Robinsons Land allots P2.5-B for shopping mall projects this year

Robinsons Land Corp., the property arm of the Gokongweis’ flagship firm JG Summit Holdings Inc., has earmarked P2.5 billion for the construction of new shopping malls and other projects this year.

During the launch of its latest project – Fifth Avenue Place – yesterday, RLC president Lance Gokongwei said the company will open three new shopping malls this year. These new commercial centers will rise in Angeles, Pampanga; Bacolod and Mandaluyong.

The mall in Pampanga will open in March while the one in Bacolod is slated for opening in May. The Metro Gateway Mall in Mandaluyong, on the other hand, is due for opening in August.

The 2004 capital budget, which is slightly lower than last year’s P2.5 billion, includes the development cost for the malls in Cainta, Rizal and Lipa, Batangas,which opened last year.

Of the programmed capital budget, P2 billion was allotted for the establishment of new malls.

Gokongwei said he is confident RLC will perform better than last year with its buildings division driving the growth. Revenues by the buildings division rose 200 percent last year, buoyed by the very strong growth in middle-income projects.

"We are quite confident in our ability to sell. We had record sales last year, " Gokongwei said.

RLC senior vice-president Frederick Go said the company registered sales of P3 billion last year compared with only close to P1 billion the previous year.

For its condominium projects, the company is set to start the development of Fifth Avenue Place, a 38-storey residential building in Fort Bonifacio Global City.

The company intends to focus on the development of affordable residential condominiums with a price range of P1.8 million to P3.5 million for the middle-income market.

Among its ongoing residential projects are Galleria Regency, an upscale condominium portion of a 33-floor building located at the corner of Ortigas and ADB Ave. in Pasig City; and Bloomfields, which will rise on a nine- hectare property in Novaliches, Quezon City.

RLC will launch three additional residential condominium projects in the next two years. These include The Fullerton Place in Quezon City, Gateway Residences in Mandaluyong, and Adriatico Residential Towers in Manila.

As for its hotel division, RLC intends to maintain its higher-than-industry hotel occupancy rates by strengthening its marketing organization to focus on corporate and leisure travellers, as well as bolster the domestic market with affiliate, Cebu Pacific Air.

The firm’s shopping malls are generally anchored by sister companies Big R Supercenter, Robinsons Department Store, Robinsons Supermarket and/or Handyman. They enjoy high occupancy rates, currently averaging at 94 percent.

RLC’s objective is to further strengthen its position as the most solid and reputable real estate developer in the country.

It intends to steadily expand its shopping mall business by building three to four new shopping malls a year. It also plans to develop leaner commercial centers in provincial cities with a smaller average gross floor area of 25,000 square meters each.