Vista Land allocates P3B for new commercial centers

MANILA, Philippines - Property firm Vista Land & Lifescapes Inc. has allotted P3 billion to introduce commercial centers and expand existing facilities in various community projects.

Venturing into more commercial development projects is in line with plans of the country’s largest homebuilder to generate at least P1 billion in revenues from its leasing portfolio by 2017, its top official said.

“We plan to spend about P3 billion on commercial development in a variety of areas, especially our Evia project in southern Metro Manila along the Daang Hari Road,” said Vista Land CEO Manuel Paolo Villar.

Proceeds from the recent P5-billion bond issuance will also be used to beef up the commercial center in Lakefront township project in Sucat, Villar said.

Commercial centers feature supermarkets, food shops and beverage outlets catering to residents. It has partnered with the likes of Rustan’s Group and Puregold Price Club Inc. for retail offerings in various residential projects.

Villar said the property firm is also building small commercial centers near Vista Land subdivisions.

“Our target has always been P1 billion in revenues (from the leasing portfolio) by 2017,” Villar said.

Given the considerable amount of commercial space that will start generating revenues in 2014 and 2015, Vista Land is on track to reaching its five-year goal, Villar said.

The real estate firm expects revenues from the commercial centers to hit at least P100 million this year from P60 million last year.

Income from the leasing office and commercial space is expected to help improve the performance of Vista Land.

Villar said at for the entire property group, Vista Land in on track to reaching its target of double-digit income and revenue growth this year.

Robust sales from various residential projects allowed the country’s largest homebuilder to hit the P5-billion income mark for the first time at P5.06 billion in 2013, up 15 percent from P4.38 billion a year ago as real estate sales jumped 23 percent to P20.02 billion from P16.33 billion year-on-year.

“From what we see, I think there continues to be growth in the sector, and it’s quite promising especially in our market, which is the end-user market,” Villar said, adding that end-user demand remains strong, supported by liquidity in the banking sector.

Vista Land is the holding company of five business units: luxury brand Brittany, upper middle income segment Crown Asia, middle income brand Camella Homes and condominium builder Vista Residences. It recently introduced socialized housing arm Lumina Homes Inc. that will sell homes at P1.5 million and below.

To further increase demand, Vista Land is looking at issuing more Homebuilder bonds, Villar said.

“Our Homebuilder bonds are there not only financing purposes but also for marketing and branding. So we might launch it this year,” Villar said.

In 2012, Vista Land raised P2.5 billion from the sale of Homebuilder bonds. Bondholders can use the investment proceeds to buy Vista Land properties.

The country’s largest homebuilder will launch P28 billion worth of projects this year, two-thirds of which are under middle income brand Camella Homes. In 2013, the country’s largest homebuilder launched 35 projects with an estimated value of P26.1 billion, 31 of which are in the low and affordable segment.