Filinvest Land Inc. (FLI) on Wednesday said it bagged the contract to develop a smaller portion of Cebu’s South Road Properties.
The company said in its disclosure to the Philippine Stock Exchange that the Cebu City government declared FLI as the winning bidder for the 19.2 hectares of land in SRP.
The property will be developed and owned by FLI, together with its office-development subsidiary Cyberzone Properties Inc., its central business district affiliate Filinvest Alabang Inc. and other possible strategic partners, the company said.
“The property will be developed in accordance with the required minimum development plans of the Cebu City government as specified in the bidding guidelines, wherein 70 percent of the buildable area is intended for commercial and/or office use and the remaining 30 percent for residential use. The new development will complement the ongoing City di Mare project of FLI in SRP,” the company said.
The bigger portion of the SRP, involving some 26 hectares of reclaimed land, was earlier won by a partnership of SM Prime Holdings Inc. and Ayala Land Inc., two bitter rivals on several of the government’s ticket projects.
FLI said that starting this year, the company will feel the effects of its previous investments to increase its recurring income segment of the business.
Currently, its recurring income business accounts for about 30 percent to 40 percent of the total.
Josephine Gotianun-Yap, the company’s president and CEO, earlier said that the company is targeting an income growth almost the same as last year of about 16 percent.
“We are launching many projects but most of that are [for] recurring [income],” she said.
Yap earlier said that the firm is on track with its plans to triple its recurring income portfolio by 2019 to about 970,000 square meters.
“We are targeting to increase our gross leasable area to three times our current office and retail space inventory within the next five years. For 2015 we are adding around 67,506 sq m of office space and 85,034 sq m of retail space to our portfolio,” Yap said.
“The outstanding performance of FLI in 2014 was brought about by the company’s ability to address the needs of homebuyers as reflected in the consistent growth of residential sales and its ability to execute its plans to increase office, as well as retail spaces in key locations nationwide,” she said.
Last year the firm launched P12.5 billion worth of residential projects.