DMCI Homes increases capex budget to P18.6 B

Leading mid-segment residential developer DMCI Homes has earmarked capital expenditures of P18.6 billion for its 2023 project development and land acquisitions, an 18 percent upturn from P15.8 billion in 2022.

In a disclosure to the Philippine Stock Exchange made by parent company DMCI Holdings Inc., the firm said its its capital spending rose by 27 percent to P4.2 billion in the first quarter of 2023 from P3.3 billion in the same period last, which mostly went to project development.

DMCI Homes reported a 49 percent increase in its Luzon land bank from 65.1 hectares to 96.9 hectares after acquiring properties in Batangas, Bulacan, Laguna and Pampanga.

With the expanded land bank, DMCI Homes plans to develop new formats such as leisure, condotel and township projects.

“We recognized a demand for leisure properties and saw it as an opportunity to expand our product line. By offering quality and best value in this market, we hope to duplicate the success of our core residential line,” said DMCI Homes President Alfredo R. Austria.

Scheduled for launch this June, Solmera Coast is an Asian tropical-inspired condotel project in San Juan, Batangas under the DMCI Homes Leisure Residences sub-brand.

Under the condotel format, the condominium units will be owned by individual investors, who will then rent out their units to guests through DMCI Homes Leisure Residences.

This business model allows the company to generate revenues from both the sale and rental of the units. Buyers, in turn, can use the unit as a vacation home and receive a share in the rental revenue, which can help offset the cost of ownership.

“DMCI Homes Leisure Residences is for buyers who want to invest in premium properties that provide one-of-a-kind experiences and attractive returns,” added Austria.

Aside from Solmera Coast, the leisure sub-brand will include a Japanese-inspired nature park in Laguna and a mountain resort in Benguet.

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The article was originally published in Manila Bulleting and written by James A. Loyola