Filinvest Land Inc. (FLI), the property development arm of the Gotianun Group, said it is allotting some P16 billion for capital expenditures this year, which the company will channel to its core businesses of residential, office, and retail.
FLI President and CEO L. Josephine Gotianun-Yap said it will spend some P6.4 billion for residential developments, P5.8 billion for office developments and P3.8 billion for retail, logistics, innovation parks and land acquisition.
This year’s capex is almost the same as last year’s spending of P16 billion, which was just about half of what the company allocated for 2020.
“In 2021, we are moving forward and embarking on new initiatives such as logistics and e-commerce warehouses and co-living spaces. These initiatives address new trends that will define our future and will widen the base of our investment properties for recurring income,” said Gotianun-Yap.
“We are also planning our entry into the REIT [real estate investment trust] market, a new financial platform to monetize investment assets as they mature and provide funding to fuel future growth.”
Filinvest Land is gearing up for its maiden REIT offering later this year. The REIT offering is expected to carry a portfolio of over 300,000 square meters of gross leasable area from modern office developments most of which are in Northgate Cyberzone at Filinvest City, a 244-hectare development which has attained LEEDv4 Gold Certification for Neighborhood Development in Southeast Asia.
Projected proceeds to be received by FLI from the REIT offering will be used to fund the completion of its ongoing projects as well as planned office projects.
Part of the proceeds are also intended to fund the development of FLI’s logistics and innovation parks to address the needs of logistics, light manufacturing, storage and e-commerce companies.
For its residential business, Filinvest Land said it will retain its stronghold on the affordable segment through its Futura brand and the mid-income segment through its lifestyle Aspire brand.
Filinvest Land has a P30-billion pipeline of residential projects and is looking to expand to new areas across the country, including Bataan, Naga, Dagupan and General Santos.
“We have kept our focus. We continue to build the dreams of the affordable and middle-income families. Our product designs and project locations cater to the end user, mostly first time homebuyers who remain to be our major customers. We believe that this is a more stable market, a market which is less prone to speculation and volatility,” FLI Residential Business Head Tristan Las Marias said.
Source: Business Mirror
