DMCI budgets P5 billion for ongoing, new projects

MANILA, Philippines - DMCI Homes, the property development unit of publicly-listed DMCI Holdings, is allocating P5 billion this year for both ongoing and new projects, as it targets a 25 percent growth in revenues in 2010.

Company officials said their capital expenditure this year has increased to P5 billion from last year’s P3.2 billion as DMCI Homes adopts an aggressive stance amidst the improvement in the domestic economy badly hit by the recent global financial crisis.

DMCI Homes managing director Alfredo Austria said four new projects will be pursued this year, all in Metro Manila and catering to the middle class market.

These projects include two high-rise developments in Pasay and Taguig (Royal Palm), and two mid-rise housing developments in Quezon City (beside the LVN Compound in P. Tuazon) and in Muntinlupa (formerly Pfizer property).

In addition, DMCI Homes is pursuing the development of 10 ongoing projects. These include those in Taguig (Cedar Crest), Mandaluyong (Tivoli Garden), Pasig (East Raya), Quezon City (The Redwood and Magnolia), Alabang (Ohana), Manila (Ilumina Residences), and one in Cabuyao, Laguna.

Austria explained that the local economy is getting better and expected to perform much better this year compared to last year.

He noted that DMCI Homes did not grow as much last year compared to 2008 due to the adverse effects of the international financial crisis, but this could have been worse had the company not focused on the end-user market which is much stable compared with the more unstable investing market.

So far, DMCI Homes, which is on its 10th year, has developed 24 projects and completed 8,000 units of mostly middle-market homes.

Austria also said while the company has one recreational-leisure type of development in Boracay (Alta Vista de Boracay), there are no plans to go into another one yet. “We intend to focus right now on mid-market residential developments,” he disclosed.

While DMCI Homes has pursued residential developments outside of Metro Manila, namely those in Cabuyao, Laguna and two in Cavite (Villa Alegre and Woodland), the company intends to focus on developing condominium type of homes in Metro Manila.

Among the projects currently being developed by DMCI Homes is Cedar Crest in Taguig City launched in September last year. Targetted for occupancy next year, around 92 percent of the four buildings launched last year have already been sold out.

Cedar Crest consists of 10 medium-rise residential condominium buildings located in a 3.8-hectare property. With unit prices ranging from P2.47 million to P4.65 million, the project is targeting early nesters and young, growing families with a minimum of P80,000 monthly household incomes.

Meanwhile, The Redwoods in Quezon City, the only Neo-Asian inspired residential village in Fairview, consists of five medium-rise buildings in a two-hectare property. Like Cedar Crest, it is geared towards start-up families and upgraders and is targeted for turnover in March 2011.

DMCI Homes also unveiled one of its newest projects, Tivoli Garden Residences in Mandaluyong City. It will have five high-rise residential towers on 2.7 hectares of property. Two of the towers, Eugenia and Heliconia are scheduled for turnover in February 2010 and February 2011, respectively, while Bauhinia is already ready for occupancy. Currently being developed is the Iris Tower expected to be turned over to unit owners by March 2013. The last building is named Hibiscus.