Corporate News

By Krista A. M. Montealegre,
National Correspondent

Filinvest ramps up spending to P40B this year

Posted on May 01, 2017

FILINVEST Development Corp. (FDC) is deepening its presence in the property and infrastructure sectors as the holding firm of the Gotianun family ramps up spending to P40 billion this year.

Filinvest Development Corp.’s earnings rose by 21% to P8.5 billion in 2016. -- FILINVEST
FDC President and CEO Lourdes Josephine Gotianun-Yap told reporters last week the property group is set to open the Crimson Hotel in Boracay, which will add approximately 200 rooms to its existing portfolio of 1,365 keys.

Hotel projects are lined up in Puerto Princesa and Tagaytay, among others, in line with a plan to increase the count to 5,000 by 2020, as FDC gears up for the launch of its own brand catering to the millennial market, Ms. Yap said.

After building the largest power plant in Mindanao, FDC is setting its sight on the Luzon market for expansion, with a greenfield project utilizing hydroelectric power.

“We hope (to finalize something this year),” Ms. Yap said.

FDC completed a 405-megawatt coal-fired power plant in Misamis Oriental last year. The facility utilizes the circulating fluidized bed (CFB) boiler technology, the latest in clean coal technology.

FDC continues to show interest in the five regional airports in Davao, Laguindingan, Panglao, Bacolod and Iloilo commutatively worth some P108.18 billion that will be separately auctioned off by the government.

Asked if the company will retain Japan Airport Terminal Corp. and Sojitz Corp. as its partners for the regional airport projects, Ms. Yap said: “They are now studying it.”

Filinvest Group is keen on participating with government’s push to accelerate infrastructure development. The group partnered with Gokongwei-owned JG Summit Holdings, Inc. for an unsolicited proposal to expand Clark International Airport for P186.64 billion.

The conglomerate is setting aside P40 billion for capital expenditures and investment this year, higher than the P25 billion spent in 2016.

Of the total, P20 billion will be allotted for real estate development, P12 billion will be allocated the requirements of banking unit East West Banking Corp. and P8 billion will be infused to its subsidiaries.

“While some investors tend to focus on market volatility, we at FDC stand firm in our belief in the country’s potential. Despite the market noise, the Philippines continues to deliver,” Ms. Yap said, referring to the country’s stellar economic growth of 6.8% last year.

Earnings of FDC rose by an 21% to P8.5 billion from P7 billion, supported by a 19% uptick in revenues to P58.6 billion from P49.3 billion.

Net profit has nearly doubled and sales have increased by half over the last five years, driven by its property and banking businesses.