Big Property Developers Doubling Down for 2012
May 5, 2012 § Leave a comment
OVER THE last couple of months, big public real estate companies have been disclosing how much capital they’ve been looking to pump into their businesses for 2012.The collective number: over a staggering 100 billion pesos is being pumped into real estate development over the next year.
The Makati Central Business District. Only the beginning as big property developers expand farther than ever before.
More than anything else, the fact that our big property developers are going strong is an indication of a healthy economy and a population that’s willing to invest. It also means that there are plenty of projects to go around, which means plenty of jobs trickling down to the masses.
This is a great time to be GroundBreaking. Let’s keep it up, Philippines!
Hey, Big Spender
Here’s a snapshot of a few players’ capital expenditures for 2012:
Ayala Land (P37 billion)
- Looking to Spend: “ALI president Antonino Aquino said the upward trend is continuing from last year and there is no indication of a slowdown noting that they are developing at an “unprecedented pace” with a capital expenditure budget of P37 billion.“
- Big Project: “Meanwhile, the firm has almost doubled its capital expenditure budget for Centrio, a joint venture development with the Anflogroup in Cagayan de Oro, to P4.7 billion from the initial P2.5 billion.“
Megaworld (P25 billion)
- Looking to Spend: “Upscale property developer Megaworld Corp. is allocating P25 billion for its capital expenditures this year to develop new and ongoing projects.“
- What It’s For: “Megaworld is currently developing over 40 residential projects and several BPO (business process outsourcing) offices in Metro Manila.“
Robinson’s Land (P13 billion)
- Looking to Spend: “Around P13 billion has been earmarked for the development of new malls, residential and office projects under property unit Robinsons Land Corp.“
- What It’s For: “Earmarked for the development of new malls, residential and office projects under property unit Robinsons Land Corp.“
SM Development Corporation (P16.7 billion)
- Looking to Spend: “SM Investments Corp., the listed holding firm of the Sy family, had allotted a capital expenditure budget of P16.7 billion for SMDC this year.“
- What It’s For: “Will be used to finance the completion of ongoing projects and the construction of four or five projects. The developments are equivalent to about 6,000 units, which are slated for launch this year.“
Vista Land (P15 billion)
- Looking to Spend: “Vista Land & Lifescapes has allocated a capital expenditure of P15 billion for the year, 45 percent higher than 2011’s capex budget.“
- Expanding Into: “The firm’s flagship brand Camella continues to expand in emerging markets in the countryside and is unveiling two new projects in Ilocos Sur and Puerto Princesa, Palawan.“