Eton Properties Philippines, Inc. (EPPI), the real estate arm of the Lucio Tan Group, continued to expand its footprint in the real estate industry, increasing its recurring income from commercial and office developments.
In 2017, EPPI spent Php4 billion in capital expenditures, 14% higher than the Php3.5 billion spent in 2016, as development of West End Square in Makati City, Centris Cyberpod Five and expansion of Centris Walk in Quezon City went on full swing. The company also broke ground on several projects notably in Ortigas CBD in Pasig City with the construction of NXTower I, a 30-storey office building, and Eton City Square, a commercial strip in Eton City in Sta. Rosa, Laguna designed to complement the vibrant residential communities in the area.
EPPI’s management expressed confidence that expanding the company’s footprint, streamlining its operations, and strengthening its commitment to exceptional customer service will sustain the market’s interest in its various projects and steer the company forward.
EPPI likewise announced plans to explore new project formats to cater to emerging market needs. In the pipeline are pocket retail developments in Ortigas, Quezon City, and San Juan and a mixed-use commercial development along Roxas Boulevard. The company will also begin offering flexible co-working offices at the upcoming NXTower I in Ortgas CBD.
As it marked its tenth year of operations, Eton intensified its focus on its leasing business – a strategy to increase its recurring revenue stream. Consequently, rental revenue accounted for 60% of total revenues in 2017, growing 9% to Php1.4 billion from Php1.3 billion in 2016. Real estate sales, on the other hand, accounted for 36%, mostly driven by ready-for-occupancy residential units across its various developments.
The company ended the year with gross revenues of Php2.3 billion and net income of Php348 million.
Eton Properties is the real estate brand of the Lucio Tan Group, one of the biggest business conglomerates in the Philippines. Its foreign counterpart, Eton Properties Ltd, is an established real estate brand in Hong Kong and mainland China. With an extensive land bank in strategic locations all over the country, Eton specializes in high-end and mid-income high-rise and horizontal residential developments, office projects, commercial centers and mixed-use township developments.