Rockwell Land Corp., the property development arm of the Lopez Group, has allocated P10-billion for capital spending this year, part of which will be used for the listed firm’s first venture into the hotel and leisure business.
In a briefing on Wednesday, Rockwell Land Chief Financial Officer Ellen Almodiel said the company has expanded the amount of capital expenditure (capex) for the entire 2014 from the P7.5 billion it spent last year.
“Our capex this year, without new property acquisitions, is P10-billion,” Almodiel said.
Overall, the company is looking to close this year with another record financial performance.
Padilla told reporters Rockwell is aiming to boost its income by as much as 25 percent this year from 24 percent in full-year 2013.
“The growth drivers will be the same – the new and existing projects,” Padilla said.
In 2013, Rockwell’s net income grew 24 percent to P1.4 billion from P1.1 billion posted in 2012.
Reservation sales surged 37 percent to P12.6 billion from P9.2 billion.
At the company’s annual stockholders meeting, Rockwell Land President and Chief
Executive Officer Nestor Padilla said although the company continues to be on the lookout for new properties to acquire, the firm’s landbank remains good for three to four years.
Padilla said the company’s first venture into the hotel and leisure industry involves building a service apartment development within the Rockwell Center complex in the financial district of Makati.
Developed by the its hotel and leisure arm Rockwell Hotels and Leisure Management Corp., the company is set to open “Aruga Serviced Apartments” on June 1st.
Aruga, according to Rockwell assistant vice president Angela Marie Pagulayan, is situated within the group’s residential project, Edades Tower, which will also open this year, along with Garden Villas.
“Basically, it is a building within a building. Aruga will have six floors—from the third to the eighth floor of Edades,” Pagulayan explained.
Aruga will have 114 units ready for occupancy by July, he added.
Set to be launched over the next five years, the two other serviced hotels under the Aruga brand will be located in Ortigas in Metro Manila and in Cebu in the central Philippines.
“About half a billion [pesos]from the company’s total capex this year will be spent on Aruga,” Almodiel said.
Rockwell is also on the lookout for resort properties to acquire and develop in the future, Almodiel added.