MANILA, Philippines - The real estate unit of tycoon Lucio Tan has outlined a P10-billion expansion program this year to take advantage of the property boom.
Eton Properties Philippines Inc. will funnel the amount to complete its existing projects in the office, retail and residential sectors, a ranking company executive said.
“If we have to do all the projects together, the cost to complete those should be in the vicinity of about P3 billion to P4 billion for the year,†chief operating officer Danilo Antonio told reporters.
For instance, the West Wing Villas in the Belton Community in Makati still has to complete three to four buildings while 68 Roces upscale subdivision and high-rise building 8 Adriatico in Manila will be delivered in the next two years.
The P10-billion spending will also bankroll the construction of two residential towers of the upscale One Centris Place worth P3.5 billion and Eton Towers Makati worth P3 billion, Antonio said.
“We want to hasten the construction so we would be able to reflect the corresponding income,†Antonio said.
Eton Properties is also in the planning stage for new residential projects in Makati, Quezon City, San Juan and Binondo in Manila.
“We will continue to ride the growth of the business process outsourcing sector by expanding office and commercial properties portfolio,†Antonio said.
To date, around 20 percent of Eton Properties’ earnings come from leasing operations, which should ideally pick up to 50 percent, Antonio said.
As part of conglomerate LT Group Inc., Eton Properties has access to thousands of hectares of landbank of Philippine National Bank in Metro Manila and Southern Luzon, Antonio said.
Profits of the property firm surged to P127.5 million in the first quarter from P19 million last year as revenues almost doubled to P1.16 billion from P560 million.
“The increase in revenues is mainly attributed to higher percentage of completion of Eton’s residential and condominium units as well as higher leasing revenues from commercial projects,†LT Group said.
Eton Properties operates three major brands (–) Eton for the high-end segment, Belton for the middle-income market and First Homes for “economic†housing. It started operations six years ago.