Upscale leisure developer Landco Pacific Corp. (Landco) said it has set aside capital expenditure (capex) of P9 billion for the next five years to fund its expansion.
In 2013, the company’s capex stood at P1 billion.
“I have our capex requirement for the next five years. We’re looking at spending about P9 billion, including the finishing of all our existing projects and launching new ones,” Alfred Xerez-Burgos, president and chief executive officer of Landco, told The Manila Times on the sidelines of the CEO Awards on Thursday.
“There are several [challenges for the business]. It depends on the area where we are operating, such as for example, in Davao, the challenge for us is to buy more land for expansion because the inventory is going too fast and our problem is we’re not able to cope with demand. So that’s the challenge—to buy more properties,” Burgos said.
Landco sales in 2012 rose 17 percent to P3.09 billion from P2.65 billion in 2011.
The company said sales were driven by earnings from the Urban and Visayas-Mindanao Communities, which reached P1.63 billion, Hometown Communities which netted P760 million, and Leisure Communities which made P703 million.
Tribeca Private Residences in Sucat, Muntinlupa City remained its biggest sales driver, posting P1.01 billion in sales. Playa Azalea in Samal, Davao del Norte is second, earning P373 million.
Landco recently launched Nautilus, the first tower of its upcoming seaside condominium development called Playa Calatagan Residences. A total of three buildings are set to rise in Playa Calatagan Residences.
Landco’s beach resort amenity, Aquaria, is expected to rise in Calatagan, Batangas.