Global Estate adopts prudent outlook

MANILA, Philippines — Global-Estate Resorts Inc. (GERI), the Andrew Tan-owned tourism estate developer, is taking a prudent outlook but will continue to seek opportunities despite the difficult business environment.

GERI cut its capital spending by 38 percent this year to P4 billion from P6.5 billion a year ago as restrictions brought about by the coronavirus disease 2019 or COVID-19 pandemic continue to restrict the movement of materials and workers in the company’s construction sites.

During the company’s annual stockholders meeting yesterday, GERI president Monica Salomon said they would continue to observe financial discipline to ensure financial stability through prudent cash management and operational efficiency.

GERI has deferred the launch of new townships but will push through with the launch of projects within its integrated estates.

The company is turning over P3 billion worth of residential and commercial projects this year, as the company stands to its commitment of timely delivery of projects to customers.

These project turnovers include residential units and commercial lots at Boracay Newcoast in Aklan, Twin Lakes in Laurel, Batangas, and Sta. Barbara Heights in Iloilo.

Moving forward, the company has “allocated funds for strategic property acquisitions to allow (it) to take advantage of opportunities for business expansion.”

Salomon said turnovers are on track despite the pandemic.

“With cautious optimism, we observed that as soon as quarantine restrictions in Metro Manila were relaxed in June 2020, reservation sales went back to pre-lockdown levels, growing to P3.6 billion from P2.2 billion in the first quarter.”

“Surprisingly, while tourism in the country has ground to a halt, Boracay Newcoast continued to be the bestseller among our integrated estates, proof of an underlying demand for resort properties,” Salomon said.

Salomon said the company also saw a significant rise in residential lot sales in its projects such as Eastland Heights in Antipolo, Arden Botanical Estate in Cavite and Hamptons Caliraya in Laguna.