Highlands Prime allots P2.5 billion for 2 projects

MANILA, Philippines - Highlands Prime Inc. (HPI), the high-end leisure property development firm of the family of retail tycoon Henry Sy, is allotting P2.5 billion this year and next for ongoing developments inside the exclusive Tagaytay Highlands and new projects which include the recenly-acquired 342-hectare property in Canlubang, Laguna.

At the company’s annual stockholders’ meeting yesterday, HPI president Antonio Henson said only P900 million out of the total capital budget will be spent this year while the balance will be utilized next year using internally-generated cash and bank borrowings. Around 40 percent of the total capex has been set aside for the Canlubang project.

Henson said the Canlubang property, which will be developed into an eco-tourism community offering high-end primary homes and world-class commercial centers, is expected to boost HPI’s real estate sales for 2009 and 2010. The first project within the Canlubang property is expected to be launched within the year.

HPI is eyeing sales of a little over P1 billion this year, up 25 percent from the P800 million registered in 2008 on sustained strong sales. Net earnings are likewise forecast to grow nearly 50 percent to around P253 million compared with P183.68 million a year earlier.

Henson said the company is now finalizing its short list of companies that will execute the masterplan for the Canlubang property. “We hope to engage one by August. Hopefully, by November, we’ll be able to identify these projects.”

He said the acquisition of the property which extends to the Hillside Village at Tagaytay Highlands, “opens a new corridor of opportunity from which your company can diversify.”

“We plan to develop it into a new mega place conducive to healthy and family-oriented living. We are confident that this project would increase our share of the high-end market. Revenues and profitability are likewise expected to increase,” Henson said.

Among the ongoing developments within the upscale Tagaytay Highlands include the in-demand log cabin development at The Woodlands Point, The Hillside (the only lot development in the area), The Woodridge Place phase 1 (a mid-rise condominium which is nearly sold out), and Pueblo Real (the Santa Fe Mexican lot development at Tagaytay Midlands).

Projects in the pipeline include phase 2 of The Woodridge Place with three and four-bedroom condominium units, The Horizon phase 2 at Tagaytay Midlands covering the construction of two and three-bedroom townhouses, IL Piazze at Milago (an Italian-style complex overlooking Taal Volcano) and The Cliff at Hillside (another mountain lodge-type condominium development).

HPI expects to generate P5 billion in sales from three projects — The Woodridge Place, The Hillside and and The Woodlands Point.

Henson said the company continues to scout for properties for possible acquisition to further beef up its landbank, consisting of 942 hectares.