D.M. Wenceslao & Associates, Inc. (DMW) struck a deal for the establishment of a Nissan car dealership inside its mixed-use estate in the Bay Area.
In a statement issued Monday, the listed property and construction firm said the deal will be undertaken by its 50%-owned firm Bay Resources and Development Corp. (BRADCO).
The Nissan dealership will occupy a 2,500-square meter lot along BRADCO Avenue in Aseana City that will be leased out over a 10-year period, with an option to extend for another five years. The project is set to be completed by 2021.
“We carry out an interim land use strategy with respect to certain land areas not slated for development in the next five to 10 years,” DMW Chief Executive Officer Delfin Angelo C. Wenceslao said in a statement.
“We intend to make such land available for lease for a variety of purposes. We believe such a strategy will help increase the brand awareness of Aseana City, and also add another income source to our group.”
Nissan will be the fourth auto brand to have its own dealership in Aseana City, following Ford, Honda, and Subaru.
Aseana City covers a total of 107.5 hectares, comprising about 73% of the company’s total landbank. The area houses a mix of residential, office, retail and government offices, among other locators.
The company previously said that it will continue selling land in Aseana City this year, with about 2,000-2,500 sq.m. programmed for sale.
DMW is spending P4 billion in capital expenditures this year, as it looks to take advantage of the strong demand for residential projects in Aseana City. This is part of the company’s plan to spend about P3-5 billion annually in the next five years, for a total of P21 billion until 2023.
The company’s net income attributable to the parent rose 17% to P1.22 billion in the first half of 2019, after gross revenues also picked up 17% to P1.30 billion.
Shares in DMW dropped 1.01% or 10 centavos to close at P9.80 each at the stock exchange on Monday. — Arra B. Francia