Ovialand revenues up 90%

PROPERTY developer Ovialand, Inc. posted a 90% revenue growth from the sale of 433 house-and-lot units across its development projects.

In an interview with BusinessWorld on Wednesday, the company said it generated an unaudited P873 million last year from P462 million in 2020. Ovialand said the majority of its sales were taken out by financing institutions such as the Home Development Mutual Fund or Pag-IBIG Fund.

The company said the sales were derived from its four developments, namely: Phase 1 and 2 of its Sannera project, Savana, and Caliya project in Candelaria, Quezon. Ovialand increased prices by 3-8% last year.

“It’s a result of increasing [prices of] raw materials but we also want to retain our value for money. So even if there’s a slight increase in our price, we’re still aiming to give our clients the best ‘value for money’ house-and-lot that they can buy at that price point,” Ovialand President Marie Leonore Fatima Olivares-Vital said.

In a statement on Wednesday, Ovialand said it is looking to complete 600 houses in Southern Luzon “and begin expanding in areas where it is poised to grow its market share.”

Ovialand is working on its 10-hectare Santevi project in San Pablo, Laguna. The company previously said it would invest P850 million in the development, which is a house-and-lot project done in collaboration with Japan’s Kyushu Yaesu Co. Ltd.

The company is also eyeing to launch three new projects by 2023.

Ovialand is planning to raise capital with a P1.5-billion initial public offering (IPO) this year, proceeds of which will be used for its current projects but 50-60% or “a big chunk of it will be used for land banking for the next five years.”

It aims to purchase 50 hectares this year and next, with a goal of expanding its current 43-hectare land bank to 200 hectares in the next five years. The company is hoping to build 3,000 house-and-lot units across the country yearly by 2025.

“We’re trying to do a very disciplined approach with the growth and attacking it in a per region level so that management will be able to execute it efficiently and effectively rather than spreading the organization to so many places at once,” Ms. Olivares-Vital said.

Ovialand has tapped China Bank Capital Corp. to be the underwriter for its P1.5-billion IPO. — Keren Concepcion G. Valmonte