Robinsons Land Corporation, the property development arm of the Gokongwei Group, is earmarking about P20 billion for capital expenditures this year—23 percent lower than the P25.86 billion actually spent in 2022.
During the firm’s annual stockholders’ meeting, RLC President Frederick D. Go said the capex will be used for the ongoing development of malls, offices, hotels, and warehouse facilities, acquisition of land and construction of its residential projects.
He added that the capex will be funded by internally generated cash from operations as well as borrowings. For the first 3 months of the year, RLC said it spent P4.52 billion in capital expenditures.
“RLC forges ahead with confidence and optimism. In 2023, we will continue to invest in our diversified portfolio, expanding the breadth of our products and introducing customer driven innovations to deliver sustainable value in an ever-changing environment,” said Go.
He noted that, “Robinsons Malls is poised to enhance his portfolio and elevate the shopping experience with the completion of Opus Mall in Bridgetowne. Opus is a metropolitan high-end lifestyle center that will house a wide selection of international retail brands.”
Upon completion, the Opus mall will increase Robinsons Malls’ total gross leasable area by 3 percent to 1.66 million square meters.
“Robinsons Offices, on the other hand, will complete GBF Tower One in 2023. This state-of-the-art Grade A office building will cater to both traditional and multinational corporations in addition to BPO companies,” said Go.
Meanwhile, he said that, “With the resurgence of international travel and tourism, Robinsons Hotels and Resorts is expected to accelerate growth across its well-diversified brands.”
“The company will cater to the anticipated surge in demand with the launch of Westin Manila Sonata Place Hotel, RLC’s fourth international branded hotel, and the opening of the remaining rooms in Go Hotel Plus Tuguegarao and Fili Hotel at Nu Star. These will increase room count by 18 percent to over 4200 keys,” said Go.
Meanwhile, RLX aims to become the fastest growing logistics facility provider in the country with the addition of warehouses in Calamba, Laguna to increase its GLA by 47 percent to 244,000 sqm from 167,00 sqm.
“We will also continue to make substantial progress in the development of our landmark destination estates, the 30-hectare Bridgetowne in Pasig and Quezon City, the 18-hectare Sierra Valley Estate in Taytay, and the 200-hectare Montclair in Pampanga,” said Go.
RLC continues to be optimistic after posting a banner year in 2022 and Go noted that, “We like what we see in our residential division, which has been growing tremendously, and are near pre-sales record amounts. Moreover, our residential joint venture projects are expected to start contributing significantly this year.”
“The office businesses are expected to sustain its growth while our hotels and resorts business is nicely recovering with the resurgence of travel, and the return of MICE and large scale events,” he added.
Go said that, “at a strategic corporate level, we will closely monitor REIT (real estate investment trust) opportunities for our malls and our logistics businesses.”
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The article was originally published in Manila Bulletin and written by James A. Loyola