AS the Year of the Monkey approaches, Pinnacle Real Estate Consulting Services Inc. likens top property developers to 600-pound gorillas that dominate the jungle of Philippine real estate.
Pinnacle said the Ayala Land Group leads the biggies, with its townships lording different parts of the country and generating a whopping P75.1 billion in revenues in the first nine months of 2015, up 10 percent from last year.
This includes the sale of residential lots and units, and office spaces, as well as commercial and industrial lots.
Leasing revenues, which include the operation of shopping centers, offices, and hotels and resorts, reached P17.2 billion, or 12 percent higher than the P15.4 billion recorded last year.
All of Ayala Group’s units fared well with higher revenues in the first nine months of 2015.
Ayala Land Premier posted revenues of P15.7 billion, up 6 percent from P14.9 billion in 2014. Alveo reported P10.1 billion, up 43 percent from P7 billion a year ago, on the back of its subdivision projects. Avida recorded P10.3 billion, up 12 percent from last year. Amaia registered P2.8 billion or 16 percent higher than in 2014.
Ayala’s socialized housing unit, BellaVita, reported P272.0 million from last year’s P76.0 million, or a phenomenal 257.89-percent rise. The residential business group posted reservation sales of P82.9 billion, up 4 percent from last year’s P79.71 billion.
The group’s shopping centers collected P9.2 billion, 12 percent higher than last year’s P8.3 billion. Office leasing amassed P3.7 billion, 18 percent higher than last year’s P3.1 billion.
Ayala Land’s tourism business meanwhile saw revenues from hotels and resorts reach P4.3 billion, 7 percent higher than last year’s P4 billion.
The SM Group, Pinnacle said, is another “600-pound gorilla” dominating the market, particularly securing its top position in the retail industry.
By the end of 2015, the SM Group will have 55 malls in the Philippines, the largest in the country, and even have six malls in China, for a total estimated Gross Floor Area (GFA) of 8,269,486 million square meters.
Recurring income has been the focus of the SM Group, noted Pinnacle, even securing stable income from office buildings.
On the residential front, the SM Group is selling an average of 15,000 units every year.
Pinnacle said it gets an average of 75,000 licenses to sell yearly for its condominium developments from the Housing and Land Use Regulatory Board (HLURB).
The SM Group, Pinnacle noted, intends to increase its annuals sales to the 20,000-unit level, solidifying its market share in the condominium segment.
Another big “gorilla” is the Megaworld Group that has been busy with its five new townships all over the country, Pinnacle said.
Megaworld had announced its intention to catch up in the retail mall segment by building 20 malls in the next five year.
Megaworld reported to have sold around 80 percent of the 788 residential lots in its 62-hectare Alabang West development, Pinnacle noted, pushing up land values by 19 percent to P56,000 per square meter in just 11 months after the launch of the subdivision.
Meanwhile, former Senator Manny Villar’s Vista Land Group has been pushing major real estate projects all over the country, with the patriarch declaring that he will stay away from politics.
Vista Land, Pinnacle said, already unveiled 27 projects in the previous months that could rake in P20.7 billion of sales, plus additional planned launches with estimated sales value of P15 billion.
The Vista Land Group has been beefing up its AllDay and AllHome retail platforms to drive recurring income, also including office spaces likely to get a slice of the booming Business Process Outsourcing market.
The Vista Land Group also made inroads in the health care business with its 100-bed hospital project in the Daang Hari vicinity.
Vista Land is also bent on keeping its memorial business alive, planning to put at least 100 sites that replicate its 30-year old Golden Haven Memorial Parks business all over the country.
Pinnacle also mentioned the DMCI Group, which will launch nine projects next year with approximately 14,000 units and estimated sales value of P50 billion.
DMCI intends to generate recurring income when it launches its 36-storey office project along Pasong Tamo in Makati City, with over 40,000 square meters of leasable area, subject to some permits and licenses.
Lastly, Pinnacle mentioned Eton Properties, the real estate unit of the Lucio Tan Group.
Eton, Pinnacle observed, would continue to focus on building more office buildings to meet the growing demand from the BPO-IT industry.
Eton has built office buildings with a total leasable area of 124,000 square meters, with 200,000 square meters more of leasable office spaces in the pipeline.
The 600-pound gorillas have also been taking the country’s retail market by storm, dominating the competition as they aggressively expand their retail portfolio, Pinnacle said.
For Pinnacle, the giant gorillas for this segment are the SM Group, Robinsons Group and Cosco/Puregold Group, based on the number of stores.
It noted that the SM Group has 55 department stores, 41 SM Supermarkets, 43 SM Hypermarkets, 127 Savemore stores and 27 Walter Mart Stores, plus its three newly opened Cherry Fooderama stores.
Further widening its vast retail portfolio, the SM Group has entered joint ventures, such as that with Indonesian convenience store Alfamart, to operate initially 50 minimarts, and that with Double Dragon to open 100 CityMalls nationwide.
Pinnacle noted that the SM Group’s partnership with DoubleDragon has already secured more than 30 sites nationwide, and intends to open 25 stores by next year.
Meanwhile, Robinsons Land has 37 malls and operates more than 400 Ministop stores, while the Cosco/Puregold Group has a portfolio of 36 stores with a total Gross Floor Area of 367,000 square meters.
Pinnacle noted that other major property developers like the Ayala Land Group and Megaworld Corporation are also aggressively pursuing their own retail strategies.
“The Ayala Land Group is planning to open at least five new shopping malls in the next few years in line with its goal to earn a net income of P40 billion by 2020.” said Pinnacle in a report.
Similarly, Megaworld is also joining the retail race, as it plans to put up 20 malls in the next five years.
Pinnacle also cited Vista Land and Lifescapes as a major player in the retail arena, as it has acquired Starmalls Inc.
“The Group is integrating its retail platforms with its housing projects and intends to open six to seven ‘All Home’ annually over the next five years,” Pinnacle observed.