Property Company of Friends Inc. (Profriends) has not launched any new project as the developer is focusing on meeting the housing backlog at its Lancaster New City development in Cavite province.
“Actually there’s no new launch, just delivering units of previous sales that we’ve done,” Chief Finance Officer Rosanne Duavit-Santiago said in an interview.
“The launch of new projects will only happen after we’ve caught up with our construction backlog,” she said.
Santiago noted the company intends to deliver 500 to 550 units and top its current rate of 472 units to meet its deficit.
“With that number of units, we should be able to wipe out majority of the backlog by end of October this year,” she said.
With this goal in mind, the company has set aside the concept of building what has been pre-sold.
“What is happening right now is that our construction is dependent on the area… not… on sales made by the marketing. We just have to make sure that the area that we complete… that the small pockets of areas not sold will be sold. That’s what we’re pushing on right now,” Santiago noted.
“The fast tracking is with the construction of the new units, but the development of the next phase is not being fast tracked. It’s on stream. So it’s the construction of the housing units that are being fast tracked. The next development is being timed for this next wave of sales,” she added.
The current focus is on constructing units for Zone One of Lancaster. The next phase of development in the 1,500-hectare property that straddles Kawit, Imus, and General Trias will cover Zone Two of the project.
At this point, Profriends has no plans to embark on new projects in other areas of the country.
The focus of development is to consume the existing landbank of 1,800 hectares, Santiago said, noting that Cavite accounts for most of the land asset and Iloilo for more than 100 hectares.
Profriends reported a net income of P563.2 million in the first quarter of the year, up 251 percent P160.4 million a year earlier.
In August 2015, GT Capital Holdings Inc. acquired a 22.68 percent stake in Profriends for P7.24 billion. The transaction gave the holding company of business tycoon George Ty the option to raise its equity stake in the mass housing developer to 51 percent over the next three years.