Property firms to gain from federalism – Vista Land
MANILA, Philippines – Property developers will likely benefit from federalism, one of the key campaign promises of presumptive president Rodrigo Duterte, said Vista Land & Lifescapes, Incorporated, the integrated property firm owned by the Villar group.
Vista Land president and CEO Manuel Paolo Villar said property developers are expected to benefit from federalism as this will further spur developments in other key cities outside Metro Manila.
"I think it benefits everybody and it benefits us because even before he (Duterte) decided to run (as president), we have already pursued developments outside Metro Manila. It benefits us just because federalism means that there will be developments outside Metro Manila," Villar said.
Duterte earlier announced plans to push for a federal form of government to empower the provinces.
At present, Vista Land has presence in 95 cities and municipalities and it plans venture to into 5 more within the year to hit its target of 100. (READ: Entrepreneur Manny Villar: 'I dont like politics anymore')
Over the past years, Villar said the company has been expanding in areas outside Metro Manila and that it has been bullish in Mindanao.
Except for Metro Manila, Villar said Davao has the most number of Vista Land projects compared to other key cities in the country.
Slowdown in OFW sales
Meanwhile, Vista Land also reported that its net income for the first 3 months of the year grew 17% to P2.1 billion ($45.01 million) from P1.8 billion ($38.58 million) in the same quarter last year.
Consolidated revenues for the quarter ended at P7.9 billion ($169.34 million), up by 6% than the P7.1 billion ($152.20 million) in the same period a year ago.
Villar said the single digit growth in the company’s revenues and reservation sales in the first quarter was due to the slowdown in sales to the OFW market.
Villar added that OFW sales, which account for 60% of the company’s total residential sales, were affected by the slump in world oil prices.
For the rest of the year, Villar expects growth in real estate revenues to remain at single digit level.
Meanwhile, recurring revenue for the quarter significantly increased by 89% to P944 million ($20.23 million) from P498 million ($10.67 million) in the same priod last year, as the company added 221,748 square meters of gross floor area opening 4 malls and one BPO commercial center.
"2016 promises to be another record year for Vista Land. We are pleased to have been able to achieve solid growth over the past years and should have no problem continuing the trend this year," Vista Land Chairman Manuel B. Villar Jr said.
"Our positive outlook for the year is due to the expansion of our commercial assets in addition to our core housing business on the back of a sound Philippine macroeconomic fundamentals and hopefully with the new government’s push to accelerate infrastructure development," he added. – Rappler.com
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