FILINVEST Development Corp. (FDC) has programmed P38.9 billion for its spending plan this year as it accelerates its expansion in Clark, Pampanga.
In a statement issued over the weekend, the Gotianun-led conglomerate said bulk of its 2019 capital expenditure (capex) will be used for Clark projects such as the Clark International Airport, Filinvest Mimosa+ Leisure City, and the first phase of its logistics park in New Clark City.
“Capital expenditure in 2019 is roughly equally allocated between the trading segment of the real estate business and the investment segment, which includes office, retail, hotel, and logistics park developments,” FDC President Josephine G. Yap said was quoted as saying in a statement.
Filinvest Land, Inc. will get bulk of the spending as it starts the construction of Phase 1 of New Clark City spanning 64 hectares. The listed property developer has scheduled to break ground for the logistics, industrial park, and mixed-use project this May, with target completion by 2020.
The company expects locators to start setting up their facilities in the area by early 2020.
For Filinvest Mimosa+, FLI has lined up two office buildings, a lifestyle mall, four residential towers, a retail strip, and a high-end residential project for this year.
FDC’s investments in Clark also include the Clark International Airport, as it is part of the consortium that will handle its operations and maintenance alongside JG Summit Holdings, Inc., Philippine Airport Ground Support Solutions, and Changi Airport Philippines Pte. Ltd.
The planned spending will further support FDC’s target of having 5,000 keys under its hospitality business by 2023. The listed firm has 10 new hotels and expansions in the pipeline, equivalent to about 2,600 additional keys.
FDC currently operates six hotels with around 1,800 keys under the brands Crimson — located in Mactan, Alabang, and Boracay — and Quest Hotel, with locations in Cebu, Clark, and Tagaytay. The company also has two golf courses under its hospitality arm.
Aside from its property and hospitality projects, FDC also has interests in power, banking, and sugar.
Its main asset for the power business is a 405-megawatt clean coal power plant in Misamis Oriental. It has also partnered with French utility firm Engie for three solar rooftop projects that will provide 5 MW.
The banking business through East West Banking Corp. is focusing on consumer loans, with its consumer portfolio rising by 16% in the previous year.
Meanwhile, the company said it milled 900,000 metric tons of cane in 2018, resulting to P2.5 billion in revenues.
FDC booked a net income attributable to the parent of P9.8 billion in 2018, 48% higher year on year. Consolidated revenues also went up by eight percent to P73.3 billion. — Arra B. Francia