Posted on May 10, 2015 09:58:00 PM [
BusinessWorld Online ]
FILINVEST Land, Inc. (FLI) is
returning to the bond market this year to fund the development of projects that
will further boost the Gotianun-led property firm’s recurring profit.
“We will probably [issue bonds] in the
latter part [of the year],” FLI President and Chief Executive Officer Josephine
Gotianun-Yap told reporters last Friday, but declined to provide a specific
amount that will be raised from the debt issuance.
The real estate firm increased its
capital expenditure budget to P24 billion this year from P15 billion in 2014.
The company is targeting to triple its gross leasable area to 966,000 square
meters by 2019 from 343,000 last year.
The last time FLI tapped the bond
market was in November last year when it raised P7 billion from the issuance of
seven-year fixed-rate bonds due 2021 and 2024.
The property developer sees recurring
income accounting for as much as 40% of the business by next year -- compared
to 30% in 2014 -- when it starts to feel the impact of the commercial and
office projects launched in previous years, Ms. Yap said.
IN THE PIPELINE
This year, FLI plans to launch P16.2
billion worth of residential projects, including a 20-hectare predominantly
lots-only development along Daang Hari Road.
Average lot cuts for the project are
pegged at 350 square meters and will be sold at a price of roughly P45,000 per
square meter, generating between P2 billion and P2.5 billion in sales, Ms. Yap
said.
Next year, FLI will start the
construction of its mixed-use development in Cubao called Activa, which sits on
a 1.3-hectare property at the junction of the Metro Rail Transit Line 3 and
Light Rail Transit Line 2, two of the country’s busiest mass rail systems.
Activa will be home to two office
towers serving business process outsourcing firms, a residential building, a
small office-home office development and a hotel under a new brand owned by the
Filinvest group, Ms. Yap said.
Another project that will be launched
next year is a project located at the site of the former Philcomcen building in
Ortigas.
“That’s primarily office,” Ms. Yap
said.
FLI won the bidding held by state-run
Government Service Insurance System for the Philcomcen property in December
2013.
FLI is a subsidiary of Filinvest
Development Corp., the holding firm for the Gotianun family’s businesses in
banking, hotel, power, and sugar farming and milling. -- Krista Angela M.
Montealegre
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