Rockwell Land goes into hotel and leisure business

Rockwell Land Inc. is going into hotel and leisure development this year, earmarking P10 billion in capital expenditures that will also fund residential projects and the acquisition of additional land.

 

The company will launch the Aruga serviced apartments in Rockwell for businessmen, professionals and individual travelers who need a place to stay in the Makati Central Business District, president and CEO Nestor J. Padillla told reporters at the sidelines of Rockwell Land's annual stockholders' meeting on Wednesday. 

 

“The Aruga serviced apartments at Edades will be the first of Rockwell’s several ventures into hotel and leisure, which we plan to expand to different locations in the country,” Padilla said.

 

Aruga will occupy six floors of the residential developments Edades Tower and Garden Villas in Rockwell. The company expects to have 300 units of serviced apartments in the next three to five years.

 

As profit guidance for 2014, Padillla said Rockwell Land expects to grow net income by 16 to 25 percent from P1.4 billion last year. 

 

Revenues are expected to grow 22 percent to P9.5 billion from P7.8 billion in the same comparable period.

 

Total revenues will consist of 40 percent recurring business from 32 percent in 2013.

 

To strengthen its recurring income, the Lopez-owned property developer is constructing an office building with total leasable space of 60,000 square meters in Cebu.

 

The site in Cebu is called Proscenium, said Rockwell land chief finance Ellen Almodiel, noting the development was launched last month.

 

As a high-end development, Proscenium has total sales value of P5 billion as well as a residential component with total sales value of P4 billion, she said.

 

The third tower of Rockwell Business Center is now under construction and will be completed in the third quarter, while the 20-storey Lopez Tower will be completed in early 2015, the company said. – VS, GMA News