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Sta. Lucia Land may double its capex in 2016

Posted on October 15, 2015 08:04:00 PM

STA. LUCIA LAND, Inc. may boost its capital spending after completing its maiden bond issuance, with earnings expected to grow by nearly half this year, a company official said.

Sta. Lucia Chief Financial Officer David M. dela Cruz told reporters the real estate firm may spend as much as P4 billion next year, doubling its P2 billion projected capital expenditure this year.

The capex budget for 2016 will depend on how much the company can raise from a proposed P5-billion issuance, which has been pushed back to December, Mr. dela Cruz said.

Sta Lucia will earmark the capex to fund new project development and increase its land bank, he added.

The property company is expanding its presence in emerging urban districts in Iloilo, Davao, Pasig, Bulacan, Baguio, Tagaytay, Tarlac, Cavite, Laguna, Batangas, Rizal and Quezon.

“Demand for residential properties in emerging cities outside Metro Manila will always be sustainable,” Mr. dela Cruz said.

The developer, through its subsidiary Sta. Lucia Homes, is also targeting to build 3,000 houses in the next 3-5 years, he said.

Sta. Lucia will construct houses on previously sold subdivision lots collectively developed by the company and its parent firm Sta. Lucia Realty and Development, Inc.

With the Sta. Lucia Group developing over 200 subdivision projects over the past 40 years, including residential estates surrounding 10 golf courses and country clubs, Sta. Lucia Homes has a potential market of roughly 60,000 sold lots, Mr. dela Cruz.

Net profit may reach “under P800 million” by year end, Mr. dela Cruz said. A net income of P800 million represents a growth of 46% from the P548 million registered in 2014.

Sta. Lucia may tap the equity market after it completes its up to P5-billion maiden bond offering this year, he said.

The company was considering reviving this year an aborted follow-on offering, but it failed to take off due to adverse market conditions.

Sta. Lucia lost a centavo or 1.37% to 72 centavos apiece on Thursday. -- Krista Angela M. Montealegre  

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