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DMCI Homes allots P8 billion for housing projects this year

Posted on June 03, 2012 10:13:16 PM [ BusinessWorld Online ]
THE PROPERTY arm of DMCI Holdings, Inc. is looking to spend some P8 billion to build housing mostly in Metro Manila this year, an official said late last week.
“This year, in terms of capex, I think we’re looking to spend roughly around P8 billion. This amount will be funded by a combination of internally-generated funds and from financial institutions,” Alfredo R. Austria, DMCI Project Developers, Inc. (DMCI Homes) president, said in a chance interview on Thursday.
This higher than last year’s amount, Mr. Austria said.
DMCI Homes had earlier bared plans to build a high-rise condominium in Ermita, Manila and three in Quezon City this year, as well as two mid-rise complexes in Taguig and Las Piñas worth a total P18 billion, earlier reports show.
On top of these, two more new residential projects may also be launched this year, with one likely to be located in Baguio City, Alma A. Florendo, DMCI Homes vice-president for project development said in a separate interview.
In terms of take-up, DMCI Homes said it is looking to serve the growing Filipino middle-class, which is currently benefitting from the robust economy.
“There are a lot of opportunities in the mid- to high-income sector at present. The economy is doing well and we feel that there is a certain segment of the mid- to high-income sector that is still underserved,” Mr. Austria said.
“Based on the needs of that particular segment, and given our resources and strengths as a company, we feel there is a fit if we serve that market,” he added.
In the medium- to long-term, the company may venture into other property sectors such as commercial leasing and hotel development after it strengthens its core residential business.
“We’re really focused on residential projects. We’d like to make sure first we do our projects very well,” Mr. Austria said.
The company’s land banking initiatives for the year, meanwhile, are ongoing, with certain properties in Taguig City being identified as possible acquisitions, Mr. Austria said, declining to elaborate.
Last March, DMCI Homes acquired three lots along Sheridan St., Mandaluyong City from Swift Foods, Inc. for P500.22 million.
This boosted the developer’s land portfolio by an additional 11,116 square meters.
DMCI Homes saw its first quarter net income surge by 81% to P405 million from P224 million a year ago due to 51% uptick in housing sales after the completion of pre-sold units in Metro Manila.
The developer’s parent, DMCI Holdings booked a net income of P2.67 billion for January to March, up 17.62% from P2.27 billion a year ago, which is significantly slower than the 61% rise the company realized in the same period of 2011.
Revenues, mostly from coal sales and construction contracts, rose by 20.35% to P13.01 billion year-on-year, while cost of sales and services grew by 31.19% to P8.79 billion from P6.70 billion in the same period last year.
Shares of DMCI Holdings plunged by 4.49% to P55.35 last Friday. -- F. J. G. de la Fuente
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