Robinsons Land set to open 5 new malls this year

Robinsons Land Corp. said yesterday it would spend from P3 to P4 billion for the construction of five new malls to open later this year, banking on an expected recovery in the real estate sector and growth in consumer spending.

RLC senior vice president Frederick Go said the addition of the five new malls would bring up their chain to 15 nationwide, outpacing the number of its competitor, the SM Group which has 12 malls, including two new ones to open this year.

Go said their programmed capital expenditure would be on top of their entry in the Bonifacio Global City, where they were able to secure a deal with Fort Bonifacio Development Corp. (FBDC) for the retail and mixed-use development of a six-hectare lot near the centerpiece of Big Delta project.

He said the Bonifacio project would entail a cost of between P10 to P12 billion over the span of its development, expected to take up to around three years.

"We expect the deal to be signed within 60 days," Go said. With this development, the JG Summit Group of tycoon John Gokongwei gets a headstart over its rivals, the SM Group (which has not signed a similar agreement) and the Ayala Group (which tried but failed to take over the development rights to a 19-hectare northern property).

RLC plans to put up a mall complex, residential, hotel and commercial buildings in the area, with initial talks on the project revolving around the development of a mixed-use complex of approximately 500,000 square-meters.

In its fiscal year ending September 2001, RLC registered a 19-percent rise in net income to P801.7 million, on gross revenues of P3.41 billion, 13 percent higher than a year ago, boosted by higher contributions from its malls and high-rise buildings.

The five new malls to open this fiscal year include Cagayan de Oro; Dasmariñas, Cavite; Lipa City, Batangas, Sta. Rosa, Laguna; and Dagupan in Pangasinan. Last year, RLC put up four new malls in Novaliches, Cainta, Iloilo and Pampanga.

Go said the company expects a tempered recovery in the real estate sector with the downward trend in interest rates, which is traditionally favorable for real estate investments. "We will face the new fiscal year with continued prudence, a strategic focus on each of our projects and a determination to rationalize and improve all existing businesses."

He added RLC would restructure is high-rise buildings division to make it a "vehicle for developing horizontal and vertical real estate that target middle to high-end markets."

The company will also pursue residential buildings in Quezon City and Mandaluyong, optimistic that the government’s efforts to promote the country as a top tourist destination will result in better business prospects for its hotel group.