The Villar group of companies is allotting P175 billion in capital expenditures for the next three years, as it continues to grow its various businesses on the back of a strong economy.
Villar Group founder Manuel Villar Jr. said about 60 percent of the total capital spending will be earmarked for real estate development, while over 35 percent for its leasing and retail business.
Villar said the group would spend P50 billion next year for the development of more shopping malls and residential projects, and for expansion of its home improvement, supermarket, bakeshop and coffee shop businesses.
“We are very bullish in the coming year as we take advantage of the various collaborations among our companies in addition to the sustained sound Philippine macroeconomic fundamentals,” he said.
Villar said Vista Land & Lifescapes would put up malls and residential projects in the countryside, while All Value Holdings Corporation aims to more than double the branches of Coffee Project to 45 to 50 next year.
He added branches of All Day convenience stores are targeted to reach 100 next year from the current 72 outlets, All Day supermarkets to 26 branches from 13 this year, and All Home from 26 to 28 depots next year from the current 16 branches.
Villar said it also aims to grow Georgia Academy from three schools to 13 next year to serve the growing needs of Vista Land’s residential developments,
The Villar Group will also expand Golden Haven Memorial Park by doubling the number of locations from the current 14 to around 28.
Vista Land expects to continue posting double-digit revenue and profit growth, as it aggressively expands in line with its goal to become an integrated mixed-use developer by 2020.
Villar is confident its core residential business will hit 12 to 15-percent growth a year, while the leasing business through malls will be growing at a more rapid pace of 22 to 25 percent over the next three years.
“Our goal is to transform this housing developer into an integrated mixed-use developer,” he told reporters. “We will be a mixed-use developer like Ayala, SM, Megaworld. We hope to be in that league after a while, in three years,” he added.
Villar said its residential business is further expanding to new cities and municipalities in the country, while malls and office buildings are also rapidly being rolled out, particularly in areas where the company has already developed healthy communities.
“Right now, we have 72 commercial assets consisting of 22 malls, seven office buildings and 50 community malls and other retail formats. Our malls alone will be increased to 60 in three years,” he said.