THE property unit of GT Capital Holdings, Inc. will be launching five more residential projects in the second half of 2018, after posting lower reservation sales in the first half due to fewer units left in its inventory.
Federal Land, Inc. had targeted to unveil nine to 11 projects this year, three of which have already been launched from the January to June period. This includes the Florida Sun Estates-Orlando in General Trias, Cavite, Mimosa Tower of Peninsula Garden Midtown Homes in Paco, Manila, and Baler Tower of Palm Beach West in Metro Park, Bay Area.
The property developer then launched the first tower of Quantum Residences along Taft Avenue in Pasay City earlier this month.
“We have five more projects in the second half. There’s Grand Hyatt 2 because Grand Hyatt 1 was fully sold out, two or three towers in the Bay Area. Aside from Grand Hyatt, another tower in Bonifacio, and another tower in Taft,” GT Capital President Carmelo Maria Luza Bautista told reporters after a media and analysts’ briefing in Taguig City on Aug. 15.
Federal Land has already sold out the 239 units in the first tower of the Grand Hyatt Manila Residences in Bonifacio Global City (BGC) in Taguig. The company will also launch the second tower of the Quantum Residences in Pasay, which will cater to students of schools such as De La Salle University, St. Scholastica’s College, and Arellano University located within the area.
The launch of more projects will support the company’s growth this year. In a presentation, Mr. Bautista noted that Federal Land’s inventory slipped by 17% to 1,364 units in the first half, following delays in securing permits and licenses for new projects. Reservation sales accordingly fell by six percent to P6.4 billion.
Federal Land’s net income also dropped by 35% to P503.6 million in the first semester, versus the P777.8 billion it generated in the same period a year ago, as revenues stood flat at P5.3 billion.
The company currently holds a land bank of 82.70 hectares across the country, located across Metro Manila and provinces such as Iloilo, Laguna, and Cavite. Its residential units for sale range from 18 to 400 square meters (sq.m.), priced from P20 to P101 million.
Aside from residential projects, the company said it will also redesign the podium for The Big Apple Mall at Grand Central Park in BGC, to accommodate the business district’s high-density residential communities. The redesign will bring 20,000 sq.m. of additional gross floor area to the company.
Federal Land is one of the property companies of tycoon George S.K. Ty, with the other being Property Company of Friends, Inc. (Pro-friends), which caters to the low-cost property sector. Pro-friends has so far developed 2,886 housing units, with a land bank of more than 1,700 hectares mostly in Cavite.
The two firms delivered consolidated revenues of P9.7 billion in the first half of 2018, 8.9% higher year on year, while net income attributable to the parent went down by 24.5% to P1.1 billion. — Arra B. Francia