Posted on November 01, 2015 10:39:00 PM [ BusinessWorld Online ]
ROBINSONS Land Corp. (RLC) is setting aside as much as P17 billion in
the current fiscal year to expand its Philippine business, with the
Gokongwei-led property developer seen ramping up its residential launches.
“Our capex (capital expenditures) for the Philippines is estimated at
P16-17 billion for fiscal year 2016 excluding China,” Robinsons Land President
Frederick D. Go told reporters last Thursday. The company’s fiscal year starts
in October.
Mr. Go did not elaborate on its capital spending plan for its maiden
venture overseas. The real estate firm disclosed last week it acquired land use
rights to an 8.5-hectare (ha) property in Chengdu, China.
Bulk of the programmed capex will be allocated for the construction of
shopping centers, residential buildings and office projects.
The property firm would unveil five new malls in Tagum, Davao del
Norte; Iligan City; Jaro, Iloilo City; General Trias, Cavite and Cebu -- its
third in the city, Robinsons Land Vice-President for Leasing Lourdes T. Alano
had said. The company would also expand its malls in Ilocos Norte and Tacloban.
The expansion program will increase its gross leasable area (GLA) by
around 11% from 1 million square meters this year.
MORE RESIDENTIAL PROJECTS
RLC remains cautious on the residential market, but this segment will
account for a larger share of the business the current fiscal year. The company
is launching Westin Residences in Ortigas Center, a 500-room hotel residences
project that will generate around P6 billion in sales.
“We’ll have significant residential contribution this fiscal year
primarily because of a lot of launches. In fiscal year 2015, we didn’t launch
anything,” Mr. Go said.
Asked to comment on its fiscal year 2015 performance, Mr. Go said:
“Quite good. [In] the first three quarters, we did good.”
Robinsons Land’s consolidated net income attributable to equity holders
in the Oct. to June period climbed 12.2% to P4.35 billion on the strength of
its commercial and residential segments.
By 2019, the real estate firm is aiming to double its net profit from
the P4.7 billion pocketed in 2014, anchored on the expansion of its
residential, shopping mall, office and hotel businesses.
Robinsons Land is part of JG Summit Holdings, Inc., which has interests
in Universal Robina Corp., JG Summit Petrochemical Corp., CP Air Holdings,
Inc., and Robinsons Bank Corp. The conglomerate also holds stakes in Philippine
Long Distance Telephone Co. and Manila Electric Co.
Shares in Robinsons Land added 35 centavos or 1.16% to close at P30.60
apiece on Friday. -- Krista Angela M. Montealegre
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