PROPERTY developer Sta. Lucia Land Inc. (SLI) has formed a commercial business unit to handle development of current and future commercial projects, the company announced in a disclosure to the Philippine Stock Exchange (PSE).
Projects to be spearheaded by the new unit include office spaces, retail and mall developments, industrial developments, institutions such as schools, and tourism and leisure assets.
“The main objectives of the Group will be to increase recurring income and improve property values either through project development or through lease income. It will also be supporting the efforts of the Company in terms of land banking, business development and master planning,” the company said in its statement to the PSE.
SLI identified five projects that the new commercial business unit would initially concentrate on. Two of these, the Sta. Lucia Business Center in Pasig City and the Neopolitan Business Park in Fairview, Quezon City, were already announced by the company earlier in the month, as was the Greenmeadows residential community in Iloilo.
The Sta. Lucia Business Center is a proposed commercial 6-story building on a 3,955 sqm property which will be leased out to offices and commercial retail establishments. It will located along the lay-by connecting to the LRT Line 2 extension which will greatly ease traffic congestion in the area once finished and operational, and at the same time provide convenience for commuters as a transit point to Cainta, Taytay and Pasig City.
Likewise, 22-hectare Neopolitan Business Park in Fairview, Quezon City will be located near the site of one of the future stations of the MRT Line 7.
The Greenmeadows project in Iloilo is primarily a residential community, which SLI describes as Iloilo’s first residential lake community, but will have 7,084 sqm of its total 172 hectare area set aside for commercial use.
SLI also announced two new projects in Davao. The first, called Ponte Verde, is a 28.5-hectare residential community located across from the Davao International Airport, and will have an area of 31,402 sqm earmarked for commercial use.
The second, larger project is the Davao Riverfront Business Park, a master-planned community comprising a 45-hectare business park, a 10-hectare residential subdivision, and a 5-hectare tourism center. Within the 60-hectare area, major tourist attractions like the Crocodile Park, Davao Butterfly House, and Tribu K’ Mindanawan Cultural Village can be found. The area is also home to St. Paul’s College–one of Davao’s premiere schools, and Rancho Palos Verdes Sports and Country Club–Mindanao’s first one-stop sports and recreation spot for the whole family.
The disclosure to the PSE also pointed out that SLI’s board of directors has already approved a total of 4.18 million square meters of joint venture agreements and 3.65 million square meters of land acquisitions for year 2016 to date, and that these new projects will have a significant portion allocated for commercial development.
“We will leverage our expertise in retail, mall management and resorts operations as we expand our commercial assets portfolio to complement our residential developments,” SLI Executive Vice President and Chief Financial Officer David M. Dela Cruz said in a statement. “We would like to see a revenue mix of 60 percent real estate sales to 40 percent recurring income in the next two to three years.”
SLI’s largest current commercial project is the Sta. Lucia East Grand Mall in Cainta, Rizal, which has a gross leasable area of 128,092 sqm out of a total gross floor area of 220,000 sqm.