ANCHOR Land Holdings Inc., a boutique-property developer, said it will spend P8 billion this year, more than half from last year’s P5-billion capital expenditures, as it pours funds to develop three projects in the cities of Davao, Manila and Pasay, while conceptualizing resorts in its beach-front properties in Boracay and Coron in Palawan.
Steve Li, the company’s CEO, said the higher expenditures is due to the pipeline of projects the company had for this year including its residential project in Davao City, the Logistics Center in Binondo, Manila and a dormitory-type development in Pasay City.
Li added the company has started bigger projects, such as the Anchor Grand Suites and the Conference Office, while Cosmo Suites in Pasay City will cater to transients and call-center workers with about 3,000 units up for sale. The tower will open by 2020.
“Instead of spending three to four hours of travel time, we try to put our development near the workplace and school areas,” Li said.
He added the company is also banking on the country’s tourism industry as it has property in two of the country’s most popular destinations. “Tourism industry is really a sunshine industry,” Li said at the sidelines of the company’s stockholders’ meeting on Thursday.
The rise in the number of foreigners coming over to the Philippines both for work and leisure reasons caught Anchor Land’s attention.
Li added the country showed a more affordable cost of living and travel expenses compared to other Asian countries.
“A lot of people try to explore and balance their life. They spend their time and budget for traveling and the Philippines is their destination,” Li said.
Li added both of Anchor Land’s projects in Boracay and Palawan are now in the conceptual and design stages, with construction most likely to start by 2018.
Anchor Land’s property in Boracay has a size of 6,000 square meters (sq m), while that in Palawan is about 3,000 sq m.
The two projects will increase the company’s recurring income, he said.
By 2020 the company’s target recurring income is 15 percent to 20 percent of the total revenues. Li said they are on track to hitting that goal.
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