ITALPINAS Development Corp. (IDC) plans to spend P2-3 billion for the expansion of two projects next year, driven by the demand for more housing units in the areas where it is present.
IDC Chairman and Chief Executive Officer Romolo V. Nati said the company will be launching the expansion of Primavera City in Cagayan de Oro, Misamis Oriental, and Miramonti in Sto. Tomas, Batangas.
Mr. Nati said the second phase of Miramonti will be similar in architecture to the first phase, which houses a total of 362 residential units and 12 commercial spaces. It will also have a bigger commercial podium compared with the first phase.
“We are surrounded by industrial parks with more than 100,000 employees, and the Batangas Port is growing fast, occupancy of hotels is very high in the area so we will develop this project so we can take advantage of this market condition,” Mr. Nati told reporters after the company’s annual shareholders’ meeting at the Manila Polo Club in Makati City.
IDC said it has already sold about P400 million worth of units in Miramonti, or 45% of the project. The entire Miramonti development will house 1,100 units across three towers standing on a 55,000-square meter (sq.m.) property.
For Primavera City, IDC will launch two more residential towers, which will also have office spaces. The mixed-use project will have a total of seven towers to be developed in four phases, and will offer 1,400 units once completed.
IDC has sold 82% of the first phase of Primavera City worth around P672 million.
Mr. Nati said the projects will be partially financed through the P500 million it will raise from the issuance of preferred shares. The company’s board of directors approved earlier this year the conversion of up to 100 million unissued common shares into preferred shares. He added that they will be working with banks for the rest of the funding.
“We are focusing on our fund-raising activity so we can acquire more land and develop more projects,” Mr. Nati said.
The IDC executive declined to specify target locations for future projects, but noted that the company wants to take advantage of the growth in emerging cities.
Asked about the company’s performance this year, Mr. Nati said sales so far have been “beyond expectations.”
IDC’s net income attributable to the parent went up 22% to P23.7 million in the first six months of 2018, as gross revenues doubled to P165.8 million in the same period.
Shares in IDC dropped 4.3% or 22 centavos to P4.90 each at the stock exchange on Wednesday. — Arra B. Francia