Eton expects good prospects this year

Written by Honey Madrilejos-Reyes / Reporter

Sunday, 03 May 2009 18:36

ETON Properties Philippines Inc, (EPPI), the listed property firm of tobacco magnate Lucio Tan, sees a turnaround this year as it expects to post profits on the back of potential revenues from ongoing residential projects. Under the accounting rules adopted by the company, revenues will only be realized based on the percentage of completion of a residential project. EPPI is building The Eton Residences Greenbelt, Eton Baypark Manila, Eton Emerald Lofts, Eton Parkview Greenbelt, One Archers Place, Belton Place, South Lake Village at Eton City, and The Manors at North Belton Communities—most of which have been substantially sold. “We expect 2009 to be a banner year for EPPI. Our numbers will dramatically improve starting this year as we begin to recognize revenue from our residential projects and start earning recurring lease income from our office projects in Eton Cyberpod Centris and Eton Cyberpod Corinthian as well as the commercial leasing operations of Centris Station and Centris Walk,” said president and chief operating officer Danilo Ignacio. Full-blast construction activities in Eton Cyberpod Centris and Eton Cyberpod Corinthian increased the company’s property assets by 1,031 percent to P543.26 million while real estate inventories of residential projects under construction grew 176 percent to P311.29 million. Last year, despite the onset of the global financial turmoil, EPPI said it posted a 207-percent rise in customer advances and deposits reflecting strong reservation sales for all residential projects. The company achieved better consolidated revenues of P89.89 million, 334-percent higher than the previous year. However, a loss of P125.76 million was registered since no revenue has been recognized due to the minimal construction activities in its residential projects. Substantial scheduled construction work of its residential projects started this year. The company, formerly Balabac Resources, commenced operations in February 2007 and has since evolved into a full-range property developer with a wide portfolio of projects from mid-range to high-end residential developments, office and commercial projects and township developments. It has earlier announced a budget of over P10 billion from 2007 to 2011 to bankroll several development projects in Metro Manila and in key provincial cities.