ANCHOR Land Holdings Inc. has earmarked P6.5 billion for capital expenditure this year to launch three new projects in various property sectors.
Capex this year is almost 30 percent higher than last year’s P5 billion.
“Basically for this year, we are allocating P6.5 billion for our 2016 capex, Anchor Land chief executive officer Steve Li told reporters on the sidelines of the firm’s annual stockholders’ meeting.
He said 30 percent of the capex will be allocated to landbanking initiatives.
The listed property developer is launching the Anchor Grandsuites and the T.Alonzo project in its niche market, the Binondo business district.
“[For] Anchor Grandsuites we expect to generate about P7.5 billion. That’s around 400 units. T. Alonzo, we expect to generate around P1.8 billion in sales value,” noted Li.
The firm will also launch a 12-story mixed-use development along ASEANA Avenue in Parañaque City. The ALHI Corporate Office will feature a ground level for retail space, and will offer 65,000 square meters of leasable office space.
“We’re starting the construction by the third quarter of this year. So that would take us around three years to finish,” Li noted.
During the firm’s stockholders’ meeting, Anchor Land President Elizabeth Ventura reported the company has identified a new market to grow its recurring income—the mobile employee and students.
“We have indentified one of the largest markets which we wish to tap, the mobile employee and student segments, a very large and continuous growing market of office employees and students who want to rent temporary, comfortable, dwellings close to their place of work or school. This segment includes employees who are usually employed by BPOs,” Ventura said.
As such, Anchorland will lease out urban dwelling projects.
“Unlike dormitories and bedspaces, our urban dwellings will be comfortable and secure, to meet the fast-paced lifestyle of mobile workers,” Ventura said.
The firm is targeting up 10,000 bed spaces of in the next five years.
“We have identified sites for these projects such as in Pasay, which is near the Bay City; Taguig City, which is close to Fort Bonifacio; along North Edsa, which is close to the burgeoning office space market in Quezon City; and within the University of the East in the University Belt,” Ventura said.
“ . . . We have already identified four locations, we are in the final stage of acquiring all of those properties,” Li said
“Based on our target, we think in five years time our recurring income should be around 20 percent of our overall contribution. So urban dwelling is also part of our recurring income with commercial and hotels,” Li noted.
In 2015, rental income accounted for 6.9 percent of Anchorland’s revenue, with real estate sales the bulk or 85 percent of the total.