MANILA, Philippines - Vista Land & Lifescapes Inc., the holding firm for majority of the real estate properties of the family of Sen. Manuel Villar, is doubling its reach to 37 provinces as it aims to further cement its strong foothold in the housing market.
Vista Land president Benjamarie N. Serrano said the company is expanding into 18 more provinces and growth centers which include Cabanatuan, Batangas, Lucena, Ormoc and Butuan, primarily to serve the overseas Filipino workers (OFW) market, which currently account for 60 percent of its total sales.
The move is part of a strategy to consolidate its franchise as the country’s largest homebuilder, with more new projects to be launched in the next few years.
Data from the Bangko Sentral ng Pilipinas show that OFW remittances from January to May 2010 rose 6.6 percent to $7.44 billion from $6.98 billion in the same period a year earlier. Money sent home by Filipinos abroad hit a new monthly record of $1.578 billion in May, given the steady demand for professional and skilled workers and the continued expansion of remittance channels.
“There was no slowdown in the market for homes among OFWs despite the global economic crisis, since the majority of them were not adversely affected,” Serrano said.
She noted that Vista Land’s sales showed OFWs continue to buy homes during a global downturn, with the only difference being a more conservative stance in their purchase outlays, whereas they are more expansive about the price tags of their acquisitions in an economic upturn.
She explained that in a downturn, Vista Land’s affordable Camella brand homes command a greater attraction among OFW buyers, while during a boom period, in addition to Camella, its mid-range Crown Asia and upper-end Brittany brands register relatively higher sales among overseas Filipinos, particularly those in the US.
“Vista Land started building homes with Camella more than 30 years ago and we have always served OFWs as our primary market. One key reason, of course, why Filipinos work abroad is to acquire homes that they can be proud of. Our experiences have taught us that Filipinos abroad buy homes here to be lived in by their families, and not solely for investment purposes. These are end user homes,” Serrano said.
The company is eyeing P20 billion in sales this year, mainly coming from its Camella brand.
In the first quarter this year, Vista Land’s core net income reached P694 million, up 10.15 percent, while revenues went up nine percent to P2.68 billion as sales take-up surged 50 percent to P5.05 billion.
From P2.3 billion last year, the company’s core income is forecast to increase although it would still be below P3 billion. In 2009, Vista Land posted a net profit of P2.3 billion, 18 percent lower than the previous year.
As of end-March this year, Vista Land had cash of P2.52 billion and total assets of P55.13 billion. Interest-bearing loans, on other hand, stood at P945 million while consolidated liabilities reached P19.05 billion.