Empire East reports lower income in 2002

Empire East Land Holdings Inc. (EELHI), the low-to-medium cost housing subsidiary of Megaworld Properties & Holdings Inc., reported slightly lower earnings of P105.49 million last year as it blamed higher finance costs and the still difficult real estate environment.

In 2001, EELHI reported a bottom line income of P106.84 million.

Its revenues, however, grew 11 percent to P693.15 million from only P623.26 million a year earlier, owing to the recognition of the prior year’s reservation sales.

Last year, EELHI spent around P902 million for its construction and development activities. The most recent project it completed is the Greenhills Garden Square, a residential building consisting of 778 condominium units located in Quezon City.

Prudent financial measures implemented by the company last year also yielded notable results as its operating expenses decreased by 6.75 percent to P392.57 million, from P421 million a year earlier.

The company, likewise, made partial settlement of its loan obligations amounting to P99 million. It, however, availed itself of a new loan amounting to P150 million, which was used to acquire a piece of land and to partially finance the construction of some projects.

In Southern Luzon, the company has completed providing the amenities for Laguna Bel Air 1 and 2, a township development located in Sta. Rosa, Laguna. It has sold out its third project in the area which is the Laguna Bel Air 3 – a 62-hectare property with 2,327 units that are expected to be completed by 2005.

Empire East is now preparing for the launching of its Laguna Bel Air 4 project, a 25-hectare property located right beside Laguna Bel Air 1 & 2.

The firm is currently marketing The Cambridge Village, which will consist of clusters of residential buildings. Envisioned to become the next urban residential destination in the East, the Cambridge Village will consist of 50 towers with a total of 4,500 condominium units to be completed by 2007 in the Pasig-Cainta area. Land improvement started last year with the clubhouse already completed.

Empire East has chosen to stay focused on the middle-income housing segment by providing various housing options within Metro Manila and nearby growth areas.

It develops and markets affordable housing projects, either condominium communities or house and lot packages. It also offers commercial and office space, mixed-use complexes and sells land and leases out commercial and industrial properties.

The company said it expects favorable prospects this year, especially with the low interest rate environment, affordable prices of properties, and the attractive buyers payment scheme.