Haus Talk starts dev't of P500m housing project in Antipolo
Haus Talk [HTI 1.30 8.33%], the PSE’s newest housing developer after its IPO in mid-January, disclosed that it has already begun development on the first project in its 2022 pipeline, a 100-unit “horizontal” (not tower) development in Antipolo called “Celestis”.
HTI anticipates that the project will bring in around P500 million in revenues, and expects to book approximately P200 million of that as profit.
HTI said that it will begin selling units by the end of Q1/22, and that it will sell half of the units in 2022 and the remainder in 2023, with project completion scheduled before the end of 2023.
HTI said that this is only the first of the projects that it will begin in 2022, but that all of the projects will be “highly profitable”.
For reference, HTI said that the total earnings from this Celestis project (~P200 million) would exceed HTI’s total earnings in 2021.
MB BOTTOM-LINE
Yes please, more development, please! With the numbers that HTI provided, you can see why regional low- and middle-class developers are basically operating in an all-out growth panic.
Demand is soaring, margins are huge (40%!), and the turnaround from sweaty land acquisition to booked revenue is very quick.
These little developments might be too small for the mega fish like Ayala Land [ALI 36.65 0.95%] or Robinsons Land [RLC 19.10 0.52%] to handle, but they’re just the perfect size for SMEs like HTI to tackle.
These little project-based developments definitely add up, but the key to really making money is in simultaneous development. How many projects like this can HTI develop at one time? Between capital, land, raw materials, labor, construction equipment, and sales infrastructure, what will end up being the bottleneck in HTI’s growth plan that shareholders will focus on in the years to come?
The stock is down around 13% from its IPO price of P1.50/share, so shareholders will be very eager for good news starting in Q2 when sales figures from this project should start to show up in the financials.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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