Sta. Lucia allots P5B for capital expenditures

STA. LUCIA Land, Inc. (SLI) is allocating more than P5 billion in capital expenditures this year, while gunning for a 15% increase in sales with the launch of more residential and commercial projects.
“This year our target is P5 billion, maybe even more. That’s not just for land acquisition, it also includes the development,” SLI President and Chief Executive Officer Exequiel D. Robles told reporters during a media roundtable in Quezon City last Friday.
The listed property developer has been bullish in its expansion plans, chalking up more than 2,000 hectares of land which it aims to develop in the next three to four years. SLI’s land bank is located across Pangasinan, Dagupan City, Bulacan, Pasig City, Cavite, Laguna, Batangas, Rizal, Iloilo, Silay City, Puerto Pricensa in Palawan, Cebu, and Davao.
SLI will be launching at least 10 projects this year, with a sales value of around P15 billion to P25 billion.
Mr. Robles said they will continue to focus on their core business of land development, selling lots only in residential subdivisions. Other than lots, SLI also offers house-and-lots, and condominiums.
The company is planning to launch condominium projects in Davao, Iloilo, Baguio, Quezon City, and Puerto Princesa this year. The Palawan project is set to have a resort component.
For commercial developments, SLI is currently constructing a mall in front of the Francisco Bangoy International Airport in Davao. It is also pursuing plans for a mall in Iloilo.
The company will further be entering into joint venture agreements with various partners, allocating around 1,000 hectares of land for partnerships.
The SLI chief said they would like to take advantage of the booming demand for residential properties, especially from overseas Filipino workers and employees from the business process outsourcing sector.
“Makikita mo ngayon mas bullish halos dahil ang daming developer na lumabas. Ang daming dating developer na nag-eexpand din. Pagkatapos ang market nandyan pa rin ang mga market natin mga OFWs pati yung mga call center agents (You can see now it’s more bullish because there are more developers. Many established developers are also expanding. The market is still there, with OFWs and call center agents),” Mr. Robles said.
Mr. Robles added that their push towards the provinces instead of Metro Manila will help them avoid the tighter competition in the metro.
The company is likewise banking on its roster of marketing firms to help achieve its 15% sales growth target for the year.
SLI units include Santa Lucia Ventures, Sta. Lucia Global, Royale Homes, Orchard Property Marketing Corp., Mega East, Fil-Estate Group, One Premiere Land, and Asia Pacific, all of which are in charge of selling and marketing SLI properties.
“The success of our marketing units is also a function of other factors such as the location and quality of our projects,” SLI Chairman Vicente R. Santos said in a statement.
SLI booked a net income attributable to the parent of P700 million in the first nine months of 2017, 31% higher year on year, following an 18% uptick in revenues to P2.795 billion for the period. — Arra B. Francia