MANILA, Philippines – Filinvest Land Inc. (FLI), the real estate arm of the Gotianun family, is ramping up its spending this year by a fifth as it continues to bolster its recurring income portfolio.

FLI president and chief executive officer Josephine Gotianun-Yap said the company is hiking its capital expenditures this year to P24 billion from P20 billion last year on the back of a robust Philippine property sector.

The property firm plans to boost its recurring portfolio from the existing 343,000 sqm of total gross leasable area (GLA) to 495,000 sqm by yearend. Its bigger plan is to triple its GLA and reach 966,000 sqm by 2019.

With higher spending this year, Gotianun-Yap said the property firm may return to the bond market for financing.

FLI last year raised P7 billion from the issuance of bonds due 2021 and 2024.

Gotianun-Yap said FLI may go to the debt market by the latter part of the year to raise capital mostly for its recurring income projects but declined to give a range of the amount.

For this year, FLI said it would invest in recurring income projects, in a wider geographic area as well as develop mixed-use properties.

Gotianun-Yap said the company intends to fully realize its investments in offices and malls in the past few years.

FLI’s BPO offices together with the malls contribute approximately 30 percent to the property firm’s net income

“We’re still targeting in that range of 30 to 40 by next year,” she said.

FLI plans to launch within the year a high-end residential development in a 20-hectare property in Daang Hari along the Alabang-Cavite territory.

Gotianun-Yap said the firm would invest P2 billion to P2.5 billion for the Daang Hari development which would offer lots with an average size of 350 sqm.

fli is part of the Filinvest Development Corp., the investment arm of the Filinvest Group, which is also into power generation through fdc utilities Inc., banking through EastWest Bank, and sugar production through Pacific Sugar Holdings.

Source: PhilStar