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Robinsons Land allots up to P17-billion capex

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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