Phinma hikes property capex

(The Philippine Star) | Updated April 20, 2015 - 12:00am

MANILA, Philippines - Real estate developer Phinma Property Holdings Corp. is increasing its spending program this year due to renewed interest and demand seen for condominiums in the country.

Willy Uy, president of the property arm of investment firm Phinma Corp., said the company is hiking its capital expenditures (capex) this year to P1.8 billion from last year’s P800-to-P900 million.

“In Metro Manila, there was so much competition. There was oversupply, but right now it seems demand is picking up again plus we have this new market. This overseas market which we’ve never tried before and there’s a lot of interest right now,” Uy said.

“We just came from a US roadshow and we’ve been very successful. So this is the first time we are going overseas because a lot of these Fil-Ams are looking at a place to stay when they come here. Another reason is they find it cheap also,” he added.

Phinma Properties is primarily engaged in socialized housing and affordable condominium projects.

Uy said this year’s higher capex budget would be used mostly to start construction of six projects.

He said projects to be launched this year would add 4,000 units to the company’s affordable market offering and another 3,000 units to the socialized segment upon its completion over the next two to three years.

Last year, Phinma Properties said the temporary oversupply of residential condominium units experienced from previous years began to taper off and return to more rational levels.

As a result, the company reported a seven percent year-on-year revenue increase to P1.1 billion, with net income also rising to P36.3 million from P15.3 million the previous year.

“We are looking good this year,” Uy said.

Phinma is the firm behind Bistekville housing project that offers around 1,100 residential units through row houses and three-story condominiums in Quezon City.

Phinma Properties is part of the Phinma Group, a conglomerate which is also into power (Trans-Asia Oil and Energy Development Corp.), steel fabrication (Union Galvasteel Corp.), educational institutions (Phinma Education Network composed of Araullo University, Cagayan de Oro College, University of Pangasinan and University of Iloilo) and hotels (Microtel).
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