Global amasses P22.6B in property inventoryBy Doris C. Dumlao |Philippine Daily Inquirer
Tourism estate developer Global-Estate Resorts Inc. (Geri) has built up P22.6 billion worth of property inventory in three major projects in Boracay, Tagaytay and Iloilo from which it expects to unlock values to fuel growth in the years ahead.
Geri expects revenues and earnings to grow by at least a fifth this year.
“Twenty percent growth is sustainable over the medium term, as we pursue our long-term objective of becoming the leader in the development of master-planned integrated tourism estates,” Geri president Ferdinand Santos said.
The property company of Tycoon Andrew Tan said this 2013 is expected to post its third straight year of profitability.
Geri used to be Fil-Estate Land until Alliance Global Group took over in 2011.
During the company’s annual stockholders meeting yesterday, Santos announced that reservation sales in the first half reached P5.6 billion. The figure indicated that the company was on track to attaining its full-year goal of P8 billion.
In a briefing after the stockholders meeting, Geri assistant vice president and investor relations officer Alain Sebastian said the P8-billion reservation sales goal for this year was the same as that seen in 2012 and represented a “conservative” target.
To date, Santos reported that Geri had built up a property inventory equivalent to 661,817 square meters worth P22.6 billion:
200,543 square meters in Boracay Newcoast valued at P17 billion;
178,834 square meters in Twin Lakes in Tagaytay and Laurel, Batangas valued at P3.8 billion; and,
282,439 square meters in Sta. Barbara Heights, Ilolio valued at P1.8 billion.
Overall, Geri has over 3,000 hectares of landbank, including the 150-hectare mixed-use leisure and resort development in Boracay.
Geri’s projected capital expenditure for this year is P3.5 billion. The bulk of it will go to the continuous development of its flagship projects.
This is expected to be funded by internally generated funds that came from an earlier increase in the company’s authorized capital. Specifically, affiliate Megaworld Corp. is infusing P5.65 billion into the company by subscribing to 2.5 billion new shares at P2.26 a share.
Last year, the company’s net profit rose by 20 percent to P265 million on the back of a 32-percent growth in revenue to P1.4 billion.
In Boracay, the company launched two additional projects. Oceanway Residences 1 and 2 is a cluster of seven modern residential condominiums. Boracay Savoy Hotel on the other hand is being grooming to be the “Ibiza of Asia.”