Filinvest’s real estate units to get 139-B capex

Filinvest Development Corporation (FDC), the flagship of the Gotianun family, is allocating 138.9 billion in capital expenditures (capex) this year for its real estate businesses.

During the firm’s annual stockholders’ meeting, FDC President Josephine G. Yap said the capex will support their continued pursuit of a dual-pronged strategy of accelerating the monetization of its trading assets and land bank and growing its infrastructure and investment portfolio.

The 2019 real estate capex will be used by Filinvest Land, Inc., Filinvest Alabang, Inc. and Filinvest Hospitality Corporation for land acquisition and property development.

This year, FDC is expected to allocate a significant portion of its property capital expenditure to projects and developments in the Clark corridor, including the Clark International Airport, Filinvest Mimosa+ Leisure City and

the 64-hectare phase 1 of the group’s township development in New Clark City.

“Capital expenditure in 2019 is roughly equally allocated between the trading segment of the real estate business and the investment segment, which includes office, retail, hotel, and logistics park developments,” said Yap.

Part of the budgeted investments includes the expansion of FDC’s hotel portfolio. The firm primarily operates its hospitality business under two brands, Crimson and Quest.

The group has a pipeline of 2,600 additional keys in the planning and construction stages across 10 new hotels and expansions, with a target of 5,000 keys under management by 2023.

FDC believes that its strategy has produced strong results with a 31 percent increase in consolidated net income to 113.4 billion in 2018. Income attributable to equity holders of FDC was 19.8 billion in 2018, a 48 percent increase over the previous year.