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Thursday, October 19, 2017

Anchor Land raises capex to P8 B sets provincial expansion

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By James A. Loyola

 

Anchor Land Holdings Inc. is allotting P8 billion for capital expenditures in 2017, 60 percent more than last year’s P5 billion, as it expands to Davao and diversifies into beach resorts and warehousing.

In an interview after the firm’s annual stockholders’ meeting, Anchorland President Steve Li said they have acquired beachfront properties in Boracay (6,000 square meters) and Coron, Palawan (3,000 sq.m.) earlier this year.

“We are in the design stage and, most likely, we will start with the construction by next year,” said Li, noting that “the tourism industry is really a sunshine industry, we have seen a lot of foreign tourists are interested to come over.”

He added that, “I went to Boracay a couple of times. It’s just so surprising that it’s really packed. Even when I was travelling in Asian countries almost all people are asking about the Philippines in particular Boracay and Coron.”

Li said the “significant increase” in Anchorland’s capex this year is also due to “big projects like Anchor Grandsuites and the company’s corporate office… We have quite big allocation for the development of these big projects.”

Part of the capex will also be used for the construction of a residential project in Davao, the company’s first in Mindanao. “It’s a twin tower development right across the Ateneo campus. The Peak Parksuites will be a residential condominium with some commercial component on the ground floor,” Li said.

The capex will also fund the construction of a 3,000-unit bed-spacing project called Cosmo Suites in Pasay City and a warehouse project called the Logistics Center in Binondo.

“One of the considerations in bedspacing is to improve the lives of the working class. Instead of spending like 3-4 hours in the travelling time, we try to put it near the workplace and by school space,” said Li.

The tower is set to be functional by 2020. The company is also aiming to grow its recurring income to about 15 percent to 20 percent of total profit by 2020 and Li said they are on track in hitting that goal.

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