MANILA, Philippines — Gokongwei-led real estate developer Robinsons Land Corp. (RLC) is preparing to spend as much as P125 billion over the next five years to fund initiatives that will expand and diversify its investment portfolio.
RLC is expected to invest between P100 billion and P125 billion to support its Vision 5-25-50 roadmap, or about P20 billion to P25 billion annually.
“Based on current computations where historically, our capex has been in the P20 billion to P25 billion range. I guess it would still be the same, except that previously, when we did the P20 billion to P25 billion capex, 20 percent was allocated for the purchase of land,” RLC chief financial officer Kerwin Max Tan said.
“As we have the land bank in place and potentially adding some few more, I think more of that capex will be allocated to project development,” he said.
Tan said RLC has internally generated funds to finance the company’s capex, which can also be supported by debt.
“And if ever we do undertake debt, we ensure that the yields are higher than the prevailing interest rates,” he said.
RLC recently unveiled its Vision 5-25-50 roadmap that aims to deliver P25 billion in net income by its 50th anniversary in 2030.
RLC president and CEO Mybelle Aragon-GoBio said the company is looking at a compound annual growth rate of 12 percent to reach its profit target by 2030.
Under the roadmap, RLC has lined up strategic initiatives that include expanding and diversifying it investment portfolio, unlocking capital through active asset monetization, elevating offerings through premiumization, forging high-impact strategic partnerships, as well as enhancing customer experience through new business streams.
The company has set an aggressive expansion that seeks to increase mall gross leasable area (GLA) by 50 percent, office space by 50 percent, hotel room keys by 25 percent and double logistics capacity by 2030.
For its malls, RLC targets to add 14 new malls in its portfolio to bring its mall network to 69 by 2030.
Robinsons Malls is the second largest mall operator in the country with 55 malls nationwide at present, nine within Metro Manila and 46 in other areas.
Its malls enjoy a 93-percent total occupancy rate, with more than 8,700 retailers.