MANILA -The property arm of Consunji-led conglomerate DMCI Holdings amassed a nearly 100-hectare landbank in Luzon amid plans to diversify into leisure and township projects.
DMCI Homes expanded property holdings in Luzon, the most populous island in the Philippines, by about 50 percent to 96.9 hectares after acquiring land in Batangas, Bulacan, Laguna and Pampanga. The builder has a total land bank of 217 hectares, a stock exchange filing on Tuesday showed.
“We recognized a demand for leisure properties and saw it as an opportunity to expand our product line,” DMCI Homes president Alfredo Austria said.
DMCI Homes is hoping to ride the revenge travel wave especially as residential sales slow during a period of soaring inflation and interest rates.
Its revenues fell 18 percent to P4.85 billion in the first quarter, partly due to rising cancellations of residential projects.
“By offering quality and best value in this market, we hope to duplicate the success of our core residential line [in leisure],” Austria said. Luis Gerardo Limlingan, head of sales at stock brokerage house Regina Capital Development, said DMCI was positioning itself for the broader recovery of tourism as pandemic-era fears dissipate.
DMCI Homes will launch this month Solmera Coast, an “Asian tropical-inspired” condotel project in San Juan, Batangas, under the DMCI Homes Leisure Residences sub-brand.
Condotel units are sold to homeowners who can rent out their condominium units to guests.
“This business model allows the company to generate revenues from both the sale and rental of the units. Buyers, in turn, can use the unit as a vacation home and receive a share in the rental revenue, which can help offset the cost of ownership,” DMCI said.
Aside from Solmera Coast, the leisure sub-brand will include a Japanese-inspired nature park in Laguna and a mountain resort in Benguet.
“DMCI Homes Leisure Residences is for buyers who want to invest in premium properties that provide one-of-a-kind experiences and attractive returns,” Austria said.
DMCI Homes earlier budged P18.6 billion for its 2023 project development and land acquisitions, up 18 percent from the previous year. It said spending during the first quarter of the year had risen by 27 percent to P4.2 billion, mainly for project development expenses. INQ