Filinvest Development Corp., the holding firm of the Gotianun group, said it has allotted P25 billion in capital spending this year to drive growth.
The spending budget is 28 percent lower than last year’s allocation of P35 billion.
Rhoda A. Huang, company president and CEO, said this is part of the medium-term goal targeting growth averaging 20 percent.
She said most of the capex comes from internally generated funds and from debt. Appropriately timing the proposed preferred share offering and its proceeds form part of the capex as well.
Huang explained FDC already has its capex this year appropriately allotted but wants to be opportunistic as events present themselves going forward.
Brian T. Lim, FDC treasurer and CFO, said the bulk of the spending center on the real estate business under Filinvest Land Inc., 15 percent for the group’s power projects, another 15 percent for FDC’s hospitality business and the remaining 10 percent for other businesses and the digitalization program.
Lim said FDC is developing a 20-megawatt solar power facility in Misamis Oriental and still another 12-MW under construction in Cebu with FDC Utilities Corp.
FDC looks to beef up its portfolio of hotels that include Crimson Resort and Spa in Mactan, Cebu and Boracay, the Crimson Hotel in Alabang, Quest Hotel and Conference Centers in Cebu and Clark.
FDC is likewise building the 240-key Grafik Baguio, the latest brand under the FDC portfolio, eyed for opening by the first quarter next year even as Crimson Clark hotel is being renovated.
Ysmael Baysa, chief operations officer, said the group looks to consolidate the various enterprise resource plans into one as part of the digitalization program while enhancing the purchasing, project management and the management report, analysis and planning systems.
FDC earlier reported profits last year growing 46 percent to P12.1 billion from P8.3 billion in 2023.
