Filinvest allocates P12 B for 2011 capital spending

MANILA, Philippines - Gotianun-led Filinvest Land Inc. said yesterday it was allocating P12 billion for its capital spending this year or more than double the 2010 budget.

A big chunk of the programmed capital budget will go to construction of residential condominium projects, FLI said in a disclosure to the Philippine Stock Exchange. In particular, the company will launch four new socialized housing projects, six new affordable housing projects and two new mid-rise buildings (MRBs).

FLI earlier announced that it was targeting to launch 17 new projects and 24 additional phases of existing projects worth P13 billion, 25 percent higher than the value of projects introduced in 2010.

The projects targeted for launch this year are equivalent to over 14,000 units, nearly double the close to 7,300 units launched last year.

“Our capex budget for 2011 will support the project launches that we are targeting this year, as well as projects we launched previously. We want to grow both the residential development business and the leasing portfolio of the company, and this entails a significant investment,” said Joseph Yap, president and chief executive officer of FLI.

“Our capex will be financed by internally generated funds, as well as additional borrowings, if necessary,” Yap added.

FLI said it is set to start construction of the first buildings of Amalfi Oasis and San Remo Oasis, two resort communities to rise within the 40-hectare residential portion of Citta de Mare in Cebu.

The company currently has nine MRB projects that have been announced or are under construction.

This year, it plans to start development on two additions to the “Oasis” series, namely Bali Oasis 2, and Belize Oasis within Metro Manila.

FLI will also commence construction of The Linear, a twin tower high-rise residential project located at the corner of Malugay, Yakal and Mayapis streets in Makati City. The Linear is FLI’s first high-rise residential project in Metro Manila.

Yap said the company is also expanding its retail operations with the expansion of the Festival Supermall in Filinvest Corporate City, Alabang, and the development of Il Corso, the retail component of Citta de Mare.

Il Corso is a 10.6-hectare waterfront lifestyle strip of Citta de Mare that will offer a wide range of retail, food, entertainment and seaside leisure activities. Phase 1 of the project covers four hectares and will include a boardwalk, beachfront retail spaces, restaurants, a 2,500 square meter exhibition tent and a 4,500 square meter sandbox that may be used for sports like beach volleyball.

Aside from this, FLI is also completing the construction of Vector 2 which will bring to 12 the number of its BPO office buildings within Northgate Cyberzone in Filinvest Corporate City.