DMCI Project Developers, Inc. (DMCI Homes) has set aside P18.6 billion for this year’s development and land acquisitions as it plans to build new formats for projects in acquired properties in Batangas, Bulacan, Laguna, and Pampanga, it said on Tuesday.
In a regulatory filing, Consunji-led DMCI Holdings, Inc. said its real estate subsidiary’s capital expenditure for 2023 will be higher by 18% than the P15.8 billion allotted in the previous year.
This year, DMCI Homes is planning to develop leisure, condotel and township projects after recording a 49% increase in its Luzon land bank to 96.9 hectares from 65.1 hectares the previous year.
The mid-segment property developer’s first leisure project will be Solmera Coast, a condotel set to launch this month in San Juan, Batangas.
“We recognized a demand for leisure properties and saw it as an opportunity to expand our product line. By offering quality and best value in this market, we hope to duplicate the success of our core residential line,” DMCI Homes President Alfredo R. Austria said in a statement.
The Asian tropical-inspired condotel project will be under the company’s DMCI Homes Leisure Residences segment and is expected to launch this month.
Under the condotel format, the condominium units will be owned by individual investors who will then rent out their units to guests, the company said.
“This business model allows the company to generate revenues from both the sale and rental of the units,” it said. “Buyers, in turn, can use the unit as a vacation home and receive a share in the rental revenue, which can help offset the cost of ownership.”
DMCI Homes is also set to launch a Japanese-inspired nature park in Laguna and a mountain resort in Benguet, under its leisure brand. It has yet to disclose details of the project.
“DMCI Homes Leisure Residences is for buyers who want to invest in premium properties that provide one-of-a-kind experiences and attractive returns,” Mr. Austria said.
In the first quarter, DMCI Homes’ capital spending reached P4.2 billion, a 27% rise from the P3.3 billion the previous year, which was mostly allotted for project development.
During the quarter, the company posted a 20% decline in net income to P1.16 billion from P1.45 billion in the same period last year.
Revenues fell by 18% to P4.85 billion from P5.95 billion due to higher sales cancellations and fewer prior-year sales that qualified for recognition.
DMCI Holdings has investments engaged in construction, real estate, coal and nickel mining, power generation, and water distribution. Its shares fell by 0.41% or four centavos to P9.67 apiece on Tuesday. — Adrian H. Halili