AboitizLand earmarks P2.3B for Cebu projects

Despite the projected slowdown in consumer spending, AboitizLand Inc., is set to  push through with its plan with an earmarked P2.3 billion for real estate projects in Cebu this year.

AboitizLand Inc., president and chief operating officer (COO) Andoni F. Aboitiz said that the largest capital expenditure of the company is the development of its Urban Village development called “Persimmon”, of which P2 billion will be spent for the entire project.

The company already kicked off with the construction of a Business Process Outsourcing (BPO) building at the Mactan Export Zone (MEZ-2) called iMEZ,  that would cost at least P160 million for the building construction alone. The five-story building is projected to be completed by next year.

Also, AboitizLand will open its phase-2 development of the chic residential project in the Southern part of Metro Cebu, the Kishanta. The company is going to invest an estimate of P150 million for the horizontal development of Kishanta subdivision.

“There is always a need for housing, although interest rate is seen to creep up due to the double-digit inflation and high fuel prices. But we would rather continue on our project stream, rather than wait for the [perfect] timing,” Aboitiz said.

The threat on consumer budget tightening has not discouraged the AboitizLand’s expansion mode, hoping that this economic challenge would only last for a short term.

 “We are hoping that this is only a short term situation,” Aboitiz said adding that despite the volatility of the market conditions, planned expansion plans are pushing through.

Aboitiz believes that there is still a large untapped market for residential unit components, thus the company remains active in their projects, especially for residential developments.

The company is hitting active markets in the real estate sector, these are BPO and commercial buildings, and residential units including condominium, and medium to high-end subdivision with lot-only or house-and-lot offerings.

Although, the expected rise of interest rate in the consumer lending facilities offered by the banks, which include housing loans, would bring about impact in the consumer’s spending decision for residential acquisition plans, Aboitiz said this has not discouraged the company to momentarily stop the planned projects. – Ehda M. Dagooc