RLC doubles capex to P7 B this year
An article published in The
Manila Bulletin, April 21, 2006
By: James A. Loyola
Robinson’s Land Corporation (RLC) is doubling
its capital expenditure for the year to P6 billion to P7 billion from P3.5
billion in 2005 as it steps up its land banking and construction efforts to
take advantage of an uptrend in the property sector.
RLC executive vice president Frederick Go said they will spend about P2
billion for land banking, P1.5 billion for mall construction, and P2.5
billion for high rise buildings. The balance will be for residential
projects such as subdivisions and townhouses.
Go said they are aggressive about land banking for both their commercial and
residential developments. He added that the P2 billion includes the
Parañaque property they bought from Jardine recently.
RLC president Lance Gokongwei said they are building seven more malls to add
to the existing chain of 18 malls.
Go said they will be starting construction of three to four malls this year,
including one in Sucat and another one in Paco, while the rest will be
launched next year. He notes that the malls may open by 2007 to 2008 since
construction could take up to three years.
The firm is also constructing high-rise buildings fast to meet growing
demand for residential condominiums as well as for office space by the
booming business process outsourcing and call center industry.
Go noted that they have yet to finish building Cybergate 2, which has a GLA
of 43,000 square meters, but it is already fully booked. This has prompted
them to frontload plans for Cybergate 3 to keep up with demand.
"We are already the biggest landlord for call centers," Go said revealing
that they have about 130,000 square meters of gross leasable space occupied
by BPOs and call centers.
For its 10 existing high-rise residential projects, RLC has a total of 6,227
units with P3.3 billion in unrealized revenues and P3.9 billion worth of
reservations.
RLC has 17 ongoing housing projects across the country as it focuses on
affordable residential subdivision lots with housing options while its entry
to the upper middle cost market also proved to be successful.
It is pursuing joint venture agreements with private landowners to reduce
capital requirements and improve return on capital. Go said they are also
open to joint venture with banks for the development of idle assets or
foreclosed land.
Go said their capital expenditure program will be financed by a combination
of internally generated funds, debt and proceeds from the pre — selling of
their projects.