DMCI Homes: Luzon land bank up 49%

DMCI Homes Inc., the midsegment property development arm of the Consunji Group, on Tuesday said its Luzon bank went up by 49 percent to 96.9 hectares from 65.1 hectares after acquiring properties in Batangas, Bulacan, Laguna and Pampanga.

With the expanded land bank, DMCI Homes plans to develop new formats such as leisure, condotel and township projects, the company said.

“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.

The company said Solmera Coast is scheduled for launch this month. It is an Asian tropical-inspired condotel project in San Juan, Batangas under the DMCI Homes Leisure Residences sub-brand.

Under the condotel format, the condominium units will be owned by individual investors, who will then rent out their units to guests through DMCI Homes Leisure Residences.

This business model allows the company to generate revenues from both the sale and rental of the units.

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 Leisure Residences is for buyers who want to invest in premium properties that provide one-of-a-kind experiences and attractive returns,” Austria said.

Aside from Solmera Coast, the leisure sub-brand will include a Japanese-inspired nature park in Laguna and a mountain resort in Benguet.

DMCI Homes has earmarked

P18.6 billion for its capital expenditure this year, mainly for project development and land acquisitions.

The said amount is an 18 percent increase from the previous year’s P15.8 billion.

From January to March, its capital spending rose by 27 percent to P4.2 billion from P3.3 billion, which mostly went to project development.

The company is expected to face headwinds this year as high interest rates and hybrid work models temper demand. Inflated raw materials cost could also erode their margins.

“To navigate these challenges, we will explore new product formats, such as leisure and premium offerings. We will also employ value engineering techniques to identify cost-efficient options, while exploring alternative business models, such