MANILA, Philippines -- Global-Estate Resorts Inc., the leisure property development arm of Alliance Global Group Inc. (AGI), expects to start posting annual profits of P1 billion to P2 billion within three years as it expects to book higher earnings from its massive tourism-oriented projects.
AGI president Kingson Sian told reporters last week the target, a significant increase from the P19.4-million net income posted in 2011, is “very do-able” as Global-Estate develops its land bank, of which 1,976 hectares are directly owned by the company.
“Starting next year, I think [Global-Estate Resorts] will have a bigger contribution,” Sian said. “Over time, the P1-billion to P2-billion net income is very do-able.”
He said the company has started to sell house lots and condominium units in Boracay Island, where its recently launched Boracay Newcoast project covers about 14% of the total land area of the popular tourist destination.
He said the company is selling house lots with prices ranging from P25,000 per square meter (sqm) to P50,000 per sqm while condominium units retail for about P150,000 per sqm, mirroring prices at the Fort Bonifacio area in Taguig City.
He said sales are coming from both local and foreign buyers. “Boracay is the No. 1 beach resort and it’s well known across Asia.”
Boracay Newcoast, along with the company’s Twin Lakes project in Tagaytay, would require investments of about P20 billion, Global-Estate said earlier.
The builder said revenues in the first quarter of 2012 rose 45% to P378.9 million while net income increased 47% to P56.9 million.
AGI paid P5 billion in 2010 to buy a 60% in Global-Estate, formerly known as Fil-Estate Land Inc. when it was controlled by the Sobrepeña family. AGI transformed the debt-ridden but landed company into a vehicle for tourism-related developments.
Global-Estate shares did not move at P1.70 each on Friday’s trading, giving it a market value of P14.3 billion.