FILINVEST Development Corp. (FDC), the holding firm of the Gotianun-led businesses, has set aside a record capital spending of P38 billion this year as it plans to strengthen its power and real estate businesses.
FDC president and chief executive officer Josephine Gotianun-Yap said that of the P38-billion capex this year, about P25 billion will be allocated to the real estate business, including listed Filinvest Land Inc. (FLI) and Filinvest Alabang, Inc.
Last year, the group’s capex stood at about P27 billion.
“We are investing for medium-term growth,” Gotianun-Yap told reporters in a briefing held Thursday night.
She said the company’s bullish stance is supported by its strong performance in 2013.
In 2013, FDC’s consolidated gross revenue reached P34.8 billion, a 17 percent increase over the previous year’s P29.8 billion, while its net income was 11 percent higher at P6.5 billion from P5.8 billion in 2012.
“FLI will be undertaking a robust program into recurring investment properties over the next few years,” Gotianun-Yap said.
Meanwhile, P9 billion of this year’s capex has been earmarked for the construction of a power plant in Misamis Oriental under the group’s power arm, FDC Utilities, Inc.
Scheduled to come online in 2016, FDC’s 405-megawatt coal-fired power plant will be the largest power plant in Mindanao and is expected to alleviate the region’s ongoing power crisis.
The remainder of the capex will be set aside for the group’s hotel, banking and sugar operations, Gotianun-Yap said.