Rockwell Land adds P7 B to capex

Published December 11, 2018, 12:00 AM

by manilabulletin_admin

By James A. Loyola

Rockwell Land Corporation, the property development unit of the Lopez group, is allocating P7 billion out of its total retained earnings of P12.1 billion for capital expenditures.

rockwell land corp logo

In a disclosure to the Philippine Stock Exchange, the firm said its board of directors has approved the use of retained earnings for its capex from 2019 to 2021.

Rockwell has earmarked P14 billion for capital expenditures for 2018 and up to P45 billion for land acquisition over the next two years.

In an earlier interview, Rockwell Chief Finance Officer Ellen Almodiel said the P14 billion capex already includes some land acquisition aside from the construction costs.

Rockwell Senior Vice President for Business Development Davy Tan said that, while their core business remains in the higher middle income segment to the high end of the market, the company is ramping up its expansion into other segments such as affordable housing and hotels and resorts.

To do this, the firm intends to increase its land bank from 3 percent to 12 percent of its total assets by acquiring 64 hectares this year to add to its current land bank if 50 hectares. Next year, Rockwell will buy 220 hectares for a total acquisition of 284 hectares.

“Aside from properties we will be closing in Metro Manila, we are currently in advanced discussions for mixed-use projects in both the North and South of the Metro. We are very excited about this growth as it will allow us to introduce different products and share the Rockwell lifestyle to new markets,” said Tan.

The firm is also expanding its affordable housing market with the launch of a P5.8 billion project in Lipa, Batangas. The first phase of the project will generate P700 million, said Rockwell Senior Vice President for Residential Development Val Soliven.

Rockwell Senior Vice President for Hotel and Leisure Baldwin Chua said they are also looking for more land to acquire for hotel and integrated residential and resort developments.

He said they are targeting Boracay, El Nido, Siargao, Bohol, Cagayan de Oro and Puerto Princesa. This comes after the first resort development in Mactan, Cebu.

“We remain to be on the move with our newest development in Punta Engaño boasting of beach front living. The 5.3-hectare property will have over 200 residential units and a hotel that will serve the growing tourism industry,” said Rockwell President Nestor Padilla.