Rockwell allots P7 B for 2 new projects

MANILA, Philippines - Upscale property developer Rockwell Land Corp. will spend more than P7 billion for two new projects: a high-end office tower in Makati and a residential development in Cebu.

Strong demand for upscale residential units already rolled out is expected to jack up reservation sales to a record P13 billion this year, an official said.

The property firm of the Lopez family will put up a P5-billion office tower in the Proscenium development in Makati, Rockwell Land president Nestor Padilla said.

“The fifth tower (in Proscenium) was a swing whether residential and commercial. After we reviewed the masterplan, it made sense to make it commercial,” Padilla said, adding that the company is working on plans to make it the first office building to offer super high speed internet connection.

Rockwell Land earlier announced it allotted P26 billion for five towers in the 3.6-hectare Proscenium, which will generate development income for the next eight years.

The 60-story Iconique Tower, which will have 70,000 square meters of gross floor area, will begin construction in 2014.

“We’d like to target technology companies and multinationals,” Padilla said, adding that the transfer of the Lopez group into Rockwell will make the community an office campus.

For Rockwell Land’s first development outside Metro Manila, the listed firm will launch a Cebu residential project early next year.

“Sales value would be P3.3 billion plus and capital expenditures would be around P2.5 billion,” Padilla said.

The residential project will feature five- to six-storey buildings offering around 350 units.

Padilla said Rockwell Land targets hitting P1.4 billion in net income and P13 billion in reservation sales this year. In 2012, profits of the property firm reached P1.1 billion while reservation sales spiked 87 percent to P9.2 billion.

In a filing to the Philippine Stock Exchange, Rockwell Land said its attributable net income surged by nearly a third to P923.4 million in January to September from P705.6 million last year.

“The company also continues to generate strong demand for its products with total reservation sales reaching P10.9 billion by September, up by 88 percent versus last year,” Rockwell Land said.

Revenues, mainly derived from sale of condominium units and commercial leasing, climbed 35 percent to P5.37 billion from P3.99 billion.

Specifically, the residential  development business generated  P4.61 billion in revenues, accounting for 86 percent of total revenues. Rockwell Land said residential sales increased due to the launch of Proscenium, Alvendia and 53 Benitez.

Commercial leasing revenues rose seven percent to P766.3 million from P716.3 million last year on the back of strong mall and office space leasing.

“The company spent a total of P5.3 billion, for project and capital expenditures for the nine-month period of 2013, seven percent higher than last year’s P4.9 billion,” Rockwell Land said.

“The expenditures consist mostly of development costs of Proscenium, Edades, The Grove Phases 2 & 3, 205  Santolan and Lopez Tower projects,” it added.