Sta. Lucia allots P5.62 billion for capex

MANILA, Philippines — Listed real estate developer Sta. Lucia Land Inc. is beefing up its capital spending this year to develop more projects and further expand its land bank.

Sta. Lucia has earmarked P5.62 billion for its capital expenditures this year, of which P4.5 billion will be used for project development and P1.12 billion will be utilized for land acquisitions.

The company said the amount would be funded by its capital resources.

Last year, Sta. Lucia allocated P5.04 billion for project and capital expenditures to meet the rising demand for real estate.

For its expansion plans, the company said it continues to selectively explore land acquisitions, focusing on key emerging areas where it has successfully developed and sold projects.

Sta. Lucia has expressed intentions to acquire properties located in Laguna, Batangas, Bulacan, Davao and Cotabato.

For joint ventures, the company has historically adopted a business model where it enters into joint venture arrangements with landowners for the development of raw land into future project sites in order to reduce land capex and substantial financial holding costs from owning land for development.

Sta. Lucia said it is looking at acquiring interest in several new areas through joint venture agreements for the next five years.

It said new joint ventures being targeted in Cavite, Iloilo and Davao are expansions of existing projects and can be found in contiguous lots.

As of end-2023, the company has developed over 12,000 hectares of land into over 280 projects strategically located in 13 regions and over 70 cities and municipalities in the country.

Sta. Lucia is the flagship property development arm of the Sta. Lucia Group of Companies, which is controlled by the Robles and Santos families.

The firm is principally engaged in real estate development, both horizontal and vertical, in various locations across the country.

It aims to emerge as the top real estate company in the country not just in terms of size, but also in terms of more significant quality projects, quality business plans, growth, returns and innovation.

Overall, the Sta. Lucia Group has built a track record in the area of horizontal residential developments, particularly gated subdivisions, and has expanded into vertical developments, mall operations, housing construction and marketing.