LISTED real estate firm IRC Properties Inc. has set a capital expenditure (capex) of P800 million to P1 billion for 2015, most of which will be used to clear land titles and finance projects.
IRC president Esteban Pena Sy told The Manila Times that the 2015 war chest of up to P1 billion will be used for the further clearing of land titles at its 2,200-hectare lot in Binangonan, Rizal as well as on ongoing and future horizontal housing projects in the area.
The capex will be sourced from internally generated funds and a planned private share placement worth P500 million to P600 million in the first quarter of the year.
Last July, Pena Sy said that the company was still in the process of clearing the titles of about 20 to 30 percent of the land within its Binangonan property because numerous individuals were claiming parcels of land in the area.
As of December last year, the company had already cleared about 142.4 hectares of the Binangonan land and has in its possession 191 titles of the cleared properties.
Some 60 hectares of the 2,200-hectare Binangonan lot have already been cornered by several property firms. These include a 15.12-hectare joint venture development with Dreamhauz Management and Development Corp. signed in August 2010; an 8.72-hectare joint development agreement with Dell Equipment & Construction Corp. forged in July 2012; an 18-hectare lot sold to Hundred Lake Development Corp. in September 2013; and another 18 hectares sold to Amaia Land Corp. for development of low-cost houses funded by the Home Development Mutual Fund (Pag-Ibig).
IRC narrowed its net loss in the first nine months of 2014 to P13.62 million from P47.71 million a year earlier on lower operating expenses, even as revenues slipped to P8.38 million from P11.81 million previously.
Incorporated in 1975, IRC was first involved in minerals, oil and gas exploration and later changed its operations to real estate.