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DMCI Homes sets 5-year proposal to hike revenues

Business Mirror
Wednesday, 02 June 2010 22:07
Written by Miguel R. Camus / Reporter

THE real estate subsidiary of Consunji-led conglomerate DMCI Holdings Inc. is implementing a five-year plan starting next year which aims to double profits and revenues by 2016 as it focuses on the expected uptick in the property sector.

In a press briefing on Wednesday, DMCI Homes president Alfredo Austria said the property cycle is now in the early stages of recovery with demand seen to grow rooted in the middle-income market.

"We are still far from the peak. Today, interest rates are low and there is a lot of liquidity in the market If you have some money, [the real estate sector] is a good investment alternative," Austria said. He added the bulk of their clients are end-users, of which a good number are "repeat" buyers purchasing for children and extended families.

He said DMCI Homes may exceed an earlier projection pointing to P10.5 billion in booked sales this year, or about P1 billion better than 2009. Since it does not recognize revenues until a project is fully completed, the figure is an indicator for future earnings.

"As it's going right now, we are exceeding the target," Austria said.

He added DMCI Homes will enter new markets and will likely retool its portfolio, currently composed of middle-rise residential condominiums, to include more high-rise structures in the coming years.

"The target by the board is they want us to grow by 20 percent a year [starting 2011]. We really should think on how we are going to accomplish that," said the company executive.

The company launched three projects during the first quarter of the year, with at least five more in the second half of 2010. The company launched Cedar Crest, a medium-rise residential development in Taguig City; The Redwoods, a neo-Asian inspired residential village in Fairview, Quezon City; and the Iris Tower at the Tivoli Garden Residences, a high-rise garden community in Mandaluyong City.

To be launched are La Verti Residences, a twin high-rise tower located behind the Manila Adventist Hospital on Donada Street in Taft Avenue Pasay; Flair Towers which is a two-tower high-rise along Reliance corner Pines Street near Edsa; Sienna Park Residences, a medium-rise development in West Service Road, Bicutan, ParaƱaque City.

Also being planned is a medium-rise development in Visayas Avenue, Quezon City and another medium-rise property in Muntinlupa on a three-hectare property.

DMCI Homes, which has been building themed communities for the past 10 years, said its projects are priced lower by 40 percent compared with that of other developers. The bulk of the company's housing units has a selling price below P2.5 million.