Filinvest earmarks P38B for capex

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Friday, May 30, 2014


FILINVEST Development Corp. (FDC), led by the Gotianun family from Cebu, has budgeted P38 billion in capital expenditures in 2014 across all its businesses.

“With the continuing strength of the Philippine economy and the recent ratings upgrade, we are optimistic that these investments will sustain the growth of FDC,” remarked Josephine Gotianun-Yap, FDC president and chief executive officer, in a press statement.

The company’s bullish stance is supported by its strong performance in 2013. Consolidated gross revenues for the group reached P34.8 billion, a 17 percent increase over the previous year. Net income likewise posted 11 percent growth, registering P6.5 billion for 2013.

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“We are investing for medium term growth,” said Gotianun-Yap.

She noted that FDC’s revenues grew in 2013 by 118 percent, while net earnings grew 134 percent over 2009 levels. While the last two years still registered respectable earnings growth, it was muted by investments undertaken over the last three years.

Going forward, she said that EastWest Bank is expected to see its network become mature and productive as it is already at the apex of its aggressive store expansion program in 2014.

Filinvest Land Inc., on the other hand, will be undertaking a robust program into recurring investment properties over the next few years, while utilities arm FDC Utilities Inc. (FDCUI) is building the 405-megawatt Misamis plant due for completion in 2016.

“These investments will in turn drive earnings growth for the next five years,” Gotianun-Yap said.

Around P25 billion has been allocated to the real estate business that includes listed subsidiary FLI as well as Filinvest Alabang, Inc., the developer of the 244-hectare Filinvest City in Alabang, Muntinlupa.

A more significant portion of the capex will be used for recurring income investment properties, while the balance will be for trading assets with a portion to be used for land-banking.

Almost one-fourth of the group’s capex or P9 billion has been earmarked for the construction of the FDCUI coal-fired power plant in Misamis Oriental. When completed, it will be the largest power plant in Mindanao.

The remainder will be set aside for the hotel, banking and sugar operations. FDC Hotels, Inc., a wholly-owned subsidiary of FDC, recently commenced its 192-key five-
star Crimson Resort and Spa development in Boracay.

In the meantime, EWB is at the height of its expansion that already reached 376 branches and is targeting 400 by yearend.

FDC subsidiary FLI is a major player in the Cebu real estate scene with a range of developments such as the residential communities of One Oasis, Corona del Mar, Aldea del Sol and Grand Cenia Residences.

It is also the developer behind the 50.4-hectare Citta di Mare (City by the Sea) at South Road Properties, which includes resort-inspired Amalfi Oasis and Sanremo Oasis mid-rise residential condominiums and the Il Corso Mall, an emerging premier waterfront lifestyle strip. (PR)

Published in the Sun.Star Cebu newspaper on May 31, 2014.

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