Filinvest resumes ‘rapid expansion’ with P21.2-B capex
Gotianun-led conglomerate Filinvest Development Corp. (FDC) plans to jack up its capital outlays this year to P21.2 billion, part of which will fund new ventures promoting ecological sustainability, a key priority for the group.
This year’s capital expenditure (capex) budget is 78-percent larger than last year’s spending of P11.9 billion, reflecting the group’s intention to resume a rapid expansion after the disruptions caused by the COVID-19 pandemic in 2020.
During the company’s stockholders meeting on Friday, FDC vowed it would to align the group’s investments and sustainability commitments with the United Nations Sustainable Development Goals, amplifying current initiatives and partnerships already giving special focus on these goals.
“While prospects for 2021 remain uncertain, we are no stranger to volatility. We continue to plan with agility and we keep our focus on moving forward with a clarity of purpose and passion. We constantly remind ourselves of FDC’s vision to empower Filipinos to attain their dreams, with a mission focused on the underserved markets,” FDC president and chief executive Josephine Gotianun-Yap said in her report to stockholders.
About a quarter of the capex is slated for investments in new ventures including the eco-sustainable space. The balance is for the real estate business.
Gearing for a postpandemic economic recovery for the country and its portfolio of businesses, Gotianun-Yap said FDC’s foremost and basic strategy was to build scale and leverage on the group’s strong foundation, organization and franchise. The real estate business, comprised of listed company Filinvest Land, Inc. and Filinvest Alabang, Inc., has an extensive landbank of close to 1,900 hectares of raw land and over 580 hectares of prime commercial land for development. Its investments in district cooling, sewage treatment, water recycling plants and smart city initiatives support FDC’s goal to build sustainable cities and communities. The focus to expand its recurring income base, to include logistics warehouses and coworking and coliving products on top of the traditional office buildings and retail spaces, is also in response to a need to accelerate e-commerce and address new office trends that became more pronounced during the pandemic.
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