Vol. XXII, No. 66
Monday, October 27, 2008 | MANILA, PHILIPPINES
DAVAO CITY — The financial crunch has hardly affected property development in the Davao region with a major developer launching a 33-hectare project in the nearby Samal Island.
Alfred Xerez-Burgos Jr., president of Landco Pacific Corp., said over the weekend that pre-selling activities for his company’s project, Playa Azalea, indicated that the market remains bullish.
Playa Azalea is a joint venture project with Anflocor Management and Investment Corp. of the Floirendo family in the island city. Anflocor, which is traditionally into agribusiness and a major banana exporter, is also Ayala Land, Inc.’s partner in the Abreeza shopping mall and business park project in this city.
Despite opening 250 units for pre-selling only months ago, the project’s sales force has sold half. "The people who are attracted [to buy lots] here are those who have the capacity to pay," he said, adding most buyers got their lots on 24-month terms without interest.
Despite worries over the financial crisis emanating from abroad leading to a global economic meltdown, the high-end market in this city has continued to show interest in buying property, Mr. Xerez-Burgos said.
Francis V. Ceballos, executive vice-president, said Landco had initially appropriated P500 million for the project. Total company investments as well as equity from buyers will amount to between P3 billion to P5 billion in five years, he said.
Landco will first focus on developing the property’s beachfront to attract more buyers. "We are hoping we can sustain the interest of those who want to buy," he added.
Oscar D. Tabije, marketing manager for Playa Azalea, told BusinessWorld the company hopes to sell all 526 units in the project within the next three years. The company is also building a 200-room hotel as part of the development. — Carmelito Q. Francisco
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