PHILIPPINE REAL ESTATE and RELATED NEWS in and around the country . . .

Ayala Land firms up foray into cheap housing via new unit

Posted on August 31, 2011 10:52:48 PM [ BusinessWorld Online ]

PROPERTY DEVELOPER Ayala Land, Inc. has moved to formalize its foray into socialized housing, yesterday announcing the creation of a new subsidiary that will undertake its first project in Cavite.

Ayala Land said in a filing with the Securities and Exchange Commission dated Aug. 26 that its board has approved the creation of a fifth residential brand that will offer house and lot packages for P400,00 and below.

“The projects under this new brand will be pursued via South Maya Ventures Corp., a separate organization from the company’s other existing subsidiaries Alveo Land Corp., Avida Land Corp., and Amaia Land Corp.,” the filing read.

These other subsidiaries operate residential brands ranging from luxury units to mass housing.

This, after Ayala Land expressed last month its desire to fill a 3-million-unit housing backlog in the country via socialized housing, a segment it had described as “hugely underrated.”

The developer had said the brand for this division would be named Buena Vida.

Ayala Land went on to disclose that its new subsidary will launch “its first project in General Trias, Cavite, within the last quarter of the year on a 10-hectare lot currently owned by the company.”

Officials had earlier said the project would comprise of units measuring 20 to 25 square-meters (sq.m) on a 50- to 60-sq.m lot.

In a related development, Ayala Land disclosed in the same document that its board has decided to declare a cash dividend worth seven centavos per share for the second semester ending Dec. 31.

The dividend will be payable on Oct. 5 for shares on record as of Sept. 20.

Ayala Land’s first-half net profit rose 35% from year-ago levels due to double-digit growth in real estate sales and office and commercial rents, the developer said in earlier reports.

Earnings from real estate and hotel operations, which accounted for the bulk of group revenue, increased 15% to P19.99 billion.

The company started construction on 6,625 residential units in the period. The firm, however, has hesitated on plans to put up a real estate investment trust.

Its share prices closed 0.89% higher at P15.94 apiece yesterday.

DMCI Homes to exceed targets in the next 2 years

August 31, 2011, 11:42pm [ Manila Bulletin Online ]

MANILA, Philippines — DMCI Holdings Inc. expects its housing subsidiary DMCI Project Developers Inc., which uses the brand name DMCI Homes, to post double digit sales growth and exceed targets this year and in 2012.

In an interview, DMCI president Isidro Consunji said he expects reservation sales to register a 22 percent growth in sales to P18 billion in 2011 from P14.7 billion last year.

“Our official target for sales reservation is P13 billion, but we will probably hit P17 to P18 billion. We exceeded our (first half) target,” said Consunji.

He notted that sales will be boosted by the launch of new projects. DMCI Homes has launched a project at the corner of E. Rodriguez and Tomas Morato in Quezon City and a mid-rise building project near the mall of Asia while two more will be launched later this year.

"We expect to grow our sales reservation between 10 to 20 percent every year. We targeted P13 billion, we'll probably hit P18 billion this year. We target P20 billion next year, we'll probably hit P22 billion," Consunji said. For the first half of 2011, DMCI Homes experienced an increase in sales and reservation of 45 percent from P6.9 billion in the first half of 2010 to P10 billion in the first semester of 2011.

Increasing demand for DMCI housing units coming mainly from new projects: La Verti Residences in Taft, Pasay City; the Redwoods in Fairview, Novaliches; Siena Park in Bicutan Paranaque and Stellar Place in Quezon City pushed marketing sales to new heights.

Moreover, increased take up from existing projects East Raya and Magnolia Place also added to the growth in sales and reservations.

DMCI Homes reported that sales and reservations last year expanded to P14.7 billion, up by 69 percent from the P8.7 billion in 2009 due to a combination of a growing demand for near-city dwelling units and the value the DMCI housing unit brings.

The global credit crunch in 2008 and 2009 also helped depress the 2009 results so 2010 results were coming off a lower base. (JAL)

BOI grants tax perks to Makati apartel

Published : Thursday, September 01, 2011 00:00 [ ]

THE Board of Investments (BOI) has granted tax perks to a property developer for a tourism facility in Makati City.

In a statement, the BOI said it approved the P336.7 million Citadines Salcedo Makati Project of Valero Prime Land Realty Development Corp.

