Robinsons Land Corporation is spending P17 billion in 2016 to build new malls, condos, and office buildings, said Frederick Go, RLC president.
Go issued that "our capital expenditure is estimated at P16 to P17 billion for fiscal year 2016, excluding China."
In late October, RLC acquired 8.5 hectares in Chengdu, China for $200 million. The land has been set aside for residential development, according to the company.
Because of stiff competition in the residential sector, RLC has chosen to prioritize its shopping malls, hotels, and office projects, citing that 50 to 80 percent of its net income comes from recurring income.
Nonetheless, the company is expecting sales in its residential sector to contribute to its target capex. Go says that RLC will benefit from "significant contribution from residential business for 2016 because of new residential launches, including Westin Residences."
Located in the Ortigas business district, Westin Residences is pegged to generate P6 billion in sales. The mixed-use hotel and residential project has 500 rooms, and it is the first of its kind under the Westin brand in Southeast Asia.
RLC has also issued plans to open five new malls outside of the National Capital Region in 2016. On top of three existing malls slated for expansion, the new malls will broaden the developer's gross leasable area by 11 percent.
RLC earned P4.7 billion in net profit in 2014. The company has stated that it plans to double the figure in 2019.