Filinvest Land's real estate sales up 26%

MANILA, Philippines - Gotianun-led Filinvest Land Inc. (FLI) said its real estate sales grew 26 percent in the first quarter this year, driven by improving investor confidence on the country’s economy and the property sector.

On the sidelines of the company’s annual stockholders’ meeting yesterday, FLI president and chief executive Joseph Yap said sales reservations from January to March 2010 amounted to P2.4 billion compared with P1.9 billion the previous year-period.

Yap said the company is looking at a 15-to 20-percent growth in sales this year mostly coming from its socialized and affordable housing units.

FLI is hoping to raise P8.6 billion in revenues from the launch of 13 new projects and 23 additional phases across all its market segments. To be introduced are four new socialized housing projects in Cavite, Batangas and Bulacan, as well as two new affordable housing projects also in Batangas and Cavite.

The company has set aside P6.8 billion for its capital expenditures this year, more than double the P3.3 billion spent in 2009.

Riding on the warm reception to its mid-rise residential projects, FLI will continue to launch more buildings to add to  its existing portfolio which includes One Oasis in Ortigas, Bali Oasis Marcos Highway, One Oasis Cebu, One Oasis Davao, Maui Oasis Sta. Mesa, Capri Oasis Pasig and Sorrento Oasis Pasig.

Last year, FLI introduced seven new projects and expanded 23 existing projects valued at P6.4 billion, bringing the company’s total ongoing projects to 77.

FLI is targeting to break ground on its first residential project within the 300-hectare reclaimed South Road Properties in Cebu, to be called Citta di Mare. The company is hoping to start land development on a portion of the 10.6 hectares earmarked for mixed-use development as well as on the first of the six residential buildings within the 40 hectares allocated for residential use.

FLI is also expected to start construction of two office buildings catering to business process outsourcing (BPO) firms.

As of end-December 2009, FLI had a sizable landbank of 2,433 hectares which will enable it to continue to launch new projects to meet future market demand.

Yap said the company is seriously studying the possibility of raising funds through a property trust listing. “We’re in discussions with some investment bankers but there are no definite plans yet as the implementing rules and regulations haven’t been finalized yet. Once the rules are finalized, a final decision will be made but it’s something we’re definitely looking at,” he said.