Fil-Estate earmarks P1.5B for property dev’t projects

Fil-Estate Land Inc. (FELI) is setting aside P1.5 billion for real estate development projects over the next 12 to 18 months, moving to boost its cashflow and regain its status as one of the leading property firms in the country after successfully trimming its debts significantly.

Following the reduction of its debt to just P25 million from a little over P100 million the previous fiscal year, FELI is set to launch eight projects that are expected to provide a stable recurring income for the group.

FELI chairman Robert John Sobrepeña said the company expects to fully settle its debts by the end of the year through revenues generated from its projects.

Among the company’s projects are the Phase V expansion of Manila Southwoods, Twin Lakes (a mixed-use project in Laurel, Batangas), Sto.Domingo Place (a residential condominium building in Quezon City), Mulligans Golf Hotel in Boracay, ParcoBello (a residential development with golf course in Muntinlupa), and Festival Villas in Iloilo.

Sobrepeña said the property firm is likewise in talks with several groups of foreign and local investors for possible joint development of planned real estate development projects.

He said development of the Phase V expansion of Manila Southwoods Estate in Cavite is in full swing along with LaurelRidge, a residential project located in a 900-hectare property in Batangas.

Sobrepeña said FELI has signed an agreement with the Chung family, owner of the MC Depot chain, to build nine "condotels" in Boracay right beside the company’s Fairways property. The project will be a 60 to 40 joint venture in favor of the Fil-Estate Group.

Sobrepeña said the company has a total landbank of 3,050 hectares, which he said is sufficient for future development for 10 years. This landbank, he said, is expected to generate P120 billion in revenues for the company over the next 10 years. Its properties are scattered all throughout Metro Manila and the Calabarzon region.

Of the total landbank, 2,000 hectares are for joint venture developments and the balance of 1,050 valued at P2.5 billion is solely owned by the company.

While FELI sees growth in its sales, the company does not expect to surpass last year’s revenues and income since most of its projects will only start contributing to the bottom line next year.

Buty Sobrepeña said FELI will continue to streamline operations, reduce costs and develop recurring revenues to allow it to take advantage of the promising opportunities in the country’s real estate sector.