RLC allots P125 billion for five-year growth pipeline

Mybelle V. Aragon-GoBio, president and CEO of Robinsons Land Corporation

MANILA, Philippines — Faced with tight competition in the middle income sector, Robinsons Land Corp. (RLC) is setting its sights on “premiumization” of its brands in the next five years, with a P125-billion capital expenditure in the pipeline.

RLC president and CEO Mybelle GoBio told reporters on Wednesday this was part of their plan to double the developer’s net income to P25 billion by 2030 in time for its 50th anniversary.

Company earnings last year ended at P13.21 billion, up by 10 percent.

“This long-term goal reflects our strong commitment to creating enduring value to our shareholders,” GoBio said during a media briefing.

To achieve this, GoBio explained they would focus on upgrading RLC’s assets in a five-year “premiumization” strategy across its business units.

READ: Mall, office, hotel units lift Robinsons Land’s Q1 earnings

Office portfolio

This includes a face lift of its older office buildings, expanding RLC’s portfolio of upscale condominiums and introducing luxury and ultra-luxury hotels.

For its office buildings, GoBio said they particularly wanted to improve their office buildings to attract more third-party logistics firms, Fortune 500 companies and bigger business process outsourcing players.

RLC earlier confirmed that it would spend P100 million until 2026 to reinvent eight of its older office buildings.

Robinsons Offices currently has 33 office buildings, the lobbies of “less than half” of which are due for renovations.

The company also recently launched The Jewel, which will be composed of a mall, four office towers and a five-floor basement parking area with a projected gross leasable area of around 320,000 square meters. This would make it RLC’s biggest project in a single location.

Residences

Apart from its Westin Residences project in Pasig City, RLC is also completing new towers at its Bridgetowne township in Quezon City to expand its luxury residential portfolio.

“We’re targeting the upper mid to premium market for the residential business,” GoBio said.

Its shift in focus to the premium segment comes as it works to shrink its P49-billion unsold residential inventory.

Of the total, P5.3 billion worth of units are ready for occupancy, RLC chief financial officer Kerwin Tan said.

Luxury hotels

For its hospitality portfolio, GoBio confirmed that they were open to introducing Fili Hotel and Nustar Hotel to other locations outside Cebu City.

These “ultra-luxury” hotels are located within the P30-billion Nustar complex in the country’s second-largest metropolis.

Asked whether they were open to bringing these brands overseas, GoBoi said, “Yes, we will build more for sure.”

RLC launched the 223-room Nustar last October, and it is set to begin commercial operations on Thursday, May 8.