Rockwell Land spending up to P5 billion to expand landbank

MANILA, Philippines — Rockwell Land Corp. plans to spend up to P5 billion on land acquisition activities in the next two years as it targets to expand its landbank from three percent to 12 percent of its total assets.

In a briefing following the company’s annual stockholders’ meeting yesterday, Rockwell Land senior vice president for business development Davy Tan said the company needs to acquire about 284 hectares of land to be able to meet the 12 percent target.

“If we probably close more than 50 percent (of the target) this year, we will add 64 hectares. And if we will be successful, 100 percent will add 284 hectares,” Tan said.

He said the company is eyeing to acquire land in Metro Manila, Northern and Southern Luzon, since these areas are where wealth and infrastructure are moving to.

“Aside from properties we will be closing in Metro Manila, we are currently in advanced discussions for mixed-use projects in both the north and south of the Metro. We are very excited about this growth as it will allow us to introduce different products and share the Rockwell lifestyle to new markets,”Tan said.

Rockwell Land chief finance officer Ellen Almodiel said the landbank expansion would be funded mostly by debt and internally generated funds.

Almodiel added that the company is also expecting strong cashflows in the coming years as it is set to turn over a number of projects.

The company will soon launch the second tower of its The Arton project in Quezon City to house about 500 residential units.

The Arton is the company’s first premium high-rise development in Quezon City. The first tower, Arton West, was launched in July 2017, selling P1 billion worth of units in just two months.

“With no official launch yet, the second tower, Arton North, is already performing 20 percent above budget, coming from the strong market reception of Arton West,” Rockwell Land said.

“The Arton North will be located in the heart of the amenities, fronting the expansive main pool deck and housing indoor amenities like the fitness gym, function room and a co-working space,” it added.

The project’s second tower allows investors to choose from more studios to various sizes of two and three-bedroom units for discerning growing families.

Rockwell said Arton West is expected to generate around P4 billion in sales.

“Our venture into the Quezon City area surprised us with robust sales. Riding on this success, we will officially open inventory for Arton North this June with different sizes per unit type to cater to different market profiles,” Rockwell Land president and chief executive officer Nestor Padilla said.

The three-tower Rockwell project, expected to generate P15.6 billion in sales, is a joint venture with Japan’s largest real estate company, Mitsui Fudosan Inc.

The project is expected to be completed in 2023.

Apart from the residential project, the company is also set to launch its first resort development in Mactan, Cebu in the third quarter this year.

The 5.3-hectare property will have over 200 residential units and a hotel that will serve the growing tourism industry. The project is expected to generate P6.2 billion in sales.

The company is also expecting to launch an affordable housing project in Lipa, Batangas with 200 house and lots this year.

Almodiel said the company is allotting capital expenditures of P14 billion, a portion of which will be used for its landbanking efforts.

Rockwell Land reported its highest net income to date at P2.1 billion in 2017, a 15 percent increase from 2016. The company’s 2017 revenue reached P14.3 billion.