Filinvest group cues P25-B capex cache for 2024

Gotianun-led Filinvest Development Corp. (FDC) plans to earmark up to P25 billion in capital outlays this year as it pursues expansion across all its businesses, but particularly real estate, energy and hospitality.

Brian Lim, FDC chief financial officer, told reporters last week that they would fill this up mostly through internally generated funds and debt.

Bulk of the total—60 percent, or around P15 billion—will go to the development of more real estate projects under Filinvest Land Inc. and Filinvest Alabang Inc.

Around P3.75 billion, or 15 percent, will be set aside for power arm FDC Utilities Inc. as the parent company pursues renewable energy projects.

According to Lim, they are currently constructing a 20-megawatt (MW) solar project in Misamis Oriental province—their first in Mindanao—and another 12 MW in Cebu province. Both are expected to start commercial operations within a year.

They are also venturing into hydropower development in Pangasinan province, but this is still in the planning stage, Lim said.

More hotels

Meanwhile, Filinvest Hospitality Corp. (FHC) will also get P3.75 billion for expansion, including its first Grafik Hotel up north in Baguio City that is set to open by the first quarter of 2025.

FHC, which is also behind hotel brands Crimson and Quest, previously said they would develop the 200-room hotel within a 5,700-square-meter area in Camp John Hay after clinching a 25-year lease.

FDC’s hospitality arm is also developing a Crimson hotel in Clark, Pampanga, while expanding its inaugural branch in Mactan, Cebu.

The remaining 10 percent, or P2.5 billion, will be used for developments in other businesses, as well as digitalization, according to chief operating officer Ysmael Baysa.

Digitalization “is a very big project that will affect practically all or most legal entities. That’s the biggest investment there,” he said.

Baysa explained that they wanted to create a unified system for their purchasing, project management, and management report, analysis and planning systems.

The company’s push for digitalization began in 2021, Baysa said, with the “biggest implementation” slated for this year.

FDC in 2023 booked a 58-percent growth in earnings to P8.9 billion on the improved performance of all its business units after the pandemic.

Full-year revenues likewise jumped by 30 percent to P92.8 billion from P71.1 billion. INQ