Posted on July 01, 2015 10:41:00 PM [ BusinessWorld Online ]
By Daphne J. Magturo, Reporter
FILINVEST Land, Inc. (FLI) yesterday said it won the bidding for a 19.2-hectare lot in Cebu’s South Road Properties for P6.76 billion, joining two other property behemoths -- Ayala and SM groups -- that are developing portions of the 300-hectare economic zone.
Filinvest Land, Inc. Chief Executive Officer Lourdes Josephine Gotianun-Yap (center) gestures during a press briefing in this file photo. The listed builder announced on Wednesday it bought a 19.2-hectare lot within an economic zone in Cebu. -- WWW.INTERAKSYON.COM
“We would like to inform you that Filinvest Land, Inc., including its subsidiaries and affiliates, won in the bidding conducted by the Cebu City Government for Lot No. 1 (Consolidated Portions of Lots 7 and 17) containing an area of 192,385 square meters (sq.m.), more or less, located at South Road Properties, Cebu City,” the Gotianun-led firm told the Philippine Stock Exchange yesterday.
FLI will own and develop the property, along with its office development subsidiary Cyberzone Properties, Inc., its Central Business District affiliate Filinvest Alabang, Inc. and “other possible strategic partners,” according to the disclosure.
The listed builder said 70% of the property will be developed into an office and retail strip, while the remaining 30% will be for residential use.
“The new development will complement the ongoing City di Mare project of FLI in [South Road Properties],” the disclosure read.
City di Mare is the group’s 50.4-hectare mixed-use development within the sprawling Cebu ecozone, with residential, lifestyle, and retail components.
FLI’s news came a day after a team-up of SM Prime Holdings, Inc. and Ayala Land, Inc. announced having bagged a separate deal to jointly develop a 26.34-hectare lot, also within South Road Properties, for P10 billion.
That Cebu property venture marks the two erstwhile rivals’ third partnership that will see them combine their “financial muscle, technical expertise and real estate experience.”
According to its Web site, the City of Cebu owns and developed South Road Properties, through a ¥12-billion overseas development assistance package from the Japan Bank for International Cooperation.
The property was initially conceptualized to host export-oriented light industries, but evolved into a mixed-use area. It was granted a Special Economic Zone status by the Philippine Economic Zone Authority, which meant it can have agro-industrial, recreational, banking, investment, financial center and commercial components.
FLI increased its capital expenditure budget to P24 billion this year from P15 billion in 2014 with plans to launch P16.2 billion worth of residential projects.
The company wants to triple its gross leasable area to 966,000 sq.m. by 2019 from 343,000 sq.m. last year.
By next year, recurring income is expected to account for as much as 40% of FLI’s business compared to 30% in 2013, as it starts to recognize the contribution of commercial and office projects launched in previous years, FLI President and Chief Executive Officer Lourdes Josephine Gotianun-Yap said on May 8.
Shares in the company gained two centavos or 1.08% to end Wednesday trading at P1.88 apiece.