Empire East allots P25 B for 5-year capex— Empire East Land Holdings Inc. of the Megaworld Group has allotted P25 billion in the next five years to launch and build new projects as it takes advantage of the property boom. The middle-income developer of property tycoon Andrew L. Tan is also in discussions with Japanese gaming billionaire Kazuo Okada for luxury condominiums in the Entertainment City casino complex. “We expect to spend P25 billion in capital expenditures over the next five years,” Empire East president Anthony Charlemagne C. Yu said during the company’s annual stockholders meeting. Yu said this will be the largest five-year capital spending for Empire East, with P5 billion allocated for every year. This will allow Empire East to develop its 450 hectares of landbank in the next few years. Empire East will source the funds from internally-generated cash and from proceeds from a share purchase of parent firm Megaworld Corp., Yu said. Late last month, Megaworld bought P1.26 billion or 1.2 billion common shares in subsidiary Empire East as part of the consolidation of Tan’s property firms. For this year, Empire East expects to post higher income due to strong economic growth and continuous cash flow into the property sector. “We think we can beat the performance last year even with a very high rate of sales last year,” Yu said. Empire East’s profits jumped 26% to P235 million last year from P186.1 million in 2011. Real estate sales climbed 40% to P1.38 billion from P983 million the previous year. Empire East, which focuses on transit-oriented, township and mixed-use developments, nearly doubled its net income to P50.32 million in the first quarter compared with P27.74 million a year ago. -via Philippine Star
Posted on: Thu, 11 Jul 2013 08:15:26 +0000
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