Robinsons Land hikes capex budget to P13B

MANILA, Philippines - Robinsons Land Corp. (RLC), the property development arm of the Gokongwei Group, has increased its programmed capital spending to P13 billion this year to take advantage of the sustained property boom.

“The company has budgeted P13 billion in capital expenditures covering land and constructions for fiscal year 2013,” RLC said.

Of the capital allotment, two-thirds will be spent for the development of malls, office buildings and hotels while the remaining 33 percent will be taken up by residential condominium and housing projects.

RLC’s capital spending dropped to P9.5 billion in its fiscal year 2012 from P13.9 billion in 2011 but was higher than the P6.5 billion in 2010, representing about 71 percent, 108 percent and 60 percent of revenues in those years, respectively, the company said.

“These will be funded through cash from operations and borrowing,” the property firm said.

In its 2012 fiscal year that ended last September, RLC posted another profitable performance as its net income rose seven percent to P4.2 billion from the year-ago level.

Gross revenues gained six percent to P13.52 billion from P12.81 billion, driven by double-digit growth in revenues from its shopping malls and hotels.

Revenues contributed by the Commercial Centers Division jumped 12 percent to P6.43 billion from P5.76 billion a year ago.

“Significant rental increment was contributed by the new malls opened in fiscal year 2012. Also, our flagship malls Robinsons Galleria and Robinsons Place Manila and almost all provincial malls posted decent growth in rental revenues,” RLC said.

Revenues of the Hotels Division climbed 15 percent to P1.38 billion from P1.21 billion due to higher occupancy rate of Crowne Plaza and Holiday Inn, increased hotel revenues from Summit Circle and the additional four new Go Hotels that opened last year.

The Office Buildings Division grew its lease income five percent to P1.4 billion “due mainly to new office space available for lease in Robinsons Cybergate Tower 3 and completion of Cybergate Plaza,” the company said.

However, the Residential Division’s revenues fell five percent to P4.3 billion “due to lower project completion of various ongoing projects,” RLC said.

The company has built 32 malls, 33 residential projects and eight office buildings to date.

Apart from its core property businesses, RLC is entering the gaming business. Late last year, the JG Summit Holdings unit sealed a deal with Japanese gaming tycoon Kazuo Okada to jointly develop a $2-billion hotel and casino complex in the 100-hectare Entertainment City along Roxas Blvd.

Okada’s Tiger Resorts & Leisure Corp. is one of four groups that were granted a license by the Philippine Amusement and Gaming Corp. to operate a casino on a reclaimed land along Manila Bay, which the government expects to turn into the world’s number two gaming destination, ahead of Singapore and Las Vegas and behind only Macau.