Rockwell invests P30 B on 2 projects

MANILA, Philippines - Upscale property developer Rockwell Land Corp. is allocating nearly P30 billion for two multi-tower residential developments, one in Makati and another in Cebu.

For this year alone, Rockwell Land will spend P12 billion for property developments that will allow its profits to hit as much as P1.5 billion, its top executive said.

“We continue to look for signature projects. We like Metro Manila obviously but Cebu is very much in our radar screen,” Rockwell Land president Nestor Padilla said in a briefing.

Specifically, he said the property firm allotted P26 billion for five towers of the Proscenium in Makati and P3 billion to develop a 3.1-hectare lot in Cebu.

Padilla said the 3.6-hectare Proscenium will allow Rockwell Land to generate development income for the next eight years. Proscenium is designed by “starchitect” Carlos Ott, the man behind the L’Opera de la Bastille in Paris.

To date, Rockwell Land has sold all available penthouse units of the Kirov, Sakura and Lincoln towers worth P60-90 million. Sales takeup from the Proscenium hit P2.5 billion as of end-2012.

“Metro Manila will continue to be the market that we will focus on,” Padilla said, but added that Rockwell Land is also pursuing its first foray in Cebu.

Revenue contribution from the property in Lahug, Cebu is estimated at P4.6 billion for the next four years, Padilla said.

Amid continuous robust demand in the high-end property sector, Rockwell Land expects another banner year for 2013.

“For 2013, (net income) is anything between P1.4-1.5 billion,” Padilla said. Last year, the listed developer’s earnings jumped 23 percent to a record P1.1 billion, up from P914.9 million in 2011.

“For this year, we are spending about P12 billion for capital expenditures,” Padilla added.

This will support the construction of the 53 Benitez, a two-tower, mid-rise residential development designed as home for startup families in Quezon City. In April, Rockwell Land’s Primaries brand launched 53 Benitez, which is expected to generate P2.2 billion in total revenues from the sale of its 364 units.

Padilla said the company has ample cash and debt facility for its capital spending but Rockwell Land would conduct a follow-on offering if it acquires a significant project.

“If we will sustain the 20 percent annual compounded growth, we need to acquire more lots,” Padilla said, adding that the current landbank is good for at least three years.

Rockwell Land is also beefing up its recurring income portfolio.

For instance, it will double its leasable office space to 100,000 square meters (sqm) from the current 44,000 sqm given high demand from outsourcing firms.

Padilla said the Edades tower in Rockwell will also start offering 114 serviced apartments late this year.

Rockwell Land was created in 1995 after the shutdown of the thermal power plant of the Lopez Group in Makati. The former power plant complex is now a self-contained, mixed-use community with residential towers, office buildings, a shopping mall, and a graduate school.