Posted on
July 19, 2013 08:23:44 PM [ BusinessWorld Online ]
ETON
PROPERTIES Philippines, Inc., the real estate developer of Lucio C. Tan-led
conglomerate LT Group, Inc., will focus on commercial and office projects in
the next five years in order to diversify the unit's revenue stream, according
to a statement attached to the parent's disclosure on Friday.
LT Group said the focus involves development
of more commercial centers, retail hubs, business process outsourcing (BPO)
offices and hotels to "cater to a significantly growing retail, leisure
and outsourcing market…in major key growth centers in Metro Manila".
"For
2013 and the next five years, we are focusing our efforts on growing our
leasing business to take advantage of the significant prospects in the leisure,
retail and BPO market in the country," the statement quoted Danilo A.
Antonio, chief operating officer of Eton Properties, as saying.
"We are
excited to introduce novel concepts to grow our property portfolio and
recurring income that will sustain the company's growth for the long
term," he added.
"Alongside
the shift in business directions, we shall be realigning our organizational
structure and business processes to better serve our target markets."
LT Group said
Eton's new focus will "help the company diversify its revenue stream and
strengthen its position in the industry while simultaneously sustaining its
residential development business."
It added that
construction of Eton's residential projects are "in full blast" and
cited "high occupancy and lease rates in our office buildings given strong
demand from the outsourcing industry".
Mr. Antonio
noted that Centris Cyberpod Three in Quezon City -- Eton's sixth BPO office
building -- is set to be completed by yearend. "Given the strong demand
for office space, the building is expected to be pre-leased even before
turnover," Mr. Antonio said.
LT Group
noted that office space business made the "strongest" contribution to
Eton's recurring income.
"Since
the market continues to be strong, we are considering some adjustments in the
Eton Centris master plan to accommodate future demand for office space and
strengthen our BPO presence", Mr. Antonio said.
Eton is also
upbeat on its retail and commercial businesses, as the company plans to develop
a new lifestyle mall within Eton Centris in Quezon City.
Besides this,
LT Group said that another commercial strip will open in Eton City -- the
company's flagship township project in Sta. Rosa, Laguna. The project, which is
called Village Walk, will include restaurants and bars, boutiques, convenience
stores and service-oriented shops.
Eton also
plans to develop leisure projects, citing the government' thrust on
tourism-related projects. "There is significant demand from the leisure
and retirees market that we need to address," Mr. Antonio said. “From a
developer standpoint, we see the potential of this market that continues to
expand.”
Last month,
Mr. Antonio said Eton plans to spend up to P10 billion in the next four years
for its existing and new projects. For this year alone, the company planned to
spend up to P4 billion to complete existing projects. Projects that are slated
for completion are West Wing Villas in Quezon City; 8 Adriatico Condominium in
Manila and 68 Roces luxury residences in Quezon City, he had said then.
Eton
Properties, whose net income plunged 94.27% to P42.04 million last year from
P733.29 million in 2011 as it had yet to complete its projects, delisted in
last Jan. 2 after it decided not to meet the 10% minimum public ownership level
required by the bourse. It then had a 5.65% public float.
Net income of
its listed parent, LT Group, surged 54% to P5.80 billion in the first quarter
from P3.78 billion in the same three months last year as revenues jumped 13.77%
to P17.685 billion from P15.544 billion, outpacing a 2.43% rise in cost of sales
to P7.156 billion from P6.986 billion.
LT Group
shares lost 50 centavos or 2.08% to close at P23.50 apiece on Friday from P24
each on Thursday. -- C. A. M. C. Feliciano
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