Filinvest Land sees 15% sales growth this year

Filinvest Land Inc. (FLI), the real estate unit of the Gotianun-owned holding company Filinvest Development Corp., is expecting a 12 to 15 percent growth in sales this year, mainly coming from its middle-income housing projects.

FLI first vice-president Fely Ramos said net earnings are likewise expected to grow by 10 percent this year. For 2005, the company likely posted a 10 percent rise in net profit on sales of P3.3 billion.

In 2004, FLI reported a net income of P595.9 million, 17 percent higher than the previous year’s P508.5 million.

Reflecting its bullishness on the property sector, FLI has lined up 12 new projects, mostly located in Metro Manila. Around P1.4 billion has been earmarked for its capital expenditures this year, which will come from internally-generated funds.

"We are very positive about our prospects this year, mainly because of the strong remittances from Filipinos living or working abroad and the low interest rate environment," Ramos said.

Three of the 12 projects to be launched this year are affordable housing projects valued at between P1 million and P1.5 million.

Two will rise in Sto. Tomas Batangas while another one will be put up in Calamba, Laguna.

FLI also plans to launch two middle-income housing and two high-end housing projects, all within Metro Manila. The housing units catering to the high-end-market are priced at between P2.5 million to P3 million.

Three other middle-income housing projects will be launched in Cebu and Davao to extend the company’s presence out of Metro Manila.

Aside from these, FLI is also constructing two Asenso Village projects, one in Calamba, Laguna and the other in Tanza, Cavite.

Development cost for both projects has been estimated at between P100 million and P120 million with a total of 951 lots to be sold.

Investment cost for a typical entrepreneur’s lot may range from P600,000 to P1 million.

Asenso Village is designed as a business park devoted to the development of start-up and expanding small and medium-sized enterprises (SMEs).

The development of SME business parks is included in the 2005 Investment Priorities Plan of the Department of Trade and Industry, which supports the government’s objective to develop and support two million entrepreneurs until 2010.

Ramos said the company is targeting overseas Filipino workers, entrepreneurs with small capital, local government units for their livelihood programs, retired or retiring Filipino employees, existing local SMEs and foreign businesses involved in information and communication technology.