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Saturday, May 10, 2014

Filinvest Land keeps capex at P20B, plans more projects in affordable, mid-income segments

The real estate company of the Gotianun family is rolling out more projects this year, underscoring its positive outlook on the property sector and the Philippine economy.

During its stockholders meeting on Friday, Filinvest Land Inc (FLI) president Josephine Gotianun-Yap said the company is launching 22 projects, mostly in the affordable and mid-income housing segments, worth a combined P17.5 billion.

“FLI is expanding our affordable brand, not just in the greater Metro Manila area but as well as other areas of Luzon, Visayas and Mindanao,” Yap said.

Last year, the listed firm unveiled 17 projects, comprising of six new mid-rise buildings (MRB) and 11 new phases in existing horizontal projects.

In the first quarter, FLI grew its profit between the 15-20 percent range on the back of consistent sales growth from its mid-rise projects and contribution from its rental and leased spaces, Yap said.

The real estate firm is keeping its capital expenditure budget flat at P20 billion this year. The office and retail leasing businesses account for nearly half of the capex, while the residential segment will receive 30 percent of the total. FLI will spend six percent of its budget to accumulate land.

FLI is building two mixed-use projects in Manila and Makati that will combine its prime investment property portfolio and urban residential product strategy.

Located in Chinatown near Tutuban complex, One Binondo will have residential units, office spaces, hotel, mall and plaza retail areas, and micro-retail stalls. Another development is 100 West in Buendia that will have residential, office and retail components.

To complement its residential business, FLI will expand its recurring business with the gross leasable area of its leasing assets expected to grow by 2.5 times to 870,000 square meters by 2018 from 346,000 square meters last year.

The property firm will build new commercial developments near transportation hubs in Cubao, Ortigas, Buendia, Mall of Asia Complex in Pasay City and Filinvest City.

FLI has a land bank of 2,356 hectares that can sustain 10 years worth of horizontal projects and four to five years worth of vertical developments.

FLI's net income rose 14 percent to P4 billion last year from P3.5 billion in 2012 on the back of a 16 percent growth in total revenues.

FLI is part of the Filinvest group, which is engaged in the business of financial services, hotels, sugar farming and milling, and power generation.

- Interaksyon

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