Highlands Prime incurs P27.9-million loss in first half

MANILA, Philippines - Highlands Prime Inc. (HPI), the high-end leisure property development firm of the family of retail tycoon Henry Sy, incurred a net loss of P27.9 million in the first half of the year, a reversal of the P32.93 million profit reported in the same period in 2010.

Revenues from real estate sales fell 55.12 percent to P157.98 million while other income, consisting of interest income and lease income, rose to P16.84 million from P13.13 million.

Total operating expenses inched up three percent to P80.5 million, largely due to repairs and maintenance. Interest expenses amounted to P45.3 million, up from P41 million due to lower capitalized interest this year as a result of lesser construction expenditures.

As of end-June this year, HPI’s asset base stood at P4.95 billion, down from P5.02 billion as of Dec. 31, 2010 mainly due to the collection of accounts receivable.

Total liabilities amounted to P2.21 billion, lower than the end-December 2010 level of P2.26 billion. This was due to partial payment of the loan and the reduction on the deferred tax liabilities.

Last year, HPI posted a net income of P8.22 million, a decline of 65.75 percent from the 2010 level.

HPI has three projects under construction, namely; The Woodridge Place 2, Pueblo Real Phase 1 and Sierra Lago.

Woodridge Place Phase 2, a condominium project at Tagaytay Highlands which boast of a view of Taal Lake, was formally introduced to the market in May 2010. This project consists of two mid-rise buildings with more than 80 condominium residential units available for sale. Construction of the first tower is well underway while the other is still ongoing.

Pueblo Real 1, the company’s first subdivision development in Tagaytay Midlands, is nearing completion and most of the lots are now turned over to the lot owners. It is currently 98 percent completed.

Sierra Lago, a subdivision development launched in November 2010, is located at Tagaytay Midlands like Pueblo Real 1. Its architectural theme is modern Mediterranean and has Mt. Makiling and the Highlands mountain range as backdrops and the fairways of the Midlands golf course. This has 185 lots of approximately 200-300 square meter cuts.