GLOBAL-Estates Resorts Inc. (GERI), an 82.3-percent subsidiary of property giant Megaworld Corp., said on Thursday it expects to quadruple its rental income by 2020 to P650 million.
The company said construction of new commercial and office towers in its various tourism estates across the country is under way, which would help boost the company’s rental income.
“In three years, our target rental income is P650 million, which is four times our rental income this year. We want to build our recurring income portfolio to ensure a stronger bottom line,” GERI President Monica Solomon told the Philippine Stock Exchange.
This year, the company’s rental income is expected to reach P150 million, generated from its office and commercial retail spaces at its properties in Pasig City, Laguna and Batangas.
Within the year, the company will open retail spaces in Southwoods Mall and Southwoods Office Tower, situated at the 560-hectare Southwoods City. Another row of retail spaces will also open in Boracay Newcoast.
In the next three years, GERI will launch more integrated lifestyle communities (ILCs). This concept of property development was rolled out by the company when it launched Eastland Heights in Antipolo late last year.
ILCs are residential properties that differ from townships, as ILCs focus on an expansive residential development with commercial components and with nature as the extended amenity of the community, according to GERI.
“We have three ILCs in our pipeline for launch before 2020,” Solomon said. “These developments are all in the south of Metro Manila where there is still abundance of nature.”
To date, the company has six integrated leisure and tourism estate developments across the country covering around 2,786 hectares of land.
The projects are Boracay Newcoast (150 hectares), Twin Lakes in Laurel, Batangas (1,200 hectares), Southwoods City at the boundaries of Cavite and Laguna (561 hectares), Sta. Barbara Heights in Iloilo (173 hectares), Alabang West in Las Pinas (62 hectares), and Eastland Heights in Antipolo (640 hectares).
Megaworld said it has taken an aggressive role in transforming GERI’s vast land bank into integrated urban townships, a concept that Megaworld says it pioneered in the Philippines.