Eton allots P5 B for 2017 capex

Properties Philippines Inc., the property development arm of taipan Lucio Tan, is alloting P5 billion in capital expenditures this year as it targets to launch four projects and move a step closer to its goal of doubling its leasing assets by 2020, officials said yesterday.

In a press briefing following the company’s annual stockholders’ meeting, Eton deputy chief operating officer Josefino Lucas said the company hopes to double its leasing assets to 300,000 square meters by 2020 from 147,000 sqm at present.

Lucas said that when this happens, Eton may revisit plans to again list in the stock market after delisting in 2013 after it was unable to comply with the minimum public float of 10 percent.

“We need to build our capacity in the next two years,” Lucas said when asked whether the company is still keen on going back to being a listed company.

The company is pouring in P5 billion in capex this year as it plans to launch at least four projects. One is a BPO office space in Ortigas with 16,000 net leasable area; another is the Courtyard in Eton City in Laguna which would have 33,000 sqm of leasable space. Another project is a two-tower mixed-use project in Pasay which would have residential and BPO components while the last would be a commercial strip along Ortigas Avenue in Greenhills, which would have both retail and commercial components.

Eton chief finance officer Wilfredo Pineda said the P5 billion capex for this year is higher than the P3.5 billion the company set aside in 2016. It will be funded by both debt and internally generated funds.

During the company’s stockholders’ meeting, Eton president Lucio Tan Jr. said he is optimistic the company would sustain its growth.

“Moving forward, we are highly optimistic that we will stay on the course of sustained growth as more opportunities are turned into more projects that bring shareholder value and returns,” Tan said.

In 2016, the company reported its second year of steady performance.

Gross revenue reached P2.83 billion in 2016, 14 percent higher than the previous year ’s revenues of P2.48 billion. Real estate sales and rental income contributed almost equally to Eton’s revenue stream in 2016, reflecting a more balanced portfolio.

To sustain its growth momentum, Eton will expand its footprint in the office, commercial, and residential leasing markets, with particular focus on leisure and lifestyle projects.

It is also preparing to launch a 36-hectare leisure and lifestyle project in Cebu within the next three years.