ attractiveness to a growing middle-class segment.
At present, Vista Land operates five property brands: Brittany, which sells house-and-lot units for as much as P9 million each; Crown Asia for units worth P3.5 million to P9 million; Camella Homes for units worth P3.5 million and below; Communities Philippines, which sells Camella Homes projects in the provinces, and condominium arm Vista Residences.
Last year, the Villar-led firm launched a total of 23 projects valued at P21 billion, an earlier report showed.
Vista Land, owned by the family of Senator Manuel B. Villar, Jr., has so far delivered about 200,000 units to buyers since 1977 according to the company’s Web site.
For 2012, Vista Land will be spending more than the P11 billion it allotted for capital expenditures last year, with improvements aimed for its four development hubs in Luzon.
The property developer hiked its nine-month net income last year by 20% to P2.16 billion from P2.06 billion in 2010 on the back of record sales and completion rates from its affordable housing segment Camella Homes according to its latest financial statement.
Real estate revenues jumped 21% to P9.90 billion versus P8.20 billion, while total cost and expenses for the January to September period last year grew by 22.20% to P7.840 billion from P6.416 billion two years ago.
Vista Land shares fell by 0.32% to P3.13 last Friday from P3.14 at its previous close. -- Franz Jonathan G. de la Fuente
_____________________________________________________________
