Villar-controlled Starmalls Inc. will play a key role in the expansion roadmap of Vista Land seeking to grow more than double its leasable office and mall space in the next two years. Financial services company COL Financial believes the mall business unit of former Senator Manuel B. Villar is on the right track. The firm projects its EBITDA (earnings before interest taxes depreciation and amortization) will post a compounded annual “growth rate of 14.15 percent and net income to grow an average of 10.4 percent annually.”
In a recent article published in the Philippine Star, To further power the expansion, the report said Starmalls also expressed interest to provide some office spaces for the growing businss process outsourcing sector beside some its malls. “This year, Starmalls will add 350,615 square meters (sqm) of GFA, 220,000 of which area already open. They plan to add 135,000 sqm of GFA in 2017 and another 300,000 sqm of GFA in 2018, bringing total GFA to 1.3 million sqm by end of 2018,” the report noted.
Furthermore, COL noted Starmalls would boost the growth of parent company Vista Land this year and the succeeding years. “Not only will its revenues grow faster than real estate sales but being a higher margin business, Starmalls will also accelerate the growth of EBITDA and net income. We forecast Starmall revenues to grow at a CAGR of 40.30 percent from P2.62 billion in fiscal year 2015 to P7.23 billion by full year 2018,” said COL.
“This is a lot higher than our CAGR estimate of 4.5 percent for the real estate segment for the same period,” added COL. As part of its strategy to shift into a totally integrated developer, Vista Land finished this year the purchase of 88.34 percent of Starmalls.
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