Empire East eyes P25B capex for 5 yrs
Property developer Empire East Land Holdings Inc. expects to fork out P25 billion to expand its footprint in the property sector in the next five years.
To date, Empire East has P2.9 billion worth of land inventory, with a total area of 404 hectares.
“This land is not only a commitment to future profitability but also an inspiration to all of us at the company to keep pushing forward with our vision in mind,” Empire East president Charlemagne Yu said in his report to stockholders yesterday.
Last year, Empire East spent P3.38 billion in construction and development activities.
In a chat with reporters after the stockholders meeting, Yu said demand for middle-income residential units remained strong. Including sales of the Manhattan Garden City, reservation sales last year amounted to P14.7 billion.
“We are hopeful that, given the sales that we have in the first quarter, we would be able to sustain the kind of momentum that we had in 2016,” Yu said.
“If you look at 2016, it was very good. This year, the first quarter is showing better results. People are talking about the property bubble but demand is still strong. The middle income sector has always been very vibrant,” he said.
Empire East serves the “broad middle-income” residential market, which refers to those seeking residential units priced between P2 million and P10 million.
Yu said Empire East’s projects had consistently enjoyed strong take-up amid strong competition in the market. He noted that all three of the company’s transit-oriented developments—Little Baguio Terraces, Pioneer Woodlands and San Lorenzo Place—had been nearly sold out. Also sold out are the three clusters of the seven-cluster The Rochester and the inventory of Kasara’s first two towers, Yu said.
A horizontal development in Sta. Rosa, Laguna, The Sonoma, had also performed well alongside its metro-based vertical residential counterparts. “Its lots and house-and-lot packages are almost fully taken up, while commercial units at 1433 West Row, its very own retail strip, are sold out. To date, homeowners are building their respective houses at the site,” Yu said.
The Rochester, Kasara and The Sonoma are the offerings of the company under the urban resort residence category.
“By emphasizing the lifestyle essentials that have made the company’s developments true powerhouses, we have made our portfolio more visible and more personal to our market than ever before,” Yu said.
Going forward, Empire East is confident that Covent Garden and Mango Tree Residences, located in the Sta. Mesa and San Juan City, respectively, will continue to perform well. The company has reported robust pre-selling demand for units in these two projects.
