Filinvest Land hikes capex budget by 30%

Written by Honey Madrilejos-Reyes / Reporter

Wednesday, 29 April 2009 20:11

DESPITE the impact of the prevailing global financial setback, the Gotianun-led property firm Filinvest Land Inc. (FLI) is hiking its capital spending by 30 percent this year to P5.3 billion from P4.1 billion a year ago to fund various residential projects. Interviewed at the sidelines of the company’s annual stockholders’ meeting on Wednesday, president Joseph M. Yap told reporters their plan to launch 29 new projects and phases this year with an estimated total sales value of P7.4 billion across all market segments. “We plan to launch more phases in our ongoing mid-rise projects in Ortigas Extension and Marcos Highway in Pasig City, as well as in Davao and Cebu. We will also launch a similar project in a new location in Santa Mesa, Manila,” he said. Also in the pipeline is a high-rise project in Makati City. With an estimated project cost of P1.5 billion, The Linear will feature two residential towers and a podium with commercial spaces. “The project will offer affordable residential condominium units at the periphery of the Makati Central Business District. We are targeting to break ground before the end of the year,” added Yap. The capex budget will be supported by a combination of internally generated funds and some bank borrowings. FLI, according to Yap, is also finalizing the masterplan for the development of the 50.6-hectare South Road Properties in Cebu City. Under its agreement with the local government, 40 hectares will be developed in four phases over a 20-year period. The remaining 10.6 hectares will be converted into three or four mixed-use clusters that will include hotels, commercial or retail space, offices and residential condominiums. The company plans to launch the first project by the end of the year or early 2010. For the business process outsourcing (BPO) market segment, Yap said the company is putting up two new buildings—Vector One and Vector Two—within the Northgate Cyberzone in Alabang. Seen to be completed within the year, the buildings will add another 35,600 square meters (sq m) of gross leasable space to FLI’s office building portfolio, bringing the total close to 168,000 sq m. “We are aready to take advantage of the opportunities as they arise…We believe that the demand for our main business which is mass housing will remain strong,” said Yap. From January to February this year, FLI’s sales reservations were up 13 percent year-on-year to P1.3 billion from P1.15 billion. At the end of 2008, the company’s net profit amounted to P1.86 billion, up 28 percent from the P1.45 billion it made the year before. The growth was on the back of a 9 percent rise in revenues to P5.27 billion, a 9-percent improvement over the P4.77 billion generated the previous year. Real-estate sales accounted for 67 percent of the total revenues with P3.51 billion, an 11-percent growth year-on-year. Rental income likewise grew by 11 percent to P1.14 billion over the same period. Despite the current global economic crisis, FLI’s core business of residential housing for the socialized, affordable and middle-income markets, continue to remain robust. FLI said total residential sales reservations for full year 2008 reached a record P6.6 billion, 32-percent more than the previous year. Meanwhile, FLI has deferred the appointment of an auditor for 2009 to 2010, “pending the review by the audit committee” of the company’s audit requirements. FLI also told regulators that the board, which appoints the external auditor, will take into consideration “the practice of the Securities and Exchange Commission to rotate external auditors or the handling audit partner every five years.” SGV & Co. is currently FLI’s external auditor. It billed Filinvest P1.085 million and P976,5000 for fiscal years 2007 and 2008, respectively. In an earlier filing in connection with its annual stockholders’ meeting, the company said “there has been no disagreement with FLI’s independent accountants on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure.” (With Emeterio Sd. Perez)