Empire East Land Holdings Inc., the low- to middle-income housing subsidiary of Megaworld Corporation, is allotting at least P25 billion for capital expenditures over the next four to five years.

During the firm’s annual stockholders’ meeting, Empire East President and CEO Anthony Charlemagne C. Yu said the capex “underscores our confidence in the Philippine market, rich with opportunities for expansion.”

Empire East is presently engaged in the development and marketing of mid-cost housing projects in the form of condominium communities, subdivision lots and house and lot packages, and commercial units to a limited extent. 

The Company also leases out commercial and industrial properties. Its core products are mid- to high-rise condominium towers within Metro Manila up to single-detached homes and house-and-lot packages in progressive suburban areas.

Yu noted that Empire East has close to P8.5 billion in trade receivables “expected to be collected in due time” and possesses “426 hectares of land and remain open to acquiring more properties for development, ensuring sufficient projects for the next five to seven years.”

“The company is constructing 11 towers as of December 31, 2023, and will commence construction on four more—totaling 15 towers in simultaneous construction,” he added. 

In 2023, the reservation sales of Empire East amounted to nearly P24 billion, marking a 41 percent year-on-year increase from P17 billion in 2022.

Meanwhile, in response to concerns over inflation and interest rates, Yu said that, “In so far as the Philippine inflation situation is concerned I wouldn't say that there is high inflationary pressure. At best there may be moderate inflationary pressure.”

“The inflation rate for April 2024 was reported 3.8 percent slightly up from 3.7 percent in March of 2024. There is actually a significant decrease from the high inflation rates seen in 2023, where rates hovered around six to 8 percent,” he said.

Yu pointed out that, “the Philippine government and Bangko Sentral ng Pilipinas are actively monitoring the situation and adjusting monetary policies in order to stabilize the economy and control inflation. 

“So, overall, while inflation is present, it is relatively controlled compared to previous years, allowing for optimism about economic stability. And remember, real property is a very, very good hedge against inflation,” he concluded.