Filinvest Land boosts capital expenditures to P5.3 billion

MANILA, Philippines – Filinvest Land Inc. (FLI), the real estate unit of the Gotianun family, is gearing up for a major expansion program this year with P5.3 billion allotted for its capital expenditures, an increase of 29 percent from the previous year’s P4.1 billion.

At the sidelines of the company’s stockholders meeting yesterday, FLI president Joseph Yap said the money will start up plans to develop five to six mid-rise buildings, two BPO buildings, the first phase of the P25-billion township on a reclaimed land in Cebu City, and its first high-rise residential project, The Linear.

These projects will be funded using internally-generated cash and bank borrowings, he said.

Yap said demand for housing will remain robust in spite of a tough business environment. “We remain financially prudent and cautious in our undertakings but at the same time ready to take advantage of opportunities when they arise and strengthen our company’s position as the leading provider of mass housing in the country,” he said.

In fact, sales reservations for the first two months are on the upside, rising 15 percent year-on-year to P1.3 billion from P1.15 billion in the same period a year earlier.

Yap said the company is launching 29 new projects and phases this year, estimated to generate around P7.4 billion in sales across all market segments. 

FLI plans to launch more phases in its ongoing mid-rise projects in Ortigas Extension and Marcos Highway in Pasig City, as well as in Davao and Cebu. It will also launch a similar project in Sta. Mesa, Manila.

For its socialized housing projects, the company is readying new projects within Ciudad de Calamba as well as new phases in existing projects in Batangas, Cavite, Tarlac and Pampanga.

The Linear, on the other hand, will comprise two high-rise residential towers offering a total of 1,600 affordable units. Estimated to cost P1.5 billion, the Makati project will be developed in four stages, with the first phase involving the construction of the first 324 units.

For its Cebu project, FLI has signed an agreement with the Cebu City government to develop 50.6 hectares of the South Road Properties (SRP), a 300-hectare reclaimed property, into a mixed-use complex. The project will be developed in four phases over a 20-year period with FLI contributing the development costs as well as the marketing and management services.

Another 10.6 hectares will be purchased outright by FLI, which will be transformed into commercial or retail spaces, offices and condominiums and hotels. 

Yap said the masterplan for the SRP is now being finalized with the first project expected to be launched by yearend or early 2010.

As for its BPO projects, under construction are two buildings at Northgate Cyberzone — Vector One and Vector Two — which are slated for completion within the year and will add another 35,600 square meters of gross leasable area. This should increase the group’s office building portfolio to nearly 168,000 square meters.