Filinvest earmarks P15B for capex

Gotianun-led  property developer Filinvest Land Inc. has set aside P15 billion for capital spending this year, mainly to boost its residential development projects.

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

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

“We will 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 capital outlay, Yap said P10 billion was earmarked for residential development, P2.5 billion for landbanking and another P2.5 billion for new malls and office buildings.

FLI’s 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 this year. It plans to bring to the market 12,100 units worth P14.5 billion this year, including about 4,500 “socialized” units in 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 would expand Festival Supermall.

FLI will have an office portfolio of more than 178,000 square meters in gross leasable area this year, making it one of the biggest office landlords in the country. Doris C. Dumlao