Robinsons Land earmarks P7-B budget this year for new projects

Robinsons Land Corp. (RLC) the property arm of Gokongweis’ flagship firm JG Summit Holdings Inc., has earmarked as much as P7 billion this year for the development of new malls, office buildings for business process outsourcing (BPO) firms, residential projects, and landbanking activities.

In an interview with reporters following the company’s annual stockholders’ meeting the other day, RLC executive vice-president Frederick Go said the capital budget for the year is double the amount spent a year ago.

Go said bulk of the programmed capital budget or about P3.5 billion will go to the construction of residential and office buildings while P2 billion has been set aside for acquisition of properties for future development.

Funding will come from internally-generated cash, a planned preferred share offering, and possibly new borrowings.

JG Summit president and chief operating officer Lance Gokongwei said the company is building seven new malls in Davao, Tagaytay, Dumaguete, Sucat, Manila, Pangasinan, and General Santos. These new malls, he said, are expected to be completed next year or in 2008.

He said the company is completing the redevelopment of a portion of Robinsons Galleria mall to be called West Wing, and Robinsons Ermita.

"We will pursue new formats and concepts to attract more retail establishments as these proved to be successful in bringing foot traffic into our malls," Gokongwei said.

He said the company remains focused on the lucrative middle-market residential housing as it aims to launch at least three projects this year including East of Galleria, a high-rise residential condominium located in the Ortigas business district.

As for its office buildings, RLC expects to complete the construction of Robinsons Cybergate Center Tower 2, an office building complex designed for call centers and BPO firms. "The first building is almost leased out and there is robust demand for the second building. A portion of the second building will be made available for lease by the end of fiscal year 2006 and the rest will be delivered in the second quarter of fiscal year 2007. It will add a gross leasable area of approximately 43,000 square meters," Gokongwei said.

As for the housing segment, he said the company will focus on the middle-income market for lots with options for housing priced ranging from P600,000 to P2 million.

Gokongwei said RLC will step up efforts to acquire properties via joint venture in key cities where there is big potential for mid-market real estate property sales and it will aggressively tap the overseas Filipino wokers market in Europe and in the Middle East.