Global-Estate sets P3-B capex this yr

MANILA, Philippines - Global-Estate Resorts Inc. (GERI), the tourism and leisure unit of Andrew Tan’s Alliance Global Group Inc. (AGI), has allotted more than P3 billion this year for new offerings and the development of Twin Lakes in Tagaytay and Boracay Newcoast, allowing the company to boost its reservation sales to a record P8 billion.

“GERI’s projected capital expenditure for 2013 is P3.5 billion primarily  earmarked for continuous development of components within its flagship projects,” the company said.

“This would be funded via internally generated funds borne from an earlier increase in authorized capital of the company,” it added.

In June, Tan’s flagship property unit Megaworld Corp. subscribed to 2.5 billion new GERI shares worth P5.65 billion. Last week, GERI announced it is doubling its authorized capital stock to P20 billion.

GERI president Ferdinand Santos said the company is on track to posting 20 percent growth in profits this year compared with P265.05 million in 2012.

“The 20 percent growth is sustainable over the medium term, as we pursue our long-term objective of becoming the leader in the development of masterplanned integrated tourism estates,” he said.

In the first half, GERI posted P5.6 billion in reservation sales, already 70 percent of its full-year target.

The growth was driven by new offerings and sale of existing inventory. For this year, GERI has launched Oceanway Residences 1 & 2, a cluster of seven modern residential condominiums, and Boracay Savoy Hotel, both located in the 150-hectare Boracay Newcoast mixed-use leisure and resort development.

Oceanway Residences is the first condominium cluster that offers views of the Sibuyan Sea, Fairways & Bluewater Golf Course and Boracay’s highest peak, Mt. Luho.

“Within Fairways and Bluewater complex, the number of hotel rooms has substantially increased from 192 to 333, which contributed to GERI’s improvement in recurring income from hotel operations,” the company said.

GERI also partnered with tour operators in China and Taiwan to increase its hotel occupancy.

The listed firm allotted P20 billion for two major tourism-oriented communities: Boracay Newcoast and Twin Lakes in Tagaytay.

Through the boutique hotel district at the Boracay Newcoast, GERI targets to reach 3,500 hotel rooms in the long term, said GERI assistant vice-president Alain Sebastian.