Torre Lorenzo investing up to P32B for 20 projects
Posted on January 25, 2017
http://www.bworldonline.com/
TORRE LORENZO Development Corp. (TLDC) is investing about P32 billion to complete at least 20 residential and leisure developments by 2020 and sustain a 25% annual growth.
TLDC will begin developing Torre Lorenzo Malvar in Manila City, a 45-story residential tower near the University of the Philippines- Manila, Philippine General Hospital, St. Paul University-Manila and Philippine Christian University.
The company, meanwhile, will bring its Tierra Lorenzo line of mixed-use estates in San Fernando, Pampanga to cater to returning overseas Filipino workers. Similar developments will start in Dasmariñas, Cavite and Lipa, Batangas.
TLDC will open its second hotel within the year as well. The company will develop a property in Baguio under its homegrown brand T Hotel, which was first introduced in Lipa, Batangas.
The property developer allotted between P30 billion and P32 billion for capital expenditures (capex) in the five years to 2020, Chief Finance Officer and Senior Vice-President for Support Services Emmanuel A. Rapadas told reporters on Tuesday.
“For this year, the total project disbursement estimate is about P2.5 billion, but we’re committing at least P6 billion for the project to be launched. Those are five projects, so somewhere between P6 billion and P7.5 billion,” Mr. Rapadas said.
“In the next 10 years, we’re looking at a total investment of about P60 billion. And in the next five years leading to 2020, we’re looking at anywhere between P30 billion and P32 billion in capex spent,” the company official added.
TLDC will keep about 15% of units across its residential projects, as part of efforts to broaden its recurring income base. At present, the company sources about 10% of total revenues from the leasable portfolio.
“We’re gradually building up our recurring income source as we develop the towers, we retain a good number of units for rental income and the commercial units are all going to be owned by the company,” Mr. Rapadas said.
Accordingly, the share of rental income in the company’s revenue pie is expected to increase to 40% toward 2020.
“By the time we are done with our first five-year plan, we should have a gross revenue of about P8.5 billion to P9 billion and net income after tax [of] between P1.3 billion and P1.5 billion,” Mr. Rapadas said, noting that TLDC has posted a 25% compounded annual growth rate.
Aside from strengthening its recurring income stream, TLDC retains a portion of the residential projects to maintain an active role in managing the properties and as part of efforts to protect the brand, Mr. Lorenzo noted.
TLDC is turning over two residential projects offering a total of 1,700 units within the year. These are Torre Central near the University of Santo Tomas in Manila and Torre Sur near the University of Perpetual Help in Las Piñas.
By April 2018, meanwhile, the company will have completed its hotel and residential tower in Davao City under the brands dusitD2 and Dusit Thani of international hotel owner and operator Dusit International.
