Stock News 2013: Vista Land hikes capex to P20 billion

English: Manny Villar was seen on Tinalak/T'nalak Fiesta Street Parade and Street Dancing taken on South Cotabato SMRAA, Koronadal City during T'nalak Festival on July 18,2009. (Photo credit: Wikipedia)

The real estate unit of the Villar family is jacking up its capital spending to as much as P20 billion this year to take advantage of the robust demand.

Vista Land & Lifescapes Inc. will roll out more residential projects in the provinces in the next two to three months, its top official said.

“We are prepared to spend more than P18.5 billion....We might spend up to P20 billion,” Vista Land chairman and founder Sen. Manuel B. Villar said on the sidelines of the topping off ceremony of the first building of Wil Tower Mall.

Villar said Vista Land is looking to increase its capital expenditures to take advantage of increasing demand for house and lot units.

“We are going to launch 14 new projects in the next two to three months,” Villar said.

For this year, Vista Land will launch residential projects in 12 new locations. As of the first quarter, Vista Land had a presence in 31 provinces and 63 cities and municipalities around the country.

“We are going to open in Marbel in South Cotabato, Sta. Maria in Bulacan, Kalibo in Aklan, Silang in Cavite and Roxas City [in Capiz],” Villar said.

For 2013, Vista Land will launch P30 billion worth of projects offering 15,000 residential units, up from P25 billion and 12,000 units last year.

Villar said the bulk of Vista Land’s sales will come from the house and lot units given the strong demand from end-users and first time home owners.

Vista Land targets to grow its reservation sales by 15 to 20 percent to as much as P50 billion this year from P40.09 billion in 2012.

In terms of high-rise projects, Vista Land has nearly sold out units in the first building of the 42-storey Wil Tower Mall in Quezon City.

The project, in partnership with variety show host and celebrity Willie Revillame, includes a four-storey shopping mall.

Villar said the second tower that will require P1.5 billion in capital spending will be launched when the first building is sold out.

Villar said adjacent lots can also be developed to complement the Wil Tower Mall, which sells units at P3 million to P6 million each.

Vista Land will also expand its portfolio of shopping malls.

“Vista Land has four right now and we are putting up another four,” Villar said.

Specifically, the listed property firm will put up the new phases of Vista Mall in Presidio in Sucat and Evia in Daang Hari. It will also build a Vista Mall in San Fernando in Pampanga and in Antipolo.

http://www.philstar.com/business/2013/06/03/949378/vista-land-hikes-capex-p20-b

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Stock News 2012: SM Prime allots P63 B for Phl, China expansion

English: SM Supermalls logo (Photo credit: Wikipedia)SM Prime Holdings Inc., the country’s largest retail landlord, has set a P63-billion three-year capital spending plan to rapidly expand its presence here and in China in its bid to become a regional player.

SM Prime chief financial officer Jeffrey C. Lim said the company is spending P21 billion each year to build four to five new malls at home and one mall annually in China to take advantage of rising consumer spending.

He said the company plans to open up to 18 malls in the next three years.

He said funding for the massive expansion will come from a combination of internally-generated cash and borrowings.

SM Prime expects to end the year with a total of 46 malls across the country and five in China, with an estimated combined gross floor area of 6.3 million square meters.

Earlier this year, it opened SM City Olongapo in Zambales, SM City Consolacion in Cebu and SM City San Fernando in Pampanga. Three more malls are expected to open in the second half - SM City Gen. Santos in South Cotabato, SM City Lanang in Davao City and SM Chongqing in China.

SM Prime’s four malls in China, located in the cities of Xiamen, Jinjiang, Chengdu and Suzhou, contributed P320 million or seven percent to the company’s aggregate earnings. Combined revenues amounted to P1.27 billion or nine percent of total.

The SM China malls are enjoying healthy increases in rental rates, with average occupancy level now at 95 percent.

SM Prime said it continues to see vast opportunities in China given the world’s second largest economy’s growing population and emerging middle class.

The group is currently looking to acquire five properties in its second biggest market. It wants to reach new markets to further widen its geographical footprint.

