Filinvest earmarks P21 billion for 2021 capex

MANILA, Philippines — Gotianun-led Filinvest Development Corp. (FDC) allocated P21.2 billion for its 2021 capital expenditure as it ventures into new banking and real estate projects.

FDC president and CEO Josephine Gotianun-Yap said the holding firm crafted a four-pronged strategy to weather the challenges posed by the pandemic as it tries to cut its losses incurred mostly in the property sector due to the imposition of mobility restrictions.

FDC said about a quarter of the allocation would be used to invest in new ventures, such as in eco-sustainable spaces. The rest of the amount will be spent to expand its real estate portfolio.

The company intends to use within the year the remaining 86 hectares of prime commercial lands in its benchmark project Filinvest City in Alabang, Muntinlupa City.

Gotianun-Yap said the move was part of the company’s strategy to maximize its resources to recover from the pandemic.

She also said the holding firm’s financial business under EastWest Bank is expected to grow this year as the bank plans to expand its consumer offerings through its network of 468 branches nationwide.

The bank is also slated to widen its digital reach with the introduction of Komo, the first exclusive digital banking service license granted by the Bangko Sentral ng Pilipinas to a local bank.

In energy, FDC eyes to secure a contractor for the remaining 174-megawatt capacity of its coal thermal plant in Mindanao. The facility serves as one of the providers of replacement energy for generators in the island.

“With Mindanao’s growth rate, we are in a good position to contract the remaining capacity. The revenues from this will directly go straight to the bottomline,” Gotianun-Yap said.

The FDC chief hopes the government will push through with the lifting of travel restrictions outside of Metro Manila, the epicenter of the virus.

Revenues from hotels operated by Filinvest dropped by nearly two thirds to P1.2 billion last year as occupancy rates deteriorated due to the pandemic.

“Easing of domestic tourism outside of Metro Manila has been helping lift turnover at Crimson in Boracay and Crimson in Mactan,” Gotianun-Yap said.

FDC operates in the property, banking, sugar and energy industries through its subsidiaries and manages multiple hotels in Metro Manila, Clark and Visayas.