POPI takes lead in real estate logistics, industrial estates dev
Prime Orion Philippines Inc. (POPI) is strengthening its position not only in retail, but in the real estate logistics and industrial sector as well. Capitalizing on the Philippines’ robust economy, POPI further expanded its key business interests and streamlined processes in 2017, to improve on overall profitability and sustainability.
In addition to major facility improvements to its flagship estate Tutuban, POPI continued to refine its financial and resource strategies to increase profit margins. This has resulted in a significant rise in net income to P18.6 million in 2017 from a net loss of P414.9 million in the previous year. Consolidated operating expenses were also down by nearly half, from P1.2 billion in 2016 to only P693 million in 2017.
POPI recently acquired a majority stake in Laguna Technopark Inc. (LTI), a prime developer of real estate logistics and industrial parks in the Philippines. LTI manages the 460-hectare Laguna Technopark in Santa Rosa and Biñan and 135-hectare Cavite Technopark in the municipality of Naic.
“With the Philippines continuously attracting more foreign and local investments in the manufacturing sector, and with LTI’s parks serving as the preferred location for global firms, we plan to expand our parks in the CALABARZON region, and to develop a strong presence in the Central Luzon and VisMin regions as well,” said POPI president Rowena Tomeldan.
To boost its logistics business, POPI maximized the value of its 14-hectare Lepanto property in Calamba, Laguna by shifting Lepanto Ceramics’ focus from tile manufacturing to real estate warehouse operations. The company upgraded the common areas of its Lepanto Industrial Complex, initiated a phased rehabilitation program, and converted formerly non-leasable areas into leasable spaces.
In the midst of all the expansion and development, Tutuban remains the symbol of POPI’s transformation. POPI recently completed the refurbishment of the Tutuban railway station building into a model for adaptive reuse of a built heritage site. Major facility upgrades, the re-zoning of the mall, and the introduction of unique retail and wholesale concepts, all enabled the company to improve on profit margins for the year.
The redevelopment of Tutuban Center will also allow it to capitalize on the North-South Railway Project of the Philippine National Railways. Tutuban will be at the center of the North Line, South Line and LRT2 West rail projects, presenting the group with a unique opportunity to transform Tutuban into an integrated mixed-use development with retail, logistics, offices and other support services. This is in line with parent Ayala Land’s commitment to develop sustainable mixed-use estates across the country that are centers of growth, connectivity and sustainability.
In all of its development plans, POPI is following a sustainability roadmap that accounts for the company’s impact on the community and the environment.
“We have aligned our sustainability strategies with our parent company Ayala Land’s four-pillar approach to sustainability. These include growing our local economy through inclusive economic strategies; operating in a more eco-efficient manner; heightening our focus on pedestrian and transit connectivity; and improving the site resilience of our assets against disasters and other major risks,” said Tomeldan.
“In a short span of time, Prime Orion Philippines has transitioned into a highly-diversified company with a balanced portfolio focused on real estate logistics, mall operations and industrial development. We will continue to be driven by a cohesive strategy and an efficient structure as we make great strides toward becoming a stronger and more sustainable company,” she added.