Robinsons Land sets P4-B capex for new projects

Robinsons Land Corp. (RLC), the property arm of the Gokongwei Group’s JG Summit Holdings Inc., is embarking on a P4-billion capital spending program this year for the development of new shopping malls and office buildings, and the refurbishment of its hotels.

RLC executive vice-president Frederick Go said bulk of the programmed budget (approximately P2 billion) will go to the construction of three new shopping malls: Angeles, Pampanga; Bacolod; and Shaw Blvd. in Mandaluyong.

The mall in Bacolod is set to open in May while the Metro Gateway Mall in Mandaluyong is due for opening in August.

Another P1.3 billion has been earmarked for the construction of high-rise buildings. Under construction are residential condominium buildings Gateway Residences, Adriatico Residences and Fifth Avenue Place, a 38-storey residential building in Fort Bonifacio Global City.

RLC is also spending P300 million for the development of new housing units, mainly in the middle-income category. The remaining P400 million will be used for the improvement of its hotels. It has two first class hotels, a deluxe hotel, and a service apartment complex, the Robinsons Apartelle.

Company officials said they are confident RLC will perform better than last year with its buildings division driving the growth. The buildings division rose 200 percent last year, buoyed by the strong growth in middle-income projects.

RLC intends to focus on the development of affordable residential condominiums with a price range of P1.8 million to P3.5 million for the middle-income market.

As for its hotel division, RLC intends to maintain its higher-than-industry hotel occupancy rates by strengthening its marketing organization to focus on corporate and leisure travelers, as well as to bolster the domestic market with its airline affiliate, Cebu Pacific Air.

The firm’s shopping malls are generally anchored by sister companies Big R Supercenter, Robinsons Department Store, Robinsons Supermarket and the Handyman chain. They enjoy high occupancy rates, currently averaging at 94 percent.

RLC’s objective is to further strengthen its position as the most solid and reputable real estate developer in the country.

It intends to steadily expand its shopping mall business by building three to four new shopping malls a year. It also plans to develop leaner commercial centers in provincial cities with a smaller average gross floor area of 25,000 square meters each.