AboitizLand hikes capex to P5.4B

MANILA, Philippines - The property development arm of Aboitiz Equity Ventures Inc. (AEV) is increasing its capital spending this year as it takes advantage of robust growth in both residential development and  industrial projects.

In a statement, Aboitiz Land Inc. said it allotted a capital expenditure budget of P5.4 billion in 2014, up 35 percent from P4 billion a year ago as it sets its sights on expanding nationwide.

 “We remain bullish on the property sector and want to enter the market nationally,” said AboitizLand president and CEO Andoni Aboitiz.

More than half of the capital spending is allocated for residential development, while the rest will go to industrial and commercial projects.

“Apart from the existing landbank in Cebu, (the company) is now looking at gaining a foothold in Mindanao through residential and industrial developments in Davao City,” AboitizLand said.

For Luzon, after its initial entry through the acquisition of Lima Techonology Center in Batangas, AboitizLand said it is now looking at venturing into residential and commercial developments in Mega Manila in the medium term.

“Our vision is not just to build, but to establish thriving communities where we are located,” Aboitiz said.

Infrastructure development is also increasingly becoming part of its portfolio as it looks at more Public-Private Partnership (PPP) projects, particularly more airport and tollroad projects, Aboitiz said.

AboitizLand and Ayala Corp., through joint venture unit Team Orion, topped the recent bidding for the P35.4-billion Cavite-Laguna Expressway. Team Orion submitted a concession payment of P11.659 billion for the PPP project and is currently awaiting the notice of award from the Department of Public Works and Highways.

AboitizLand currently has eight ongoing residential projects in Cebu, comprised of both vertical and horizontal developments and has recently opened Phase 2 of its Pristina North Residences in its integrated community Pristina North.

Through a joint venture with Ayala Land Inc., it is also developing a new business district on a 15-hectare lot in Mandaue City that will be launched in 2015.

It recently expanded the Lima Technology Center to 486 hectares in Batangas, through the acquisition of another 153 hectares to take advantage of the growing demand for more industrial space in Luzon, the company said.

In the first quarter, this year, earnings of AboitizLand nearly tripled to P121.1 million from P43.1 million mainly due to the consolidation of Lima Land Inc. AboitizLand is a subsidiary of listed conglomerate AEV, which has interests in power, banking and food.