Thursday, May 28, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
DAVAO CITY — RJP Realty Development Corp., the developer proposing to build the "Samal Highlands Garden Resort" here, is negotiating with three banks to obtain P300 million required to complete the upscale residential project.
Lemuel Roy R. Podador, company chairman and chief executive officer, said negotiations with Union Bank were in the "finishing touches" while those with Land Bank of the Philippines and United Coconut Planters Bank were still "in the process." The local branches of the banks here, however, would not comment on the status of RJP’s applications.
Mr. Podador wants to obtain the loan in tranches depending on the development of the three-phase project. "We have to do it phase by phase depending on the development on the ground," he said.
While banks have become stricter because of the global financial crisis, Mr. Podador claimed banks he has been negotiating with have been "good" to him because of his track record as housing developer in the last 15 years.
The company said it has already spent about P100 million out of a planned P800 million investment in the area, with the remaining amount to come from the banks and money generated from advanced sales of lots.
Ramon L. Ortiz, manager of the project, said the company has also finalized its in-house financing schedule for buyers.
Buyers, he said, will have to pay a 9% interest for a five-year schedule, 10.25% for a 10 years, and 10.75% for a 15 years. However, the company will also allow the buyers to let banks finance loans to be used in buying housing units. The project’s smallest lot costs P3.5 million.
"We are very flexible," Mr. Podador said, pointing out that the company will return the P20,000 reservation fee if a buyer withdraws from the project.
Mr. Podador said about 40% of the 119 lots in the project’s first phase, the Emilia Garden Residences, have been sold.
"I expect that the remaining lots will be sold before the end of the year," he said, pointing out that some of the buyers were doctors and other medical professionals.
Earlier, Dr. Jonathan A. Alegre, company president, said RJP would showcase the project to Filipino communities in the US.
The second phase of the project, dubbed Terazzas de San Isidro Ridge Lot and Villas, has started, Mr. Podador said. This phase will have bigger villas, although buyers are restricted to developing only 25% of their lots for their houses, which could not go beyond two floors.
The last phase of the project will be the Costa de Azure Beachfront whose main feature is a medical tourism complex. Company officials have not yet disclosed specifications. Mr. Podador said Manila-based planners have yet to finish the blueprint for the complex.
The last phase will be the San Isidro Cove Marina and Yacht Club, which will have various amenities including a floating restaurant. Another attraction of the project is the 300-meter zipline and the one-hectare black mangrove plantation now supervised by the Department of the Environment and Natural Resources. — Carmelito Q. Francisco