Empire East sets P25-B spending plan

MANILA, Philippines - Empire East Land Holdings Inc. is spending P25 billion in the next five years for its housing projects as it takes advantage of robust demand from the middle income segment, a top company executive said.

The mid-cost property developer of property tycoon Andrew L. Tan is pursuing several residential projects, including its first mixed-use development in the metropolis, and a lifestyle mall in Broadway Centrum, home of a popular noontime show.

“We believe there is no oversupply and we will have more productive years to come in the middle income sector,” Empire East president Anthony Charlemagne Yu said during the company’s annual stockholders meeting yesterday.

“We are confident that with the sustained positive economic trend, we are well-positioned to achieve revenue growth and to capitalize on opportunities that will allow us to further serve our customers,” he added.

Empire East allotted P25 billion for its five-year expansion program that includes its first large-scale mixed-use development in the metro. The property firm will spend P4 billion this year for its project development, up from P3.15 billion a year ago.

Yu said the company will finalize this month the acquisition of a 23-hectare lot in Pasig City that will be developed into a mixed-use property featuring a Megaworld Lifestyle Mall and several condominium buildings.

Other residential projects to be launched this year include the Mango Tree Residences in San Juan and Covent Garden in Sta. Mesa.

Yu said Empire East is also looking to put up a lifestyle mall and residential buildings in Broadway Centrum, the home studio of noontime show Eat Bulaga. All lease contracts in the 1.7-hectare property will end this year.

Empire East targets to grow its earnings by 10-20 percent and revenues by 15-30 percent this year from P299.4 million and P1.7 billion, respectively, in 2013, he said.

The real estate firm also targets to boost reservation sales to P22 billion. Last year, reservation sales for Empire East developments and Empire East-managed projects rose 17 percent to P20 billion.

“We see our performance continuing on an upward trajectory,” Yu said, adding that the company is banking on remittances of overseas Filipinos, business process outsourcing revenues and the absence of massive government mass housing projects.

Together with other properties in various locations, the company’s total land bank is at 454 hectares worth P4.09 billion.

“We will actively tap new areas for growth, innovate to differentiate, meet the market head on with relevant and responsive products, and keep ourselves accountable when it comes to customer service and satisfaction,” Yu said.

Empire East is part of the Megaworld property group, which also includes flagship unit Megaworld Corp., tourism estate developer Global-Estate Resorts Inc. and affordable housing unit Suntrust Properties Inc.