The expansion is also in line with the SM Group’s strategy to list its China assets either in Hong Kong or Singapore by 2015 in a public offering that could fetch proceeds worth up to $500 million.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=833992

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Stock News 2012: SM Prime posts P2.5-B net earnings in Q2

SM City Cagayan de Oro (Photo credit: Wikipedia)
Shopping mall giant SM Prime Holdings Inc. reported better-than-expected financial results in the second quarter with net earnings rising 16 percent to P2.49 billion.

This brings SM Prime’s six-month net income to P4.92 billion or 15 percent higher than the P4.27 billion recorded the previous period.

Revenues also climbed 15 percent to P14.57 billion while EBITDA (earnings before interest, taxes, depreciation and amortization) went up 12 percent to P9.71 billion

Operating income likewise increased 15 percent to P7.78 billion. The growth was attributed to the eight-percent rise in same-store sales, new store openings, and the improved performance of the group’s malls in China.

SM Prime’s four malls in China are located in the cities of Xiamen, Jinjiang, Chengdu and Suzhou with a total gross floor area of 0.6 million square meters. These contributed P320 million or seven percent of the company’s aggregate earnings.

In terms of gross revenues, these four malls pumped in P1.27 billion, accounting for nine percent of total.

The SM China malls are enjoying healthy increases in rental rates and improvement in occupancy levels. The average occupancy rate for the four malls in China is now at 95 percent.

“We are pleased to reach our targets for the first half of this year on the back of robust consumer spending and strong economic fundamentals. In line with this, we look forward to the second half of the year with more confidence in implementing our expansion plans, especially as we move towards the holiday season,” said SM Prime president Hans T. Sy.

Operating expenses likewise expanded 15 percent to P6.79 billion owing to higher administrative expenses particularly utilities, business taxes and manpower expenses.

SM Prime has 44 supermalls strategically located across the country with a total gross floor area of 5.3 million square meters.

Earlier this year, it opened SM City Olongapo in Zambales, SM City Consolacion in Cebu and SM City San Fernando in Pampanga. Three more malls are expected to open for the balance of the year -- SM City Gen. Santos in South Cotabato, SM City Lanang in Davao City and SM Chongqing in China.

By the end of the year, SM Prime will have 46 malls in the Philippines and five in China with an estimated combined gross floor area of 6.3 million square meters.

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Stock News 2011: SMC wants 51% of Indophil

Image via Wikipedia
Diversifying giant San Miguel Corporation is holding its ground and will not be making any more investment in Indophil Resources NL unless the Philippine conglomerate is allowed to acquire 51 percent controlling stake in the mining company.

In an interview, SMC president Ramon S. Ang said there are many unresolved issues regarding SMC’s planned investment in Indophil Resources and these will have to be resolved first before they buy any more Indophil shares.

Ang said in a text message earlier that among these issues is SMC’s requirement that it gets a controlling stake in Indophil.

Because of these unresolved issues, Ang said they are not buying any more Indophil shares even if it means the dilution of SMC’s 10.1 percent stake in Indophil which it had acquired for Australian$41.29 million.

SMC’s main interest in Indophil is the latter’s 37.5-percent stake in Sagittarius Mines, Inc. (SMI), which has the rights to the Tampakan gold and copper mine in South Cotabato.

http://mb.com.ph/articles/322380/smc-wants-51-indophil

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Stock News 2011: SMC extends due diligence on Indophil

Image via Wikipedia
Diversifying giant conglomerate San Miguel Corporation and Indophil Resources NL of Australia have agreed to extend the exclusivity period of their share placement agreement by one month.

In a disclosure to the Philippine Stock Exchange, SMC chief finance officer Ferdinand Constantino said the period under which SMC has the exclusive right to buy more Indophil shares has been extended to February 10, 2011 from January 10.

The agreement was part of a deal wherein SMC acquired a 10.1-percent stake in Indophil which owns a 37.5-percent stake in Sagittarius Mines, Inc. (SMI), which has the rights to the Tampakan gold and copper mine in South Cotabato.

The Tampakan deposit, discovered in 1992, is said to be a 2.4 billion tonne mineral resource and is ranked as the fifth largest known undeveloped copper-gold deposit.

The deal, worth A$41.29 million (approximately US$40 million) at A$0.86 per share, gave SMC an exclusivity period to complete its due diligence and decide whether the company should initiate a tender offer or other proposals to acquire additional shares in Indophil.

http://www.mb.com.ph/articles/296951/smc-extends-due-diligence-indophil

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