Eton Properties to spend P28 billion over the next 5 years
MANILA, Philippines – Eton Properties Philippines Incorporated, the property unit of billionaire Lucio Tan, has earmarked a capital spending budget of P28 billion ($628.55 million) over the next 5 years, to develop and launch residential and commercial projects.
Eton Properties Deputy Chief Operating Officer Josefino Lucas said his company will spend P9 billion ($202.03 million), higher than last year’s P4.3 billion ($96.53 million), to boost its portfolio of residential and commercial projects.
For this year, Eton Properties plans to launch a one-hectare mixed-use development in Makati that will house a high-end residential development, an office tower catering to the business process outsourcing (BPO) industry, and a boutique mall.
The property unit will also start developing its fifth BPO office tower in 12-hectare Eton Centris in Quezon City, and will develop its sixth BPO office in Ortigas.
Eton Properties is also set to complete the master plan of 600-hectare Eton City in Sta Rosa, Laguna, and will start conceptualizing the development of Aurora Heights Residences in Quezon City this year.
For Eton, 2015 marks the start of the expansion of Centris Walk – an upscale lifestyle, dining, and entertainment destination in Eton Centris.
“We are confident that our rental operations will remain strong in 2015. We are experiencing high occupancy rates in our office buildings given the strong demand from the outsourcing industry and we see this trend continuing,” Lucas said.
Eton Properties President Lucio Tan Jr said in his speech during the stockholders' meeting that he remains confident the company can sustain its growth after going through a transition period last year.
"As the Philippine economy remains strong, we are confident that investor interest in our new and upcoming projects will be robust. We plan to introduce new concepts and formats to widen our client base. We will also continue to closely study the property landscape to ensure that our pricing strategies and offerings meet market needs," Tan said.
In 2014, the company focused primarily on the delivery of its projects and the completion of existing developments.
As a result, the company ended 2014 with gross revenues of P2.28 billion ($51.18 million), 38% lower than its 2013 figure. Real estate sales accounted for revenues of P1.54 billion ($34.57 million), down 52% from the previous year, as a direct result of the temporary halt in sales activities.
The company ended 2014 with a net income of P119.86 million ($2.69 million), 14% higher than its 2013 net income of P105.07 million ($2.34 million), indicating improved margins and profitability. – Rappler.com