ABOITIZ Land Corp. (AboitizLand) said it expects to close a landbanking deal within the year as the company work to be active in property development in Luzon.
AboitizLand CEO said the company will allocate a significant portion of its P5-billion capital expenditures for the said venture.
“For us it would make sense [to buy a property] Southern Tagalog area, where there’s already Lima [Land]. So that’s where it makes sense for us,” Aboitiz said.
LimaLand operates the Lima Technology Center in Lipa, Malvar in Batangas.
“We’re looking for areas suitable for residential development. But we’re not going to enter the high-rise segment. We’re going for the niche market. We’ll focus on the house and lot market,” Aboitiz added.
The company said it may also venture into leisure estates, depending on the location of an area.
“Each area is unique. The plan is really to do house and lot and concentrate on the amenities,” he said.
In 2014 the company spent some P5.4 billion in capital expenditures.
Last year AboitizLand reported P633 million in profits, which was 132 percent higher than the prior year’s P273 million. Revenues hit P3 million, 86 percent higher than last year due to growth across all its business units.
The company said it want to contribute to the earnings of its parent firm Aboitiz Equity Ventures Inc., a company that is mostly into power generation.
As of last year, AboitizLand contributed only 4 percent of the total revenues.
The company said it is trying to be active and aggressive in the property development as it expands in Cebu, where the Aboitiz family’s business is based.