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GERI aims for 20% profit growth

Posted on June 28, 2012 10:18:58 PM [ BusinessWorld Online ]

LISTED GLOBAL-ESTATE Resorts, Inc., the leisure development arm of Alliance Global Group, Inc., is looking to grow profits by a fifth this year, an official yesterday said.

“Our primary objective this year is to achieve earnings growth of at least 20% over last year, and second, to enhance [our] position as the leading developer of master planned tourism estates,” said Ferdinand T. Santos, Global-Estate Resorts president, during the firm’s annual stockholders’ meeting.

This could mean P264 million in profits from the P220 million the firm recorded in 2011.

To achieve its goal for the year, the company is eyeing P2.5 billion in capital expenditures, to be bankrolled by a mix of internal funds and debt, Mr. Santos said.

As of the first quarter, the company had already completed ten subdivisions covering roughly 190 hectares in the cities of Baguio and Naga and the provinces of Bulacan, Batangas, Laguna, a disclosure to the local bourse showed yesterday.

Reservation sales, which amounted to roughly P1 billion last year, is expected to double, Mr. Santos added.

“[And] we remain upbeat on the long-term prospects of tourism, and of the company. With our focus and expertise, Global-Estate Resorts will truly seal its place as the leading developer of integrated tourism estates, he said.

Global-Estate Resorts is currently developing two township projects: Boracay Newcoast off Aklan, and Twin Lakes in Tagaytay City.

The P15-billion Boracay Newcoast, comprising 14% of Boracay island, is expected to attract 350,000 tourists annually and generate 3,000 new jobs. The development will include hotels, retail, sports and leisure facilities, residential villages, and condominiums, earlier reports said.

Meanwhile, the first phase of the P5-billion, 1,149-hectare Twin Lakes, the country’s first vineyard resort community overlooking Taal Lake, will feature a hotel, spa, shopping center, and residential village. -- F. J. G. de la Fuente  

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