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Moldex challenges the big boys

[ ] March 8, 2012

Despite what is perceived as the peak in vertical housing development, Moldex Realty Inc. (MRI) is challenging the property industry’s big boys in this segment,

The company is allotting P8 billion until 2013 for new projects, mostly for vertical development.

Rey Ignacio Diaz, president of MRI, said the company is eyeing P3 billion in sales this year, a 30 percent increase from 2011’s P2.3 billion.

Diaz said the company is undertaking five major projects this year that would contribute to the growth of the company.

MRI, the real estate and property arm of Moldex Group of Companies, is optimistic of this year’s prospects in the residential segment since the country still suffers a backlog of 1.2 million units, of which 70 percent are in Metro Manila. Of that portion, 40 percent are in the business districts and their fringes.

Diaz said this translates to about 200,000 units in backlog or the equivalent of 200 more buildings.

"There’s always a market. It depends on your market. It depends on the location because people look for accessibility. Pricing is only the second consideration," said Diaz.

MRI’s expertise is in the middle market. Diaz said MRI would be aggressive in its marketing campaign in a market where competition has been tough.

"The big players have flexed their muscles as can be seen in a lot of projects. We’ll give our brothers in the industry a good fight," Diaz said.

Diaz said the company grew 23 percent in 2011 fuelled by the completion of the first building of Moldex Residences Valenzuela, the company’s first mid-rise project in Valenzuela City; continued success of The Grand Towers on Pablo Ocampo St. (formerly Vito Cruz) in Manila, which have sold most of its units; the construction of its second tower along Roxas boulevard, the Grand Riviera Suites, which is in full swing; and the continued improvement of its horizontal projects, Metrogate Communities and Heritage Homes.

Diaz said this year, MRI is expanding its portfolio with the upcoming launch of several vertical projects that include Moldex Residences Baguio, Moldex Residences Silang, and The Grand Towers Buendia. MRI will also launch two new Moldex communities in Sta. Maria, Bulacan and Silang, Cavite.

In the fourth quarter, MRI will launch the high-rise Grand Towers Buendia, a 42-storey twin tower condominium. In April, it would also start construction of the Baguio project

For Grand Riviera Suites, construction would be full blast this year for the 55-storey edifice right in front of the US embassy. Diaz said the residential tower would start construction in April.

Also in April, the third building of its mid-rise Moldex Residences in Valenzuela starts construction.

In June, its mid-rise Silang cluster development kicks off with two buildings.

For horizontal development, MRI would open two new housing developments in Silang in May or June and in Sta. Maria, Bulacan, three months after.

"The year 2012 would be a pretty busy year for the Moldex Group," Diaz said.

The company still has a landbank of 500 hectares all located in Luzon.

Diaz said MRI has also stopped doing construction work for other developers to focus on it own projects.

MRI completed turnover of The Grand Towers on Vito Cruz in October 2011 and is now almost fully occupied.

The condominium caters mostly to students as it is near De La Salle University, St. Scholastica’s College and College of Saint Benilde.

There are six ongoing condominium projects by other developers in the area that would also serve the student market.

Diaz said these three schools alone add 1,800 students a year.

Property prices are also rising in the area. Prices at The Grand Towers have increased to about P95,000 per square meter from P62,000 per sq.m.

This year, MRI is also launching the company’s new campaign, "We’ll Mold Your Dream," as it becomes more visible in marketing and advertising.

Founded in 1967 as a pipe manufacturing company, a business that it continues to do today, MRI is one of the leading property developers in the country, engaged in both vertical and horizontal developments.

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