REAL-estate firm Eton Properties Philippines Inc. is looking at developing two more properties in Cebu and Batangas, while still undertaking the construction of 10 existing projects.

“The Cebu project is a hotel that would be three times bigger than Shangri-La [Mactan] property there,” president Danilo E. Ignacio told reporters after the stockholders’ meeting on Friday. Ignacio added they are also eyeing a 200-hectare land in Batangas that, like the property in Cebu, is also owned by sister-company Philippine National Bank (PNB).

He said these projects for these properties are still under conceptualization and are subject for approval by the Eton board. If approved, the projects would be funded and managed through a joint venture with PNB, Ignacio explained.

“But we’re still focusing on the construction of our existing residential and office projects,” he pointed out.

Last year, Eton began construction and selling of 10 residential, commercial, and mixed-use projects in Makati City, Manila and Quezon City, as well as in Laguna. Ignacio said capital expenditure for these projects the construction—which could run until next year—is “exactly P10 billion.”

He told stockbrokers, said to be representing 1.345 billion Eton shares, that the company exceeded its sales profit last year since the Lucio Tan Group of Companies ventured into real estate.

The company executive credited sales growth to the increase in remittances from overseas Filipino workers in a low-interest rate regime” and favorable terms which makes housing financing more accessible to many.”

However, in its statement of unaudited cash flows, Eton posted lower receipts of deposits from customers at P281.8 million for the three months which ended March 31 compared with the quarter that ended July 31 last year when the company posted higher cash flow from financing activities at P335.6 million.

The company added that its eight months of operations ending Dec. 31, 2007, resulted in a net loss of P146.8 million.

For the first quarter this year, Eton posted a net loss of P69.5 million.

Ignacio said the company expects to start realizing revenues from sale of the units beginning this year after the construction phase is completed.

The company, however, is concerned about the rising prices of steel which has already increased by 57 percent since January. Ignacio said they are also closely monitoring the impact of the prices of cement and copper for electrical wires. “We’re also thinking the strengthening of the peso ‘will kick up the impact on our gross margins.”

Ignacio told stockholders that the company plans to continue expanding its international marketing in countries not affected by the sub-prime fallout in the US.

He credits the “success” of Eton to the “vast land-bank of the Lucio Tan Group” and the synergy of sister-companies, PNB and Philippine Airlines.”

Eton’s two residential projects in Manila and Makati were sold out in a period of just two months while the loft-condominium development in Ortigas, Mandaluyong posted sales of over 50 percent.

Eton’s residential project in Makati City, behind the Asian Institute of Management in Legaspi Village also has almost 50-percent of units sold. The publicly-listed firm’s residential building near De La Salle University in Manila has sold over 60 percent of its total units.

The first tower of the condominium project in Novaliches, Quezon City is already sold out. “We’re now in the process of selling the second tower,” Ignacio added.

The firm is already building the tenth floor of its 12-floor edifice near the MRT station in Quezon City while it expects to complete by next year its residential building near Corinthians Plaza along EDSA.

MOBILE-phone users may finally see rates go down. This, as the country’s telecommunications companies recently said they will carefully study proposals from the National Telecommunications Commission’s (NTC), which seek to limit access charges in short message service (SMS) to not more than P0.15 and put a cap of P1.50 per minute for cellular calls.

Worst beating yet for Meralco

TWO of the Lopez-controlled listed companies were among last week’s biggest losers. These were First Philippine Holdings Corp., an index stock and Benpres Holdings Corp.

New York-listed AES Philippines Corp. interested in participating in the bidding for the energy contracts of the National Power Corp. (Napocor) with independent power producers (IPPs).

PUERTO Princesa—Publicly listed Holcim Philippines Inc. is calibrating its industry growth projections for the year to only 6 percent to 8 percent due to uncertainties caused by the US sub-prime mess and resulting recession, as well as the continued increase in prices of construction materials. 

REAL-estate firm Eton Properties Philippines Inc. is looking at developing two more properties in Cebu and Batangas, while still undertaking the construction of 10 existing projects.

IT was indeed a busy week for Government Service Insurance System (GSIS) president and general manager Winston Garcia. There was, of course, the annual stockholders meeting of Manila Electric Co. (Meralco) on Tuesday where the Lopez Group seemingly won Round 1 by retaining the management status quo chaired by Manuel Lopez.