Eton Properties Philippines Inc. (EPPI), the property business unit of tycoon Lucio Tan, has allocated capital expenditure (capex) of P10 billion for the next two years as the developer expands its office portfolio.
“Over the immediate horizon, EPPI will be aggressively pursuing recurring income streams from additional commercial developments, through rental of more office and retail space,” EPPI president and chief executive officer Lucio Tan, Jr said on the sidelines of the company’s annual stockholders’ meeting held on Friday.
“The company continues to ride on robust growth in the BPO [business process outsourcing]sector, through the development of more office buildings in strategic locations,” he added.
EPPI officer-in-charge Joseph Chua acknowledged it will “take time,” or years before the company transforms itself from being sales-driven to having a strong recurring income.
Having focused on residential development over the years, EPPI’s profits mostly depended on earnings from each unit sold.
“We’re going to launch projects in the BPO sector. But in residential, we have to be very selective,” Chua added.
For this year, the company targets to build four to five office buildings, mostly in Makati City.
The company is also in the process of re-planning its township projects to put up more BPO buildings in Eton Centris in Quezon City and Eton City in Laguna.
“The new master plans for both Eton City and Eton Centris shall be undertaken in phases, with office and commercial developments placed at the forefront of activities in the coming years,” Tan said in his report.
Chua said the company may postpone plans to build a residential component in the 12-hectare Eton Centris as it considers adding six more BPO buildings to the complex over the next few years.
Also, the company is looking to beef up its hotel and leisure business. Currently, the LT Group, Inc., which is the parent company of EPPI, owns the Century Park Hotel in Manila.