To spend P9B this year on project lineup
THE Lucio Tan-led property developer Eton Properties Philippines Inc. is programming P28-billion in capital expenditure (capex) over the next five years on the back of its goal to ramp up office tower projects to boost its recurring income inventory.
“Over the five year period, we’re earmarking at least P28 billion spending, beginning 2015,” Eton Deputy Chief Operating Officer Josefino C. Lucas said in a press briefing after the company’s annual stockholders meeting on Friday.
This is in line with Eton’s target to double its gross leasable area (GLA) in three to four years from its current recurring income portfolio amounting to 156,000 square meters of GLA.
The company is budgeting P9 billion capex for 2015, which is more than double the P4.3 billion spent in 2014. This is a part of the P28-billion spending program, focused to raise Eton’s recurring income portfolio to 50 percent of the total revenue mix compared to the current 70-30 ratio in favor of residential sales.
The P9 billion spending will be divided equally to ongoing residential projects and new mixed-use developments and office tower projects lined up for this year.
Planned project launches this year included a high rise residential condominium tower called Eton WestEnd Square; three office towers; and a mixed use development consisting of a boutique mall and office space intended for the business process outsourcing segment.
With the lineup of projects, the company hopes to hit P1.1 billion to P1.5 billion in leasing revenues by the end of the year.
Last year, the company earned higher net income than in 2013, reaching P120 million from P105 million a year ago.
Eton, which accounts for a 3 percent share of the revenues of Lucio Tan-led conglomerate LT Group Inc., is a private property firm engaged in the development of mixed use, residential, commercial office and retail projects.