Empire East sees 40% profit jump this year

MANILA, Philippines -  Empire East Land Holdings Inc., the low-to middle-income housing arm of real estate tycoon Andrew Tan, is eyeing up to 40 percent jump in net earnings this year on robust sales amid a bouyant for residential property market.

On the sidelines of the company’s annual stockholders meeting yesterday, Empire East president Anthony Charlemagne C. Yu said the company sees another banner year with reservation sales forecast to grow by 25 to 30 percent.

Last year, Empire East posted a net income of P250 million while reservation sales amounted to P10.06 billion, accounting for 4,989 residential units.

Yu said reservation sales for the first half this year have been brisk, hitting record levels.

To capitalize on a favorable business climate, Empire East plans to roll out three new residential phases in its transit-oriented developments – Maple Heights in Pioneer Woodlands, Green Club Towers in Little Baguio Terraces in San Juan, and Madison Plaza Towers in San Lorenzo Place.

In addition, Empire East is building Rochester, a combination of 10 mid-rise and high-buildings in Pasig City with a total of 2,100 residential units; and Kasara, a resort-inspired residential community near C-5 road in Pasig.

Yu said Kasara will tap an underserved market of Filipinos moving toward healthy, green and stress-free living. The project features 2,000 studios and one- to three-bedroom homes.

He said the company has earmarked P12 billion for capital expenditures over a five year period beginning 2010.

To further step up its presence across the country, Empire East is planning to open a new sales office in Pampanga to cater to customers in the Central Luzon area.

Yu said the company is keen on further shoring up its landbank enough for development over the next five to seven years. Early this year, Empire East submitted a P14-billion offer to acquire the 103-hectare Food Temrinal Inc. in Taguig City.

The FTI complex, valued at P13 billion, is ideal for mixed-use development.

The property was offered middle of last year at P11.9 billion but hit a snag due to the absence of bidders. The government originally priced the property at P15 billion.

Robinsons Land and other local firms, inclulding Ayala Land and SM Development Corp., were among those that submitted a bid when the Arroyo administration put it on the auction block as part of efforts to raise funds to pare down the national budget deficit, which stood at P300 billion during that time.

Empire East and its subsidiaries have already amassed a landbank of approximately 460 hectares in the metro worth P3.8 billion.