Robinsons investing P25b in malls, offices
Robinsons Land Corp., the property unit of the Gokongwei group, said Tuesday it will spend P24.6 billion in 2018 to construct new malls, offices, hotels and mixed-used projects as it expects net income to substantially increase this year.
RLC said in a regulatory filing this year’s programmed capital expenditures would be financed by internally generated cash from operations and borrowings.
The P24.6-billion spending plan for 2018 excluded capital expenditures for ongoing residential developments in China, it said.
The real estate developer said of the total capex, it would allocate 56 percent for the development of new malls and expansion of existing ones, offices and hotels, and earmark 12 percent to mixed-used developments and masterplanned communities.
It said 13 percent would go to the completion of ongoing residential property developments, while the remaining 19 percent on replenishing the company’s landbank.
RLC said it was scheduled to open four shopping malls this year in Ormoc, Pavia (Iloilo), Tuguegarao and Valencia (Bukidnon).
The new malls will increase RLC’s leasable mall area to 1.508 million square meters from 1.389 million sqm as of end 2017.
The property firm also expects to complete three hotels this year, including Dusit Thani in Mactan, Cebu; Summit Hotel in Tacloban City; and Go Hotel in Iligan City. The new hotels will boost by 23 percent the company’s number of hotel rooms to 3,086 by end-2018 from 2,516 as of end-2017.
RLC said that for office developments, it would end 2018 with 518,000 sqm of leasable office space with the completion of four office buildings.
The company said that with a healthy pipeline of investment projects, it expected recurring income to rise this year.
RLC said the residential business was also expected to sustain its growth momentum this year as reservations sales in the first quarter jumped 100 percent to P3.68 billion.
RLC said it met the construction threshold that would allow it to apply for a license to sell or to start pre-selling its residential project in Chengdu, China.
RLC acquired an 8.5-hectare property in Chengdu, China for $207 million in 2015, making it the company’s first residential development outside the Philippines.
RLC reported a net income of P5.8 billion in 2017, up 2 percent from the 2016 level even as revenues slightly dipped to P22.5 billion from P22.8 billion.