Robinsons unit eyes P1.7B in condo sales

Robinsons Communities, the middle-income residential brand of Gokongwei-led property developer Robinsons Land Corp., is looking at booking P1.7 billion in sales for an eight-tower mid-rise project in Parañaque. Robinsons Land, meanwhile, will spend P9 billion this year, up from P8 billion last year, and may put up a real estate investment trust (REIT), the firm’s president said on Monday. The Escalades South Metro is the biggest project for Robinsons Communities so far. Robinsons Communities plans to launch up to three more projects this year. "We are looking at a project life of maybe over six years [for the Escalades]. But of course that is dependent on the actual sales take-up," Christopher G. Narciso, vice-president for operations and special projects of Robinsons Communities, told reporters. Units at Escalades South Metro, which is near the South Interchange in Sucat, cost P1.1-2.4 million for a 20-square-meter (sq. m.) studio unit, 27-sq. m. one-bedroom or 45-sq. m. unit, and two-bedroom units. Each tower will have 11 floors, with 12 units each. Escalades South Metro is the eighth project of Robinsons Communities, following the Escalades at 20th Avenue in Cubao, Woods-ville Mansions in Parañaque, The Wellington Courtyard in Tagaytay, Gateway Garden Ridge in Mandaluyong, Bloomfields in Davao and Tagaytay, and Blue Coast Residences in Cebu. Meanwhile, Frederick D. Go, president and chief operating officer of Robinsons Land, told reporters spending this year would be "roughly around P8 billion-P9 billion." The Gokongwei firm is looking at taking advantage of the REIT law. "Technically, we have three asset classes that fall under the REIT space — the malls, the offices and the hotels... anything that has recurring income is a [real estate investment trust] candidate," Go said. A real estate investment trust is a listed corporation that invests in income-producing real estate assets such as apartments, office buildings and warehouses. A bill that lapsed into law last December gives tax perks to REIT companies. Shares of Robinsons Land rose by 25 centavos to P14.25 apiece on Monday. — Neil Jerome C. Morales, BusinessWorld