Green property developer Italpinas Development Corp. plans to venture into horizontal development next year, its top executive said Monday.
IDC chairman and chief executive Romulo Nati said in an interview at the sidelines of the company’s annual stockholders meeting that aside from expanding its presence in Luzon and Mindanao, the company was also looking to add house-and-lot developments in its product offerings.
Nati did not disclose the planned site for the horizontal development but said this would involve economic housing with a price range of P800,000 to P1.8 million per unit.
“We think we can develop new concept for horizontal economic housing projects because at present there is not much differentiation in the market for this type of housing project,” Nati said.
Nati said the planned house-and-lot project would also have green and sustainable features.
The move to diversify its product offering is expected to increase the company’s profitability as sales recognition for house-and-lot developments is faster compared to condominium buildings.
Nati said the company would likely double its net income in 2019 to P240 million from P120 million in 2018 on strong real estate sales. As of September 2019, Italpinas sold more than 95 percent its residential units in its second major mixed-use condominium project―Citta Verde at Primavera City Phase 1 in uptown Cagayan de Oro City.
It also recently launched Citta Bella at Primavera City Phase 2 and opened up the residential units for sale to meet the increasing demand from valued customers.
The pre-selling of Miramonti Green Residences, the company’s third major project located in Sto. Tomas, Batangas, was also very encouraging, he said.
“To date, the combined revenues of these two condo projects have reached more than P1.451 billion,” Nati said.
The property firm plans to launch phase 3 of Citta Bella at Primavera City in 2020 which is expected to generate P1.2 billion in sales.
IDC president Jose Leviste III said the company was hoping to secure the regulatory approvals for the company’s planned P650 million-preferred shares offering this year.
The company filed with the Securities and Exchange Commission its application in June to sell up to 33.333 million preferred shares with an over-allotment option for another 10 million shares at P15 apiece.
The net proceeds from the planned preferred shares offering will be used to finance land acquisition and working capital requirements.