Filinvest readies P15-B capex

MANILA, Philippines—Property developer Filinvest Land Inc. has set aside P15 billion for capital spending this year, mostly to boost its residential development projects.

During the company’s stockholders meeting on Friday, FLI president Joseph Yap said the company would like to maintain a 15-20 percent growth in sales and net income this year.

FLI’s strategic objective is to attain an industry-level return-on-equity ratio of 10 percent by 2014 and increase this ratio further in 2015 and beyond.  As of end-2011, FLI’s return on equity stood at 7.2 percent.

“We will not target sales growth for the sake of sales growth alone. Revenue growth must go hand in hand with profitability growth,” Yap said.

“We shall support our ambitious strategic plans with a very strong financial commitment built upon a solid financial foundation and an impeccable credit track record built over the last 50 years,” he added.

Of the P15 billion in capital outlay planned for 2012, Yap said P10 billion would go to residential development.  About P2.5 billion was earmarked for landbanking and another P2.5 billion was meant for new malls and office buildings.

FLI’s actual capital spending amounted to P9 billion in 2011.

On the residential business, FLI plans to launch 14 projects and 19 additional phases of existing projects in  2012. It plans to bring to the market 12,100 units worth P14.5 billion this year, including about 4,500 “socialized” units in areas like Batangas, Bulacan and Cavite.

The project launches planned for this year are expected to exceed last year’s residential offering. FLI brought to the property market 6,503 new residential units last year worth about P12.1 billion.

On shopping malls, Yap said, FLI will expand Festival Supermall, the largest regional mall in southern metro Manila.  This mall currently has a 94-percent occupancy rate.

On office property, FLI will have an office portfolio of over 178,000 square meters in gross leasable area, making it one of the biggest office landlords in the country.  By 2016, FLI plans to double its office portfolio to more than 371,000 sqms of gross leasable area.

“To achieve this, FLI shall expand its presence outside of its current Alabang core and into other sites in Metro Manila and other key urban areas,” Yap said.