Cancellations rose by double-digits at RLC

The property arm of the Gokongwei group that rate of residential project cancellations stood at the double-digit mark amid a global financial crisis.

Frederick Go, Robinsons Land Corp. (RLC) president and chief operating officer, said the cancellation rate of orders for residential units ranged from 10 percent to 15 percent for its fiscal year ending September 2008.

“We have a little sales from overseas. It’s only 5 percent. We are largely reliant on the domestic sales. I would think that is a major reason why our cancellation has not accelerated,” Go told reporters.

The company’s net income rose 29 percent to P3.15 billion for its fiscal year ending september 2008 due to the 26-percent improvement in its revenues.

It ended the year with P11.18 billion in revenues, as rental and sales grew 35 percent.

Of the total revenues, the company’s commercial centers division contributed 33 percent to P3.7 billion.

The office building division’s revenues increased 24 percent to P883 million, while the hostels division reported revenues of P1.14 billion, up 3 percent from P1.11 billion previously.

The housing and land development division had flat sales at P704 million.

The property company recently entered the affordable hotels arena through its Go Hotel, which targets businessmen and backpackers. RLC said the hotels would be located within its mixed-use developments and some can be built beside some of Robinson’s 23 malls nationwide or within an RLC office building.

Depending on market demand, some of these hotels may be stand-alone buildings, the real estate firm said.

Go Hotels would tie up with sister company Cebu Pacific Air, as RLC plans to build the hotels where the airline operates. This would “create synergy” between the two businesses by offering affordable packages to clients. — Chino S. Leyco, Manila Times