MANILA, Philippines - Empire East Land & Holdings Inc., the middle-income residential property arm of tycoon Andrew Tan, is setting aside up to P20 billion over the next five years to accelerate product launches, put on stream new phases in ongoing projects, and tap into new growth opportunities as well.
In a briefing following the company’s annual stockholders meeting yesterday, Empire East president Anthony Charlemagne C. Yu said they are planning to roll out 5,000 new residential units this year as the company aims to double its reservation sales to P15 billion.
The firm expects net profit to rise 15 to 20 percent this year, Yu said.
In the first quarter this year, Empire East raked in reservation sales of P3.25 billion, an unprecedented growth of 121 percent from P1.47 billion the previous level. The figure is already more than 40 percent of Empire East’s reservation sales for the whole of 2011.
Notwithstanding the uncertainties on the global front, Empire East remains optimistic on the real estate sector given strong overseas remittances, increased revenues from the BPO sector, and a booming tourism industry, Yu said.
He said the company is committed to making home ownership an affordable and accessible reality by focusing on innovation, quality engagement, operational excellence and cost optimization.
Empire East is building Rochester, a combination of 10 mid- and high-rise buildings in Pasig City with a total of 2,100 residential units; and Kasara, a resort-inspired residential community near C-5 Road in Pasig.
With Kasara, the company hopes to tap an underserved market of Filipinos moving toward healthy, green and stress-free living. The project features 2,000 studios and one- to three-bedroom homes.
Other projects include Sonoma (the company’s second large-scale residential village in Sta. Rosa, Laguna), Pioneer Woodlands (a six-tower condominium project integrated into major mass transport systems) and San Lorenzo Place (a high-rise condominium building in Makati City).
Yu said funding for the capex will come from internally generated cash and proceeds from a planned pre-emptive rights offering.
Empire East hopes to raise P2.6 billion from the one-for-four stock rights offering.
The shares to be issued will come from the P10 billion increase in the company’s authorized capital.