Torre Lorenzo sets P2 billion capex for 2021

MANILA, Philippines — Real estate developer Torre Lorenzo Development Corp. (TLDC) has set its capital expenditures at P2 billion this year, lower than its  yearly P3 billion capex.

However, the company is targeting to bring its capex level back to P3 billion by 2023.

Despite a lower capex, TLDC is taking a bullish view of the Philippine property market with plans to continuously expand outside Metro Manila as it hitches a ride on the growing economies in the provinces.

Asked about a possible REIT listing or an initial public offering in the future, TLDC president and CEO Tomas Lorenzo said these are all possibilities for the company.

“REIT is not impossible. We have rental properties which we can (put into a) REIT,” said Lorenzo.

A REIT is a stock corporation established principally for the purpose of owning income-generating real estate assets. It provides returns for investors derived from rental income of the underlying real estate asset.

It is also mandated by the REIT Act of 2009 to declare dividends to its shareholders.

The company also has a sizable land bank for future developments.

In the short term, the company is looking to turn over 3 Torre Lorenzo, The Residences at Torre Lorenzo Malate as well as launch a commercial space in the development.

Lorenzo said the company has been developing projects outside Metro Manila and reception has been strong. These are located in Batangas, Pampanga and Mindanao.

“Our Dusit Thani Residences in Davao is doing very well. These are five star amenities,” he said in an interview with The STAR.

The 1.7-hectare Dusit Thani Residences Davao is in Lanang and is Davao City’s first five-star residential and resort development.

In 2019, TLDC’s total booked sales amounted to P2.2 billion while total sales inventory value of projects reached P7.3 billion.

Year-on-year revenue growth reached 21 percent with five-year average at 47 percent.

TLDC is a real estate developer engaged in building communities that pursue niche markets and untapped demographic segments.

The company anticipates the needs of the emerging affluent communities and develops residential and leisure properties customized to address these changing needs.

Article Source: https://www.philstar.com/business/2021/06/13/2105019/torre-lorenzo-sets-p2-billion-capex-2021