MANILA, Philippines - The real estate unit of the Villar family said it expects to sustain its double-digit growth pace next year, driven by continuous demand for house and lots despite a slowdown in high-rise projects.
The new project developments will be backed by Vista Land & Lifescapes’ plan to raise as much as $150 million through bonds, its top official said.
“For Vista Land, we’re looking at 15– percent growth next year,†said Vista Land chairman Manuel B. Villar Jr., when asked about the outlook for profits and revenues in 2014.
For this year, the listed property firm targets to grow its profits and revenues by 15 to 20 percent. Last year, its profit surged 24 percent to P4.37 billion while revenues climbed a fifth to P16.33 billion.
House and lot projects are expected to continue posting robust sales given high demand from end-users, Villar said.
“Horizontal is a sure market with a big backlog regardless of the interest rate situation,†Villar said.
In contrast, Vista Land will cut back on its high-rise developments, which are sensitive to interest rates particularly for those buying for investments.
“We are looking at reducing our exposure to high-rise,†Villar said, adding that the interest rate situation next year is still uncertain.
So far, condominium unit Vista Residences has 10 ongoing projects and three more residential buildings are in the pipeline in Metro Manila.
To support its expansion program for horizontal developments, Vista Land is lining up a bond issuance program.
“We’re looking at it...we’re feeling the market,†Villar said, adding that the bond sale might raise $100 million to $150 million in fresh capital.
Proceeds will be used to repay existing debts and expansion program, Villar said.
Vista Land earlier hired Hongkong and Shanghai Banking Corp. Ltd. and UBS to arrange a series of roadshows for the bond sale.
In the first half, Vista Land posted an 18-percent uptick in net income to P2.6 billion from P2.2 billion last year while revenues rose 20 percent to P9.7 billion from P8.1 billion a year ago.
In the past 38 years, Vista Land has completed more than 250,000 housing units in 31 provinces and 64 cities and municipalities around the country.