Aboitiz unit raises capital outlay by 35% to P5.4B
MANILA, Philippines–The property unit of the Aboitiz group has mapped out a nationwide expansion program and will increase its capital expenditure program for this year.
AboitizLand, a unit of Aboitiz Equity Ventures, said in a statement on Wednesday that it increased its 2014 budget for capital outlays by 35 percent year on year to P5.4 billion to enable it to pursue its nationwide expansion.
“We remain bullish on the property sector and want to enter the market nationally,” said Andoni Aboitiz, AboitizLand president and chief executive officer.
More than 50 percent of the budget has been earmarked for residential development, while the rest will go to industrial and commercial projects.
Apart from its existing land bank in Cebu, Aboitizland is now looking at Mindanao, particularly, residential and industrial developments in Davao City.
In Luzon, after its acquisition of Lima Techonology Center in Batangas, AboitizLand now plans to venture into residential and commercial developments in Mega Manila.
“Our vision is not just to build, but to establish thriving communities where we are located” said Aboitiz.
On top of these, the property developer disclosed that it would also like to consider infrastructure projects under the public-private partnership framework.
“We are looking at more airport and toll-road projects,” added Aboitiz.
In Cebu, AboitizLand has eight residential projects in the pipeline.
It comprises both vertical and horizontal developments and has recently opened phase two of its Pristina North Residences in its integrated community Pristina North.
Through a joint venture with Ayala Land, Aboitizland is also developing a new business district on a 15-hectare lot in Mandaue City, which will be launched in 2015.
As to its industrial estate development, Aboitizland recently expanded its Lima Technology Center to 486 hectares in Batangas, through the acquisition of another 153 hectares, taking advantage of the growing demand for more industrial space in Luzon.
AboitizLand reported a 181-percent year-on-year increase in its bottom line in the first quarter to P121.1 million, mainly due to the 100-percent consolidation of LiMA Land Inc.
