By MST
Business | Posted on Mar. 21, 2013 at 12:01am
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manilastandardtoday.com ]
Eton
Properties Philippines Inc., the delisted property unit of business tycoon
Lucio Tan, plans to increase the contribution of rental income to 30 percent to
50 percent of total revenues over the next five years to reduce earnings
volatility.
The LT Group
said in a filing with the Philippine Stock Exchange the property unit would
build and lease at least one office building over the next five years in order
to achieve the target.
Eton plans to
build business process outsourcing buildings either in Eton City in Sta. Rosa,
Laguna, Eton Centris in Quezon City or in the Makati central business district.
“LT Group
believes that this will complement Eton’s overall growth strategy by providing
recurring cash flow to support its development capital expenditure requirements
and driving demand for its master-planned community residential offerings,” LT
Group said.
Eton has five
office buildings with 50,000 square meters of leasable space, accounting for 10
percent of the total revenues.
The property
company hopes to increase the rental income to 20 percent of revenues with the
addition of another 80,000 square meters of leasable space for BPO companies by
the end of 2013 and the completion of two more BPO buildings in Eton Centris in
Quezon City.
The LT Group
reported that Eton’s high-end projects posted reservation sales of P1.32
billion in 2012 while the middle-income projects booked pre-sales of P1.97
billion. Sales of affordable projects registered reservation sales of P790
million last year.
Eton, through
its own holdings and those of affiliates, has access to an extensive landbank
in central locations in the Philippines.
The LT Group
has one of the largest land banks, which gives “asset-light” land acquisition
strategy by acquiring land only as needed for the near- to medium-term
projects, primarily from affiliate members of the Tan companies.
Eton went
public in 2007 through the backdoor listing of Balabac Resources and Holdings
Corp.
After more
than five years of operations, Eton launched 47 projects. Its portfolio of
launched and completed projects includes residential, commercial, office
projects and township developments.
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