Anchor Land to start 6 projects this year
Property developer Anchor Land Holdings Inc. will break ground this year for six property projects that will require P35 billion in capital outlays for the next three years.
As part of its portfolio diversification, Anchor Land also expects to triple its recurring revenues to P2 billion annually by 2022 from more than P600 million at present, company chief executive Steve Li told reporters after the company’s stockholders’ meeting last week.
By 2022, Anchor Land’s leasable space would have reached 272,000 square meters, from 89,000 sqm at present.
Li said that by 2020, the company’s recurring revenues would hit P1.5 billion. Upon rising further to P2 billion by 2022, Li estimated that this would track the company’s goal of building a leasable portfolio contributing 20 percent of total business.
Instead of just purely residential development, Li noted that the company was now also into hotel resorts, commercial and logistics property businesses.
This year, the six projects that Anchor Land will start consist of two residential, two office and two logistics/warehousing projects. Li said the projects would be mostly located in Manila and Parañaque.
The P35-billion capital spending will be funded by a mix of internally generated cash and some borrowings, Li said.
Asked about the impact of online gaming industry on the company, Li said this was being mostly felt in its residential projects in Parañaque. But for other areas like Manila, he said residential buyers were mostly end users.
In Manila’s Chinatown, Anchor Land has 10 completed and ongoing developments in the commercial and residential space. It is also a key player in Pagcor Entertainment City where it has five ongoing and completed projects. It also has three projects along a premium stretch of Roxas Boulevard.
To date, rental income comes from the commercial space at Solemare Parksuites, Monarch Parksuites and Oxford Parksuites as well as from warehousing facilities like One Logistics, One Soler, One Shopping Center and Two Shopping Center. It has also started generating recurring revenues from Baylife Venue, which houses the biggest seafood restaurant in the Manila Bay area, and Kanlaon Tower.
“Anchor Land’s solid financial position bodes well for our push into new developments that should strengthen our position in the markets we currently dominate and almost single-handedly revitalized, in the process creating new and viable central business districts,” company chair Stephen Lee said in a report to shareholders.
Net profit in 2018 amounted to P700.63 million from P6.4 billion in revenues.
