FLI to develop new malls, office space

Gotianun-led property developer Filinvest Land Inc. is building new malls and office buildings to double its leasing portfolio by 2015 and complement the growth of its bread-and-butter residential business.

As part of its expansion plans, FLI has earmarked P20 billion for capital spending this year, half of which will go to residential development, company president Josephine Gotianun-Yap told reporters after the company’s stockholders’ meeting on Friday.

About P7 billion was budgeted for the construction of new office buildings and malls while the balance of P3 billion would be for landbanking.

This year’s capital spending marks a significant acceleration over last year’s actual spending of P11 billion.

Banking on the country’s robust economic growth prospects, FLI expects to grow residential sales by 15-20 percent this year and boost revenues at the same pace, Yap said.

“We will be introducing more product lines and cater to the ever changing lifestyles of the urban Filipino but at the same time keeping our focus on core competencies and brand strength —affordable and middle-income housing to the majority of the population,” Yap said.

This year, FLI plans to bring to the property market 12 new projects and additional phases of existing projects.

Revenues from residential development account for about 60-70 percent of the company’s annual net income while the remaining 30-40 percent comes from leasing.

Yap said FLI was heavily investing in office and retail property to boost its recurring income.

Leasing contributed P1.8 billion to FLI’s net income in 2012.

“For our retail portfolio, FLI is expanding the Festival Supermall at Filinvest City by another 110,000 square meters, bringing the total gross floor area (GFA) to 310,000 sqm and maintaining its position as the biggest mall in south Metro Manila,” Yap said.

FLI will also start constructing two malls—one in Tagaytay City and another at the Princeton Heights residential project in Cavite.

Both malls will start construction this year and targeted for completion by 2015.

The Tagaytay mall will add 30,211 sqm of GLA while Princeton will add 18,652 sqm. Another mall, Festival Supermall Cebu, will add 35,231 sqm by 2016.

The new mall pipeline of 133,068 sqm will bring FLI’s total retail portfolio to 268,231 by 2016. Retail developments are meant to complement FLI’s residential projects, she said. Doris C. Dumlao