Filinvest Land, Inc. (FLI) will spend P20 billion this year to sustain the growth of its existing residential and commercial businesses, according to a BusinessWorld report.
Ana Venus A. Mejia, FLI treasurer and deputy chief financial officer, said the company has set aside P20 billion in capital expenditures (capex) this year, but declined to provide the actual spending last year.
In August, the Gotianun-led developer said its capex for 2016 may be lower than the programmed spending of P24 billion in 2015.
FLI is bringing to the market new projects valued at P14.4 billion this year, including three new medium-rise building projects and two additional buildings in existing projects.
Aside from the medium-rise buildings, FLI has 12 horizontal residential projects with an estimated value of about P7.2 billion and two high-rise mixed-use buildings with an estimated value of P4.9 billion.
As part of its plan to triple the gross leasable area (GLA) of its business process outsourcing office buildings by 2019, FLI is targeting to complete two more office buildings – Vector 3 with a GLA of 36,345 square meters (sqm) in Northgate Cyberzone and Pasay Cyberzone with a GLA of 36,807 sqm.
For its retail portfolio, the property company is adding another 46,705 sqm to the GLA of Festival Supermall at Filinvest City in Alabang, Muntinlupa, maintaining its position as the biggest mall in southern Metro Manila.
The Il Corso lifestyle strip, a retail project in South Road Properties in Cebu, will contribute a GLA of 35,000 sqm when completed. FLI has started the construction of malls in Tagaytay City and at its Princeton Heights residential project in Cavite.
FLI registered an operating net income of P5.12 billion last year, up 11 percent from P4.61 billion, supported by a 7-percent increase in consolidated revenues to P16.53 billion from P15.47 billion.
Real estate sales rose 6.4 percent to P14.05 billion in 2015, while rental revenue climbed 9.7 percent to P2.48 billion.
FLI has secured long-term lease deals in Clark, Pampanga: the 201.64-hectare Mimosa Leisure Estate property and the 288-hectare portion of Clark Green City.
FLI is a subsidiary of Filinvest Development Corp., the holding firm for the Gotianun family’s businesses in banking, hotel, power, and sugar farming and milling.
Meanwhile, Andrew Gotianun, Sr., the founder of Filinvest Development Corp., passed away on March 10 at age 88.
The net worth of the Filinvest patriarch was estimated at $910 million, making him the 18th richest Filipino in 2015, according to Forbes Magazine.
Gotianun, the chairman emeritus of the Filinvest Group of Companies, is survived by his wife Mercedes and four children, namely Andrew, Jr., Jonathan, Lourdes Josephine and Michael.
Gotianun spent his teenage years salvaging ships in the Visayas to supplement the family income during and after the Second World War. After the death of his father, he found himself becoming the head of his family at age 20.
The volatile nature of the shipping business forced Gotianun and his wife to move to Manila in the mid-50s, venturing into second-hand car financing. In the late 1980s, he decided to focus on real estate.
At the Anvil Business Club in August 2014, Gotianun said aside from hard work, the right attitude is needed to succeed in life and business.
“Be fair in all your dealings, may it be in your family or in your business. At the end of it all, what matters is not how much money you make but how honest you are,” he said.
Today, the Filinvest companies are run by his children. Jonathan is chairman of Filinvest Development Corp. and its banking arm EastWest Banking Corp., while Lourdes Josephine is president and chief executive officer of Filinvest Development and its real estate arm Filinvest Land, Inc.