Filinvest sets P12-billion capex for this year

MANILA, Philippines - Filinvest Development Corp. (FDC), the holding firm for the various business interests of the Gotianun family, has set a P12-billion capital expenditure program this year, the bulk of which will be channeled to its real estate development and banking units.

At the sidelines of the company’s stockholders’ meeting yesterday, FDC president and CEO Josephine Gotianun-Yap said 60 percent of the programmed capital budget will be used to fund the real estate development projects of unit Filinvest Land Inc. (FLI) while 30 percent will be used to expand the branch network of East West Banking Corp. and fund the acquisition of AIG-Philam Savings Bank. 

East West Bank is eyeing to end the year with a total of 100 branches from the existing 80.

Another 10 percent or P800 million will be funneled into the sugar manufacturing business. Its two mills, Davao Sugar Central Co. Inc. and Cotabato Sugar Central Co. Inc. are currently undergoing modernization. Slated for completion this year, the two plants will have a combined raw mill capacity of 13,500 metric tons per day from only 9,000 MT last year. Refining capacity is expected to hit 17,500 bags per day from the current 6,000 per day.

FLI has allotted P5.3 billion for its capex this year which include the development of five to six mid-rise buildings, two BPO buildings, the first phase of the P25 billion township on a reclaimed land in Cebu City, and its first high-rise residential project called The Linear.

FLI is rolling out 29 new projects and phases this year, estimated to generate around P7.4 billion in sales.

In addition, FLI plans to launch more phases in its ongoing mid-rise projects in Ortigas Extension and Marcos Highway in Pasig City, as well as in Davao and Cebu. It will also launch a similar project in Sta. Mesa, Manila.

For its socialized housing projects, the company is readying new projects within Ciudad de Calamba in Laguna as well as new phases in existing projects in Batangas, Cavite, Tarlac, and Pampanga.

Aside from AIG-Philam Savings Bank, East West Bank also acquired Philam Auto Finance & Leasing Inc. and PFL Holdings Inc.

With the acquisition, East West Bank is expected to become the sixth largest credit card issuer in the country in terms of cards-in-force and card receivables.

The merger,once completed, will shore up East West Bank’s asset base to P63 billion from only P49.92 billion in 2008.

“Your company believes that it is well-equipped to keep afloat and grow amid the uncertainties faced by many companies in a slowing economy. The Filinvest Group has advanced and grown over the past 54 years by drawing on its accumulated strengths of robust financials, an excellent credit record, a seasoned management team that is tested by adversity, and a product and market diversification strategy that has made your company less susceptible to cyclical swings in its markets,” Gotianun-Yap said.