Highlands Prime income plunges 58.74% in H1

Highlands Prime Inc., a leisure property development firm majority-owned by the SM Group of retail tycoon Henry Sy, reported a 58.74 percent drop in net income to P22.1 million in the first six months of this year from P53.56 million in the same period a year ago.

The decline was due to lower revenues and higher cost and expenses.

Revenues reached P167.8 million compared with P199.43 million while cost and expenses surged to P149.81 million against P118.67 million a year earlier.

Highlands declared a two percent cash dividend in favor of all stockholders as of Aug. 27, 2007 payable on Sept. 20, 2007.

The company expects to generate P1.9 billion in revenues from the Woodridge project which is slated for completion next year.  The first seven buildings or 71 units out of the total 125 units or 10 buildings will be completed in 2008.

The leisure homes developer has set aside P900 million this year for the construction of new luxurious log cabins and residential subdivision lots which include The Hillside, Woodlands Point, and Woodridge Park.

Woodridge Park is Highland’s most luxurious project to date which will comprise 10 buildings, estimated to cost around P1.5 billion to P2 bilion.

The Woodlands Point, on the other hand, will involve the construction of 70 cedar log cabins priced at between P20 million and P30 million which will occupy 250 to 300 square meters of space.  Each cabin will have four bedrooms.

The Horizon, a mid-rise residential condominium development envisioned to be a golfer’s haven, is seen to raise approximately P2 billion in gross revenues for Highlands. The Horizon’s four-bed room units with an average floor area of 150 square meters boast of views of the Midlands golf course, Taal Lake and volcano.

Highlands is also building single-detached homes in the Lakeview and Alta Mira subdivisions in Tagaytay Midlands by building Balinese, Filipino and Californian Meditteranean designed houses.

Funding will come from proceeds of the company’s preselling activities and bank loans.

Highlands took out a P100 million long-term loan from the Metropolitan Bank & Trust Co.  It still has unused credit lines of P100 million with Metrobank and P500 million from China Bank.