SLI to launch P25 B worth of projects this year

MANILA, Philippines — Listed property developer Sta. Lucia Land Inc. (SLI) is launching 25 projects in the next three years, of which around 10 new projects with an estimated sales value of P25 billion are slated this year, a top ranking official said.

SLI president Exequiel Robles said the company is planning around 25 projects, most of which are residential and condominium projects targeted at various market segments, in the next three years.

The company is allotting P15 billion for capital expenditures (capex) over a three-year period, he said.

Of the total, Robles said the firm would launch 10 projects and allot P5 billion in capex this year as it starts land development after acquiring lands.

“We will develop around 2,000 hectares of properties scattered all over the country in the next three to four years. These planned projects are located in Pangasinan, Dagupan City, Bulacan, Pasig City, Cavite, Laguna, Batangas, Rizal, Iloilo, Silay City, Puerto Princessa Palawan, Cebu and Davao,” he said.

At present, the company has over 40 ongoing projects.

“We will also continue to go into joint ventures for projects covering some 1,000 hectares for this year alone. We target to tap current joint venture partners who are still huge landowners,” Robles said.

Among these projects are Green Peak Heights in Palawan; Nasacosta in Batangas; La Alegria in Silay City, Negros; Sotogrande in Davao; Santorini in Cainta, Rizal; and the Sta. Lucia Business Center in Pasig City.

Robles said targeting the provincial areas gives the company a competitive advantage, since a lot of big players are already in Metro Manila.

The decentralization push and the aggressive Build Build Build infrastructure program of the government, which are seen to further unlock land values in the provinces, are also expected to bode well for the company’s projects. 

Last week, the company announced that its board of directors approved the acquisition of various parcels of land amounting to 885,050 square meters and the entrance of the firm into joint ventures for 634,315 square meters.

Meanwhile, SLI chairman Vicente Santos said the company is expecting a 15 percent rise in sales this year, driven by the performance of its marketing teams.

Among the companies in charge of selling and marketing Sta. Lucia developments include Santa Lucia Ventures, Sta. Lucia Global, Royale Homes, Orchard Property Marketing Corp., Mega East, Fil-Estate Group, One Premiere Land and Asian Pacific.

As of end-September 2017, SLI booked P2.795 billion in revenues, up 17.7 percent from the P2.37 billion it recorded in the same period last year.

SLI executive vice president and chief financial officer David dela Cruz said bulk of SLI’s sales are still expected to come from the company’s residential segment, particularly from subdivision development.

“We will continue to be a subdivision developer as this segment, comprising over 70 percent of our development assets, has always been our expertise. Office and malls are assets that we shall invest in also, but only to the extent that it complements the residential components,” Dela Cruz said.

He said the firm is also optimistic of their prospects as most of SLI’s projects are located in the provinces, where property prices are not likely to be volatile.