Filinvest Land sets 2017 capex at P20 B
FILINVEST Land, Inc. (FLI) has allotted P20 billion to fund residential and office development projects in 2017, in an effort to hike the firm’s recurring income.
“This will be mixed projects, office and residential. Because we’ve been building up our recurring income, we have a lot of office projects,” FLI President and Chief Executive Officer Josephine Gotianun-Yap told reporters after the company’s annual stockholders” meeting in Ortigas on Friday.
The Gotianun-led real estate developer targets to launch 16 residential projects spread out across the country in 2017. Ms. Gotianun-Yap added that they have around 10 buildings currently under construction.
“They are spread across Metro Manila, in Quezon City, Alabang, and Makati. We’re also strong in the Visayas area, Iloilo, Dumaguete, Cebu -- of course -- , and then in Davao. We also have a couple of projects in the Mindanao area, in Koronadal and General Santos,” Ms. Gotianun-Yap said.
The company initially announced that it will be ramping up efforts to triple its recurring income portfolio in five years. In 2015, FLI completed three new buildings which started to generate revenues the following year. Meanwhile, 2016 saw the completion of two projects in the Bay area -- Filinvest Cyberzone Bay City 1 and 2 -- bringing the company’s portfolio to 312,000 square meters (sqm).
This year, FLI is set to complete three new buildings: Vector 3 and Filinvest Axis 1 in Alabang, and Cyberzone Cebu Tower 2 in Cebu City, which translates to 103,000 sqm. The new building projects will bring the company’s total office gross leasable area (GLA) to 414,000 sqm by the end of 2017.
“Now in Northern Luzon, we’re doing the Clark Mimosa project which will be office [space]… we’re now in the process of [the] planning stage for the mall there,” Ms. Gotianun-Yap said.
The mall in Clark Mimosa will occupy a total area of 50,000 sqm but is expandable, Ms. Gotianun-Yap added.
The 200-hectare Clark Mimosa estate has been leased to FLI and parent company Filinvest Development Corp. by the Clark Development Corp. It will develop, manage, and operate the property.
Ms. Gotianun-Yap said four malls are targeted for completion by this year, namely Main Square in Bacoor, Cavite; Fora Mall in Tagaytay; II Corso in Cebu; and the expansion of Festival Mall in Alabang. The four malls will add around 100,000 to 150,000 sqm of GLA to FLI’s portfolio, for a total of 285,000 sqm by the end of 2017.
Asked about the outlook for 2017, Ms. Gotianun-Yap noted that the company’s market is quite diverse.
“We’re also all over the country. I think we move to where we feel the market is good,” she added.
FLI booked a net income of P5.35 billion in 2016, on the back of solid growth in rental revenues which rose by 15% to P3.38 billion in the year prior. Consolidated revenues further climbed 7% to P19.5 billion from 2015’s P18.3 billion.
Shares in FLI added two centavos or 1.22% to close at P1.66 on Friday. -- Arra B. Francia