DMCI allots P60 B for 12 new housing projects

MANILA, Philippines - DMCI Homes, the housing subsidiary of the Consunji Group’s DMCI Holdings Inc., is pouring P60 billion into 12 housing projects next year as part of an ongoing expansion program.

Ramil Lombos, senior vice-president for finance and operations at DMCI Homes, said the 12 projects would translate to 15,000 residential units.

Lombos said the company is looking to launch its first provincial project in the first quarter of next year.  The project will be located in Davao.

Mid-rise projects would also rise in Baguio and Davao, he said.

Lombos said the property developer has sought the Securities and Exchange Commission’s approval to issue up to P1 billion in home starter bonds.

“We’ve filed our application and we’re waiting for feedback. Hopefully, we can launch in September,” Lombos said.

DMCI Homes applied for the issuance of P500 million worth of bonds, with an option to sell another P500 million.

Proceeds from the bond issue may be used for corporate expenses. 

He said the issuance is intended to provide opportunities for prospective homeowners.

The bonds are available for as low as P5,000 and may also be converted into equity for buyers.

DMCI chairman Isidro Consunji said construction of the new projects is already ongoing. “This will be over a four to five year horizon,” Consunji told The STAR.

He said DMCI Homes will keep density in its projects as low as possible and would stick to its formula of catering to the end-user market and not the tenant type market wherein homeowners lease out their units to third parties.

As such, most of the projects would have three- to four-bedroom units instead of studio type units.

DMCI Homes expects reservation sales to reach P22  billion this year from P20 billion a year ago.

For the first half, reservation sales amounted to P10.44 billion, four percent higher than the P10.08 billion posted in the same period last year.

In Metro Manila, DMCI Homes is set to develop Fairway Terraces in Pasay City. The project will rise across the Villamor Golf Club and will have units with bigger sizes, a low density atmosphere and clear views of the golf course.

In a separate presentation during the company’s annual stockholders’ meeting last month, Consunji said DMCI Homes is looking at new platforms to grow its business, such as mass housing and office leasing.