Vista Land expanding in provincesBy Doris C. Dumlao |Philippine Daily Inquirer
The Villar group is expanding its property businesses by building new shopping malls, residential projects and business process outsourcing (BPO) office space across the country.
Residential arm Vista Land & Lifescapes Inc., which announced Thursday an 18-percent year-on-year growth in its first-half profit to P2.6 billion, plans to expand its presence in the provinces.
About 42 percent of the revenue booked by Vista Land in the first semester came from provincial arm Communities Philippines, up from a share of 34 percent in the same period last year. This segment sells housing units worth below P3.5 million.
“Our provincial expansion is continuing strongly,” Vista Land president Manuel Paolo Villar said in a briefing, adding that it was possible that this segment would eventually account for the bulk of the firm’s earnings.
The profit growth in the first semester was fueled by a 20-percent rise in revenue to P9.7 billion for the period.
Sales remained strong, growing by 18 percent to P23.6 billion in the first semester. The company expects full-year sales to hit P46 billion. Demand from overseas Filipinos continued to account for the bulk of Vista Land’s business.
“Demand for housing is expected to remain robust, particularly in the affordable price segment which is dominated by our Camella brand.” “There is no oversupply in housing and our aggressive plans to expand countrywide remain unchanged,” he added.
The company’s cash position increased by 57 percent during the period to P11.83 billion, buoyed by a fresh credit facility from two banks.
“It is noteworthy that we have been able to borrow on much improved terms compared to a few years ago. During the second quarter, we raised P6 billion at an interest rate of 5.75 percent per year with a tenor of five years, compared to more than 7.27 percent last year. I believe this reflects the banking community’s increased confidence in Vista Land,” said company chief financial officer Ricardo Tan Jr.
“We now have residential housing developments in 31 provinces and 64 cities and municipalities around the country,” said Tan.