Monday, July 3, 2017
Anchor Land To Spend P8 Billion This Year, Eyes Boracay And Palawan Tourism Projects
Anchor Land Holdings Inc. (ALHI), a boutique-property developer, is set to spend P8 billion this year into capital expenditures. The amount is more than half from last year’s P5-billion capital expenditures. Anchor Land will be using this to develop 3 projects in the cities of Davao, Manila and Pasay. They are also while conceptualizing resorts in its beach-front properties in Boracay and Coron in Palawan.
Steve Li, the company’s CEO, said the higher expenditures comes from the pipeline of projects the company had for this year. Among these, a 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. They’ve also been working on, Cosmo Suites in Pasay City which 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. “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 that the country showed a more affordable cost of living and travel expenses compared to other Asian countries.
Meanwhile, 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.