Wednesday, July 15, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
GEO-ESTATE Development Corp., the newly formed property firm led by former officials of Ayala Land, Inc. is planning to build a residential subdivision in Cavite following its maiden three-tower project in Makati.
In a briefing yesterday, Francisco H. Licuanan III, Geo-Estate chairman and chief executive officer, said the company would soon go into horizontal development, with Cavite as the site of the project, but declined to disclose other details.
"We have a couple [horizontal projects] on the drawing board, but we cannot give details yet ... It will be in the Mega Manila area," he said.
Mr. Licuanan, the founding president of Ayala Land, noted that Geo-Estate’s P8-billion project, The Beacon, continues to enjoy brisk sales despite the economic slump, with the first tower’s more than 1,000 units already sold out after being launched in 2007.
"The market never disappears... It just becomes smaller and more competitive," he said.
The Geo-estate executive added that The Beacon’s location, on the corner of Chino Roces and Arnaiz avenues in Makati, is one of its selling points. The project is close to hospitals, schools, and the Makati business district.
He also pointed out that the urban housing trend is heading toward condominium living amid the population boom which has resulted in congested roads and longer commutes.
Mr. Licuanan said 40% of the first tower’s units were bought by young professionals and about 30% by investors who plan to lease them.
"[We are targeting] the mid-income market because it is less volatile and [less] driven by speculation ... It is also the largest market," he said.
About 20% were bought by migrant workers, while the rest were bought by senior citizens from the suburbs south of Metro Manila who wish to have a residence in the city, Mr. Licuanan added.
The slowdown in remittances from overseas workers won’t affect Geo-Estate’s sales, he said, noting that the firm is focusing on the local market first and that low-skilled migrant workers is not the target market.
Mr. Licuanan said the first of The Beacon’s 44-storey condominium towers will be finished by 2011, while the second is scheduled for completion on 2013. He declined to give a timetable for the third one.
The project is a partnership with Rizal Commercial Banking Corp., which owns the one-hectare land on which the towers are being built, and EEI Corp., the project’s contractor.
Geo-Estate was incorporated in 2007 to engage in the management and marketing of horizontal and vertical real estate projects. Its president and chief operating officer is Miriam O. Katigbak, formerly head of the Ayala Malls group. — Don Gil K. Carreon
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