SEC approves RLC-DMCI Homes joint venture

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ROBINSONS Land Corp. (RLC) is teaming up with DMCI Project Developers, Inc. (DMCI Homes) for the development of a multi-tower residential condominium in Las Piñas City.

In a disclosure to the stock exchange on Monday, the Gokongwei-led property firm said it has secured approval from the Securities and Exchange Commission (SEC) for the incorporation of their joint venture (JV) firm — RLC DMCI Property Ventures, Inc.

RLC’s board of directors had initially approved the project in October 2018.

“RLC DMCI Property Ventures, Inc. shall purchase, lease and develop real estate properties situated in Las Piñas City. The proposed project is intended to be a multi-tower residential condominium and may include commercial spaces,” the listed company said.

RLC and DMCI Homes have agreed to pour in P500 million each for the JV firm’s initial capitalization, for a total of P1 billion.

Each party will nominate three officials to form the JV firm’s board of directors. Profits will be equally split between the two companies.

DMCI Homes is the property unit of DMCI Holdings, Inc., which has primarily been developing residential condominium units for the mid-income market in Metro Manila. Its projects include The Celandine and Infina Towers in Quezon City, Fairland Residences in Pasig, and Fairway Terraces in Pasay City.

The Consunji-led developer has allocated P17.9 billion in capital expenditures this year, as it plans to launch 10 projects.

DMCI Homes booked a net income of P3.9 billion in 2018, nine percent higher year on year, due to a one-time gain from the sale of land in Quezon City. Excluding this, core profit dropped by 11% due to higher costs of raw materials and changes in accounting standards.

Meanwhile, aside from residential condominiums, RLC is also a developer of shopping malls, offices, and hotels. It ended 2018 with a total of 51 malls, making it the largest contributor to revenues at P11.94 billion. The residential segment followed, after booking P8.69 billion, 33% higher year on year.

RLC’s residential unit consists of high-rise condominiums within Metro Manila and horizontal properties in the provinces. Its condominiums include The Magnolia Residences in Quezon City and Signa Designer Residences in Makati.

Meanwhile, its subdivisions include Bloomfields Heights Lipa in Batangas, Bloomfields General Santos, and Hanalei Heights in Laoag, among others.

Overall, the listed Gokongwei firm said its net income increased by 40% to P8.23 billion in 2018, following a 31% jump in consolidated revenues to P29.44 billion.

Shares in RLC slipped 0.41% or 10 centavos to close at P24.15 each at the stock exchange on Monday. — Arra B. Francia