GLOBAL-ESTATE Resorts Inc. (Geri), a unit of Megaworld Corp., said its income may grow by 30 percent this year to about P1.3 billion and expects its rental income to grow four times by 2020, as its opens new commercial centers and office towers in its various tourism estates across the country.
The company said it plans to spend P6.5 billion in capital expenditures this year as it launches four new projects and complete five existing ones.
For the next three years, however, it will spend P20 billion for its various developments.
Geri, which holds vast tracts of land bank, expects its rental income to reach P150 million this year, coming from office and commercial retail revenues in its properties in Pasig City, Laguna and Batangas. Within the year, the company will also open retail spaces in Southwoods Mall and Southwoods Office Tower at the 560-hectare Southwoods City. Another row of retail spaces will also open in Boracay Newcoast.
“In three years, our target-rental income is P650 million, which is more than four times our rental income this year. We want to build our recurring- income portfolio to ensure a stronger bottomline,” said Monica Salomon, GERI president.
GERI said it is launching more what it called integrated-lifestyle communities in the next three years.
“This new concept of property development was rolled out by GERI when it launched Eastland Heights in Antipolo late last year,” she said. “We have three [integrated communities] in our pipeline for launch before 2020. These developments are all in the south of Metro Manila where there is still abundance of nature,” Salomon said.
Currently, GERI has six integrated leisure and tourism estate developments across the country covering around 2,786 hectares of land. Megaworld currently owns 82.3 percent of GERI and has taken an aggressive role in transforming its vast land bank into mixed-use developments.