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Philippine Estates 2014 capex to come in at P250M

Posted on October 12, 2014 09:09:00 PM [ BusinessWorld Online ]

PHILIPPINE ESTATES Corp. (PHES) on Friday said its estimate for 2014 capital expenditure is about P250 million, as it pursued two joint ventures with Ayala Land, Inc.

"We are completing our projects right now, so for 2014 our capital expenditure might reach P250 million," PHES President Elvira A. Ting said after the company's annual shareholder meeting.

She said the company aims to launch its residential subdivision project in General Trias, Cavite by mid-2015 - a five-to-six-year joint venture with Amaia Land, the affordable housing arm of Ayala Land.

Both parties signed a memorandum of agreement last year for the development of the 15-18-hectare PHES property in the area, as part of the 40-hectare Amaia Scapes affordable single detached homes project. The remaining parcels of land for the project are controlled by various parties.

Ms. Ting added that the company expects to recognize revenues starting next year and that site development is already underway.

Also in the pipeline is the development of an estate in Valenzuela City with Avida Land, another unit of Ayala Land. It will have condominiums, upscale housing, and commercial components.

Around half of the 60-hectare property was developed into an industrial park, with PHES contributing around eight hectares.

"A portion [of the industrial park] was already sold to locators," Ms. Ting said. "We entered into an agreement with Avida Land for the remaining 20-25 hectares."

"We're just waiting for the other companies to compete the cleanup [of their respective properties]. The memorandum of agreement is in place, so we hope if the other companies can settle it within the year or within the next six months, then the project is a go," she added.

Other ongoing and future projects include the Jaro Grand Estates, a 100-hectare master-planned development in Iloilo province; a 60-townhouse subdivision in Lapu-Lapu City, Cebu primarily catering to the foreign market; a two-hectare commercial area, also in Cebu; the 10-hectare Aureville, its third residential community in Iloilo City; and the fifth phase of Pacific Grand Villas, the expansion of its residential village in Lapu-Lapu City.

The company is also looking at potential locations in Ortigas, Malate, and Quezon City, as well as another site in Cebu.

PHES narrowed its first-half net loss to P14.695 million from P19.44 million a year earlier, while gross revenue rose to P19.68 million from P17.18 million.

Shares in the company were unchanged at 38 centavos on Friday. -- Daphne J. Magturo

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