LISTED property developer Sta. Lucia Land Inc. (SLI) said on Friday it created a new unit to spearhead the development of its current and future commercial properties and boost recurring income to 40 percent of revenues in the next two to three years.
In a disclosure to the Philippine Stock Exchange on Friday, SLI said that in setting up a commercial business unit, “the main objectives of the Group will be to increase recurring income and improve property values either through project development or through lease income.”
“We will leverage our expertise in retail, mall management and resorts operations as we expand our commercial assets portfolio to complement our residential developments. We would like to see a revenue mix of 60 percent-40 percent real estate sales to recurring income ratio in the next 2-3 years,” SLI executive vice president and chief finance officer David Dela Cruz said in a statement.
The commercial business unit “will also be supporting the efforts of the Company in terms of land banking, business development and master planning,” SLI said.
SLI has five commercial developments in the pipeline: three business-oriented developments and two residential communities with commercial components.
The business establishments include Sta. Lucia Business Center, a six-storey commercial building situated on a 3,955 square meter lot in Pasig City, and Neopolitan Business Park in Fairview, Quezon City, a 22-hectare business park near the site of one of the stations of the MRT 7 project which will offer 32,858 square meters of commercial space.
SLI also plans to put up the Davao Riverfront Business Park, 60-hectare master-planned community, which will feature a 45-hectare business park, a 10-hectare residential subdivision, and a 5-hectare tourism center. A total of 195,176 square meters are allocated for commercial use, according to SLI.
For its residential communities, SLI plans to develop Greenmeadows, a 172-hectare residential community in Iloilo, with 7,084 square meters (sqm) allocated for commercial use and Ponte Verde, a 28.5-hectare residential community located right across Davao International Airport with 31,402 square meters earmarked for commercial use.
Moving forward, the company plans to allocate commercial development portions in projects to be developed in the 4.18 million square meters of joint venture agreements and 3.65 million square meters of land acquisitions that its board of directors approved this year.
“SLI currently has a 220,000 sqm total gross floor area mall in Rizal with a gross leasable area of 128,092 sqm,” the company said.