Primex sees sustained growth

Property developer Primex Corp. is looking to take advantage of increasing demand in the office and hotel sectors to sustain its growth this year.

“We are aggressively gearing up for more projects and developments where we conservatively foresee sustainable growth in the next five years,” said Primex chairman and president Ernesto Ang.

“With our portfolio of prime commercial and residential (property) acquired decades ago at low prices and still booked at cost on our balance sheet, our company is in a good position to enjoy sustainable growth for many years to come,” he added.

Primex director Karlvin Ang pointed out the generally recognized shortage of supply in both the office and hotel sector.

He noted that the strong growth in the business process outsourcing industry is expected to boost demand for office, retail spaces, and foreign staff accommodation facilities.

The company’s plans, according to the younger Ang, are “in line with growth sectors where strong demand is seen in prime areas.”

“For example, we are already in the planning stages of building a world-class mixed-use development that will include Grade A offices, a hotel and serviced residence operation in the Ortigas/Greenhills area,” he explained. “We have received strong interest from local and foreign hotel operators for this project, and will carefully consider our best options as we prepare ourselves for exciting opportunities in business and leisure tourism.”

The younger Ang also shared that they have already drawn attention from other leading developers to jointly develop the rest of its extensive landbank in other locations that have growth potential.

Primex’s flagship project, The Stratosphere, had seen high demand from locals and foreigners and is already sold out. The skyscraper, located at the heart of Salcedo Village in Makati, is expected to be operational this year with a modern condotel among its innovative features for its residents.

Meanwhile, the strong balance sheet of Primex places the company in a comfortable position to pursue its planned property projects.

“We have prepaid all group-wide debt early this year, so funding of future projects will not be an issue at all,” said the older Ang.

The publicly-listed property company ended 2016 strongly with a net income of P185.1 million, up 181 percent from a year ago. Primex also surpassed its target to double earnings from the previous year.

Consolidated revenues grew 165 percent year-on-year to P589.8 million in 2016, due largely to robust sales from both the parent and its subsidiary, Primex Realty Corp.