Sunday, January 28, 2007

Landco sees 50% profit growth this year

By Zinnia B. Dela Peña
The Philippine Star 01/17/2007

 

Landco Pacific Corp., a leisure property development firm controlled by Metro Pacific Investments Corp., expects its net profit to grow 50 percent this year on revenues of around P1.5 billion.

Landco executive vice-president and chief operating officer Francis V. Ceballos said net income is seen to hit P120 million this year on strong sales of its projects in Batangas and Laguna.

Ceballos said the company expects its net earnings to hit P80 million last year, 43 percent higher than the previous year's P56 million.

Sales, meanwhile, are seen to reach P1.2 billion in 2006 compared with P890 million a year earlier.

"Growth was driven by developments in Terrazas de Punta Fuego, Playa Calatagan and Amara in Batangas and Montelago Nature Estates in San Pablo, Laguna," said Ceballos.

Ceballos said ongoing projects like the additional phases at Hacienda Escudero, its joint venture with Sucat Land in Parañaque City, and a high-end resort in Cebu will start contributing to Landco's coffers next year..

At the same time, Ceballos announced in a press briefing yesterday announcing Landco's joint venture with the Villalon family's Genvi Development Corp. for the development of a 210-hectare property in Cebu into a high-end resort estimated to cost at least P5 billion.

Ceballos said development of the project will be done in phases, with the first phase expected to start in the first quarter of the year and will entail around P1 billion in capital.

Landco president and chief executive officer Alfred Xerez-Burgos said the project, which will be developed over a period of up to eight years, is "one of Landco's major projects for 2007 and will be the largest and most ambitious mixed-use residential development in the region."

The project, to be named Monterrazas de Cebu, will involve the development of top-of-the-line residential lots, house and lots, townhouses and condominiums, a resort-inspired clubhouse, lakes and fishponds, and meditation gazebos.

For his part, Genvi chairman Augusto Villalon said: "Unlike other developments in the Philippines that try to copy foreign locations, this development is different. It is a development proud to be Cebuano. It is has pride of place. It is a destination. The distinctive look is designed to be in harmony with a resort landscape."

"We will create a landmark. And if successful, we will have a platform for future business deals," Ceballos said.

Funding for the project will come from internally-generated cash and pre-selling of some projects.

Ceballos said Landco is doubling its capital budget this year to P2 billion to take advantage of the boom in the property sector.

Landco is aiming to become a leading player in the real estate industry in the next five years as it seeks to build a track record of highly successful developments, underpinned by a strong financial base and organization.

Calatagan covers 74 hectares, with the seaside residential subdivision spanning 62 hectares while its joint venture condominium project will take five to 10 years to complete with an estimated cost of roughly P4 billion to P5 billion.

The redevelopment of Hacienda Escudero, on the other hand, will entail P10 billion in capital over a 10 year period. This project is in partnership with the Escuderos, through Villa Escudero Plantations and Resorts Inc., which own the sprawling 415-hectare plantation in Laguna.

 

http://www.philstar.com/philstar/NEWS200701170709.htm

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