Sta Lucia unit sets P11-billion capex

MANILA, Philippines - Sta Lucia Land, the listed property unit of the Sta.Lucia Group, has set a capital expenditure program of P11 billion over a five-year period to bankroll new residential, office and commercial projects.

In a statement, Sta. Lucia said it expects 2011 to be a banner year with sales seen to rise over 3,600 units.

Slated for construction this year are the Sta. Lucia Towers (located beside the Sta. Lucia mall along Marcos Highway), business process outsourcing offices and tourism-related projects. The first two of the five-building Sta. Lucia Towers of the five towers will begin construction in the first quarter this year.

To fund its expansion, Sta. Lucia Land is considering undertaking a follow-on offering in the latter part of the year.   The Group has yet to tap the international debt and equity capital markets as it has stayed conservative in terms of its funding strategies. 

Tapping the equities market will not only allow Sta. Lucia it to aggressively mobilize the groups’ extensive landbank currently with Sta. Lucia Realty Group but also expand its tourism and leisure related assets while venturing into acquisitions.

The Sta. Lucia Group has had a strong history of building quality projects having developed over 9,000 hectares of prime properties with over 200 projects nationwide.  

“Strong market conditions, not only in the Philippine property market but for the entire Southeast Asian region as well, has prompted the company to leverage its brand name and expertise to continue to take part in the development of the country’s highly unserved real estate sector” said David dela Cruz, senior vice-president for Corporate Finance and Investor Relations at Sta. Lucia.  

The group by far has served the middle income segment by providing residential units while tailor-fitting amortization schemes to make the units affordable without comprising quality. It also ventured into retail with its Sta Lucia Grand East Mall located in Cainta, Rizal which provides a steady stream of cash flows to the company.

With a formidable sales force of over 120,000, the group has been able to market and develop projects all over the country, with major developments in key areas within and outside Metro Manila such as Cebu, Davao, Bacolod, Iloilo, Baguio, Rizal, Cavite, Laguna, Batangas, Nueva Ecija, Tarlac, Subic, Bulacan and Pampanga.  

 “The government’s current thrust to increase investments in road network infrastructure augurs well for us as not only will it decongest Metro Manila, but will certainly open up new areas for residential, commercial, leisure and industrial estate developments in key cities outside Metro Manila” Dela Cruz said.