Eton Properties looks to expand leasing business

MANILA, Philippines - The real estate unit of business tycoon Lucio Tan is expanding its leasing business through commercial, office and leisure projects in the next five years.

“The company plans to focus on the development of more commercial centers, retail hubs, business process outsourcing (BPO) offices and hotels – projects that cater to a significantly growing retail, leisure and outsourcing market,” Eton Properties said.

Eton Properties is currently conducting market and design studies for several commercial projects, hotels and BPO offices in key growth centers in Metro Manila.

“For 2013 and the next five years, we are focusing our efforts on growing our leasing business to take advantage of the significant prospects in the leisure, retail and BPO market in the country,” said Eton Properties chief operating officer Danilo Antonio.

Increasing the recurring income portfolio will sustain the company’s growth in the long term, he said.

To date, around 20 percent of Eton Properties’ earnings come from leasing operations, which should ideally pick up to 50 percent in the long term.

“We are very happy with the high occupancy and lease rates in our office buildings given the strong demand from the outsourcing industry,” Antonio said. Eton Properties is the company behind BPO offices Eton Cyberpod Centris and Eton Cyberpod Corinthians.

Due to strong demand, Eton Properties is looking at adjustments in the Eton Centris masterplan to accommodate future demand for office space.

Centris Cyberpod Three in Quezon City, the company’s sixth BPO office building, is scheduled to be completed late this year.

“Given the strong demand for office space, the building is expected to be pre-leased even before turnover,” Antonio said.

For retail offerings, plans are underway for the development of a new lifestyle mall within Eton Centris.

Another commercial strip will open in Eton City, the company’s 1,000-hectare township project in Sta. Rosa, Laguna.

With the government’s thrust on tourism-related projects, Eton Properties said “leisure developments in key cities and tourist destinations are likewise being planned for the next three years.”

“There is significant demand from the leisure and retirees market that we need to address,” Antonio said.

Since starting operations six years ago, Eton Properties has launched a total of 47 projects.

Profits of the property firm, which exited the local bourse early this year, surged to P127.5 million in the first quarter from P19 million last year as revenues almost doubled to P1.16 billion from P560 million.

Eton Properties, a member of conglomerate LT Group Inc., also operates three residential brands: Eton for the high-end segment, Belton for the middle-income market, and First Homes for low-cost housing.