Filinvest eyes new projects in Cubao, Daang Hari

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Property developer Filinvest Land Inc. (FLI) said it will launch a 20-hectare subdivision along Daang Hari in Las Pinas this year and a 1.2 hectare integrated mixed-use project in Cubao, Quezon City next year.

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FLI President Josephine Gotianun-Yap said the Daang Hari subdivision will cater to the high-end market with the lots priced at P45,000 per square meter and about 4,000 houses at P2 million to P2.5 million each.

The subdivision project is seen to bring in P9 billion in revenues, Gotianun-Yap said after the company’s annual stockholders meeting on Friday.

She said the 1.2-hectare Cubao project will be called “Activa,” a mixed-used integrated project comprising of a “four-storey commercial retail mall, two office towers for the business process outsourcing sector, a residential condominium building, and a versatile office-residential tower.

“This project is under schematic planning at present and it will start construction next year,” Gotianun-Yap said.

“There are effectively four towers and a four-storey retail mall. There is also a hotel, a brand which we have not yet announced,” she said.

FLI Investor Relations Head Melissa Ortiz said the company has P24 billion capital expenditure and about 55 percent of the programmed spending will be for launches or recurring income-generating projects.

Gotianun-Yap said the company may tap the debt market and will likely issue retail corporate bonds to raise funds to partially finance this year’s capex.

She said majority of the projects launched in the past few years “will be turned over this year and next year,” which amounts to about 50 percent additional gross leasable area (GLA) of recurring income-generating projects such as malls and offices.

The FLI president said the firm is “targeting a range anywhere from P30 billion to P40 billion recurring revenues” by the end of next year, which will be boosted by the flow of incomes from additional recurring portfolio mostly capping off by 2016.

At present, its portfolio of recurring income-generating projects is nearing P30 billion, Gotianun-Yap said.

To date, the company has 2,403-hectares land banked, which are distributed in four areas: Greater Manila (916 hectares), Luzon excluding Greater Manila (1,244 hectares), Visayas (91 hectares) and Mindanao (152 hectares). The land is good for about 10 years for horizontal projects and four to five years for vertical tower projects.

This year, FLI is set to launch another P16.5 billion worth of residential projects from the P12.5 billion worth of launches in 2014.

Aside from residential, the company is on track in tripling its recurring income portfolio of retail and office buildings in five years towards 2019 to about 970,000 sqms of gross leasable area, Gotianun-Yap said.

“For 2015, we are adding around 67,506 sqms of office space and 85,034 sqms of retail space to our portfolio,” she said.

By end-2014, FLI has raised P7 billion from the issuance of its seven-year and 10-year bonds which will finance the company’s spending in the next 15 months. The P7-billion fresh funds from the bond sale will be used for repayment of debts (P4.95 billion), and funding capex in the fourth quarter of 2014 and in 2015 (P2.19 billion).

In 2014, the company’s net income grew by 16 percent to P4.6 billion from 2013’s P3.98 billion. Revenues likewise rose by 22 percent to P16.9 billion due to sustained residential performance and strong growth in its office-leasing portfolio.

Incorporated in 1989, FLI is the property unit of Filinvest Development Corp., mostly engaging in township projects that consist of retail, residential and office spaces.

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