The project involves the development of 940 square meters of land and the construction of a 37-story, 212-room apartment hotel.

The proposed tourism facility will be located along Valero Street in Salcedo Village.

“This will expand the availability of tourist facilities in the country’s business capital and is in line with the country’s goal of attracting six million tourist arrivals by 2016,” Cristino Panlilio, BOI managing head said.

The Department of Tourism last April endorsed the project as an apartel.

According to DOT regulations, an apartel is any building or edifice containing several independent and furnished or semi-furnished apartments, regularly leased to tourists and travelers for dwelling on a more or less long-term basis, offering basic services to its tenants similar to hotels and with a minimum of 25 lettable apartments, each replete with residential amenities.

Each unit at Citadines will have living/dining areas, furnished kitchens and laundry areas. Room amenities will come with Internet connection and a DVD player. Other building amenities include a health and fitness center, swimming pool, tour desk, guest activity/recreation area, room service, gift shop, business center and meeting/conference rooms.

Target clients are business travelers, as well as foreign and domestic tourists on a daily, weekly or monthly basis. Start of commercial operation is slated in June 2013 with a labor requirement of 154 people.

Landco grows sales by a fifth, expects to hit full-year target

Published : Thursday, September 01, 2011 00:00
[ ]

LANDCO Pacific Corp. reported brisk sales in the first six months of the year after announcing it would spend a billion pesos for its existing projects and for new developments in 2011.

In a statement, the leisure property developer said sales in the January to June period reached P1.21 billion, 19 percent higher than the P1.01 billion in the same six-month period last year.

“We had a very good start at the first quarter of 2011. Sales continue to be brisk midway through the second half of the year. If this trend continues, we expect to achieve our sales targets at year’s end,” said Alfred Xerez-Burgos 3rd, Landco president and chief executive.

Sales of Tribeca Private Residences in Sucat, Muntinlupa surged 158 percent, while that of Hacienda Escudero advanced by 78 percent. WoodGrove Park in San Fernando, Pampanga enjoyed a 70-percent sales hike, while The Courtyard at Lakewood Golf Estates in Cabanatuan City and Playa Laiya in San Juan, Batangas jumped 35 percent and 20 percent, respectively.

“Products and services related to leisure, health and relaxation are selling very well, showing that the market is putting a premium on quality of life. Leisure is necessary to remain healthy and keep a sense of balance in one´s life,” Xerez-Burgos said.

The real estate company’s sales in 2010 amounted to P2.2 billion, with P810 million coming from Urban and Visayas-Mindanao Communities, P714 million from Hometown Communities and P675 million from Leisure Communities.

Finance in advanced negotiations to sell FTI

by Elaine R. Alanguilan
[ ] August 30, 2011

The government is close to clinching a deal with a developer over the privatization of the 103-hectare property owned Food Terminals Inc. in Taguig City, Finance Undersecretary John Philip Sevilla said over the weekend.

“Yes,” Sevilla said when asked if the transaction was in the advanced stages.

“It would happen this year.”

He declined to name the company when asked by reporters.

The previous administration wanted to sell the property at a minimum bid price of P13 billion. The bidding at that time failed twice due to lack of investor interest amid poor market conditions. This prompted the previous government to lower the minimum bid price to between P7 billion and P9 billion.

Sevilla, however, said the government would stick to the original P13-billion floor price for the property when the new administration announced plans to pursue the privatization.

Several big developers such as Ayala Land Inc., SM Group, Robinsons Land Corp., Megaworld Corp. and Filinvest Land Inc. have signified their interest to bid for the property.

“Just wait,” Sevilla said, when asked if the P13-billion floor price was met.

Sevilla said earlier the government was pursuing the privatization of FTI later this year to help boost economic activity through new private investments.

Weaker public spending, in addition to sluggish global trade, has limited the economy’s growth in the first three months of the year to 4.9 percent.

The government is hoping that investments on the complex’s development would generate economic activity, including much-needed new jobs.

The 103-hectare FTI complex is being sold on an as is, where is basis.

It is the biggest remaining block of undeveloped property in the vicinity of the airport and the Bonifacio Global City, whose earlier privatization made it among the premier commercial and business districts in the country.

“In terms of raising revenues, the privatization of FTI is not urgent but in terms of boosting the economy, yes, it is important that it is privatized this year. About 75 percent of the property is currently idle…somebody else could be investing there,” Sevilla said in an earlier interview.

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