Global-Estate Resorts eyes 20% growth in net profit, revenues

Screengrab from www.global-estate.ph

MANILA, Philippines — Property tycoon Andrew Tan-led Global-Estate Resorts Inc. has built up a property inventory of close to P30 billion, which the tourism estate developer expects to contribute to at least a 20-percent growth in net profit and revenues each year.

During the company’s annual stockholders meeting on Thursday, GERI president Ferdinand Santos reported that bulk of the current inventory was from the company’s flagship project – the beachfront estate Boracay Newcoast – where eight projects had so far been launched with net sellable area of 223,124 square meters valued at P21.3 billion.

Other existing projects have built up inventory with value broken down as follows: Twin Lakes in Tagaytay (P3.8 billion), Sta. Barbara Heights township in Iloilo (P1.8 billion), Pahara at Southwoods (P2.8 billion) and Southwoods residential development (P250 million).

For this year, reservation sales are targeted to hit P10 billion or about the same level as 2013, but from January to May this year, sales take-up had already amounted to P7.4 billion, Santos said.

To achieve the annual growth target of 20 percent in both topline and bottomline, Santos said GERI would launch additional components in existing integrated tourism estate, particularly Boracay Newcoast and TwinLakes.

In Boracay, GERI is set to launch phase 2 of the Belmont Luxury Hotel and phase 3 of the Boracay Portico as well as Shiraz, the third condominium development at Twin Lakes’ Vineyard Residences.

Likewise part of the growth strategy is to develop the 561-hectare Southwoods City in Laguna into a fully integrated township project envisioned to be the next central business district, residential, business, commercial and leisure hub south of Metro Manila.

GERI expects to break ground for the Southwoods Mall by July and start operations by the fourth quarter of 2016, boosting its recurring income base. The mall is envisioned to be a vast lifestyle shopping center with 68,515 square meters of leasable space.

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