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
____________________________________________________________
