Eton also plans to spend Php 9 billion for expansions and new projects in 2015.
Lucio Tan Group’s real estate arm Eton Properties Philippines, Inc. recently announced a net income of Php 119.86 million, 14% more than their 2013 net income of Php 105.07 million.
Because the company’s primary focus the previous year was project delivery and completion, gross revenues were at Php 2.28 billion, a 38% drop from 2013. Real estate sales in 2014 also decreased by 52% from 2013.
These decreases were expected as part of their strategy to 'step back' in 2014, according to Eton Properties chairman Lucio Tan. "Having grown considerably in the past years, 2014 was the right time to take stock of our operations and assess our journey to growth. In doing so, we not only identified our limitations and constraints but also discovered our blocks of strength, which we built on to establish and fortify our pillars of growth," he explained in a statement.
According to Eton, their sales revenues were supported by rental income, which experienced an upsurge of 65% to reach Php 740 million because of take-up of office spaces in Cyberpod Centris in Quezon City and Eton Cyberpod Corinthian in Ortigas Center. The brand also increased their leasable space by 69% in 2014 with the launch of Cyberpod Centris Three.
Also completed last year was 8 Adriatico, a residential project in Manila, while developments like 68 Roces and West Wing Villas at North Belton Communities both in Quezon City; West Wing Residences, TierraBela and Village Walk at Eton City in Sta. Rosa, Laguna; and Eton Tower Makati were ongoing.
“We believe that the real estate market will remain strong in the segments where Eton operates, and that there is room for us to pursue its expansion plans beginning 2015,” Eton Properties deputy chief operating officer Josefino Lucas said.
Eton Properties also discussed plans for 2015, which include a high-rise residential condo project to rise in Eton WestEnd Square in Makati; three office towers, and a boutique mall. The 12-hectare mixed-use development Eton Centris in Quezon City will also see the construction of the brand’s fifth BPO office building, while a sixth will be located in Ortigas Center. To accomplish these projects, Eton is spending Php 9 billion in 2015 – originally Php 4.3 billion as announced in 2014 – and a total of Php 28 billion in the next five years.
“We are confident that our rental operations will remain strong in 2015. We are experiencing high occupancy rates in our office buildings given the strong demand from the outsourcing industry and we see this trend continuing,” Lucas said.