Vista Land boosts capex to P35 B

MANILA, Philippines - Vista Land & Lifescapes Inc. is allotting P35 billion for capital expenditures this year, up 16 percent from the previous year.

 Of that amount, P26 billion will go to Vista Land while the remaining P9 billion will go to Starmalls.

In a briefing yesterday, Vista Land president and CEO Manuel Paolo Villar said the company was targeting to launch 30 projects this year, higher than the 20 projects a year ago.

The company grew its net income by 13 percent last year to P8.1 billion on strong growth from its leasing business, which now accounts for a fifth of the total earnings.

“We are very pleased to report that 2016 is another banner year for the company,” Villar said.

Revenues increased seven percent to P30.9 billion.

The company’s leasing business came mostly from Starmalls, which delivered strong double-digit growth in its bottomline.

Vista Land’s consolidated assets reached P175 billion as of the end  of 2016.

“Our acquisition of Starmalls last November of 2015 was opportune as our 2016 performance was driven primarily by our leasing business which registered robust growth in revenue, EBITDA and net income,” Villar said.

Villar said there has been a slowdown in demand for the residential space and an excess in supply, particularly in Metro Manila.

 “Our residential segment was affected by the slower demand from the OFW market specifically from the Middle East.  But we believe that the slowdown was confidence driven and will be temporary,” Villar said.

 Vista Land is the holding company of five residential business units, Brittany, Crown Asia, Camella Homes, Communities Philippines, and Vista Residences with the addition of Starmalls, its commercial business arm.

 Company chairman Manuel Villar Jr. said the company is optimistic about its growth prospects for this year, especially on the leasing side which provides a significant source of recurring income in addition to its core and stable end-user business.

He said the firm plans to ramp up its retail portfolio.  It expects gross floor area to reach 1.3 million square meters by 2018 from 882,009 sqm. at the end of 2016.

 “In addition, we have identified about 100 areas or over 600 hectares of land from our existing developments around the country,” the elder Villar said.

 Vista Land has an established presence in about 100 cities and municipalities across 37 provinces and intends to focus on the development of Communicities, integrated urban developments combining lifestyle retail, prime office space, universities, healthcare, themed residential developments and leisure components.

Villar’s son Paolo said their goal is to eventually be present in 200 cities and municipalities.