LISTED property developer Anchor Land Holdings Inc. plans to build another warehousing facility in response to strong demand from merchants in the Binondo area, a company official said.
In a recent interview, Anchor Land Holdings chief executive officer Steve Li told reporters that they are looking to put up a new warehouse facility in the Binondo area by next year.
“As of now we have four warehousing establishments, and we are going to start the construction for another one…another warehouse building by the first quarter of next year,” Li said.
The upcoming project will be a 22-story warehouse building that will be located on Juan Luna Street in Binondo, Manila. Anchor Land’s latest warehouse establishment, One Soler, is set to be turned over this month, according to Li.
He noted that there is still strong demand for warehousing in the Binondo area driven by the shopping centers in the vicinity.
“In Binondo, if you look at it from the Divisoria development from 168 to 999 [shopping malls], we see that there’s huge shopping centers but it’s just that space is very expensive so most shopping centers, they don’t provide sufficient warehouse facilities. So we want to provide in that perimeter,” Li said.
Li said they are careful when choosing locations because the warehousing industry is very location-specific.
“Warehouse is very specific. It’s not just about finding a place and providing warehouse facilities. So we are very careful in selecting a location for our warehouse investment,” Li said.
Anchor Land’s warehousing business is part of its recurring portfolio, which it aims to strengthen in the coming years.
“Based on our target, we think in five years’ time, our recurring income should be around 20 percent of our overall contribution,” Li said.
In 2015, rental income accounted for 6.9 percent of the company’s total revenues, with real estate sales accounting for the bulk or 85 percent of income.
Anchor Land recently announced its foray into the hotel business, saying it aims to hit the 1,000-hotel room mark by 2020, and in urban dwelling projects, where it targets to put up around 10,000 bed spaces over the next five years.