THE board of Rockwell Land Corp., the property development arm of the Lopez group, has approved the allocation of P7 billion in capital expenditures (capex) coming out of its total retained earnings of P12.1 billion as of end September.
In its disclosure to the Philippine Stock Exchange, the company said the capex will be for 2019 through 2021.
The company did not state the total amount it will spend during those years, which may include some borrowings.
This year, the company earlier said it is spending P14 billion in capex, the bulk of which will be spent on land banking, as it wants to achieve certain ratio as against its assets. It will spend between P4 billion and P5 billion allocated for land banking for 2018 alone.
Last year, the company spent P14 billion in capex, but most of that was to finish its projects, officials said.
Rockwell’s land bank stands at around 50 hectares, or 3 percent. The company, known for its developments aimed at the higher end of the market, targets a ratio of 12-percent land bank of its assets in one to two years, which translates to about 64 hectares.
At a ratio of 100 percent of its assets, which translates to about 284 hectares, the company needs to increase its land bank by around 220 hectares through next year.
Early this year, Rockwell announced the launch of The Arton’s second tower, the company’s first premium high-rise development in Quezon City. It launched the first tower last year.
“Our venture into the Quezon City area surprised us with robust sales. Riding on this success, we will officially open inventory for Arton North this June with different sizes per unit type to cater to different market profiles,” Rockwell Land President and CEO Nestor Padilla said.
The P15.6-billion three-tower project is a joint venture with Japan’s largest real-estate company, Mitsui Fudosan Inc. It features an 80:20 landscape-to-building ratio. The entire project is scheduled to be completed by 2023.
Rockwell is also set to launch its first resort development in Mactan, Cebu.
“We remain on the move with our newest development in Punta Engaño boasting of beachfront living. The 5.3-hectare property will have over 200 residential units and a hotel that will serve the growing tourism industry,” Padilla said.