Vol. XXII, No. 97 [ BusinessWorld Online ]
Tuesday, December 9, 2008 | MANILA, PHILIPPINES
BY DON GIL K. CARREON
MUNTINLUPA-BASED Woodridge Properties, Inc. will start developing two subdivisions and finish one more next year amid a gloomy outlook for the property sector due to the slowing global economy.
A model house from Woodridge Properties’
The mid-sized property developer expects to do better next year by targeting local entrepreneurs and seamen who have not been directly hit by the financial crisis in the US, company officials said.
In a telephone interview, Woodridge Properties Accounting Manager Jonathan M. Abao said the company seeks to start developing of a four-hectare property in Molino, Bacoor in Cavite and another five hectares along Zapote Road in Las Piñas into subdivisions for the mid-end market starting January.
Woodridge Properties also plans to finish developing its two-hectare property in Tagaytay, which is being marketed to high-end buyers, by the third quarter of 2009.
Mr. Abao said they expect strong sales next year even if property analysts have warned of slowing real estate demand from Filipino workers abroad.
"We are not as affected since most of our customers are either local entrepreneurs and seamen who have not been directly hit by the financial crisis in the US," he said.
He added that the 11-year-old company was looking for more locations in southern Luzon, especially in Cavite, that it can develop.
In a separate interview, Prince Christian R. Cruz, a senior economist of the realty research portal Global Property Guide, said smaller real estate developers will be in a worse position than their bigger counterparts.
"[The bigger companies] are better positioned to weather [the crisis] since their [projects] usually complement their other businesses," he pointed out.
Ramon Jose E. Aguirre, research manager of property consultancy firm Colliers International, shared the gloomy outlook for small realty companies next year. "The crisis abroad that hampers domestic demand may hurt mom-and-pop developers more than seasoned ones," he said in an interview.
Unlike seasoned developers, he added, new players are not backed by brand equity, reputation, strong history and credit lines.
Mr. Abao said Woodridge Properties plans to fund the projects by selling shares and borrowing from banks. They have yet to decide on the cost of the projects, he added.
On Friday, the Securities and Exchange Commission approved a company plan to hike its capital 44 times to P900 million.
Stockholders Ernesto T. Matugas, Filomena U. Matugas, Mark Ernest U. Matugas, Lani Jean U. Matugas. Ernesto U. Matugas, Jr., Samuel J. Uy, Beverly P. Uy and Rudy U. Jonem subscribed to almost three-fifths of the capital increase.
The group acquired two-fifths of the share hike by converting their advances to Woodridge Properties into equity and through their stock dividends.
The group will pay for the balance using cash, only P4 million had been paid, documents filed with the commission showed.
Lira D. Despi, marketing head of Woodridge Properties, said the company would build executive townhouses with 80 units, and two 15-storey residential buildings along Zapote Road, called Woodridge City.
Townhouses will also be built in Molino, Bacoor. She said the projects would be finished after one-and-a-half years.
Ms. Despi noted that aside from these projects, Woodridge Properties has acquired a 13-hectare property in Cavite, which it also plans to develop next year.
Woodridge Properties’ past projects include Woodwinds, Krause Park and Melrose Park in Molino, Bacoor; Teresa Park and Hamilton Heights in Las Piñas City; Villa Isabel in Dasmariñas, Cavite; and Garden City 3 in Sucat, Parañaque City.
