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

Robinsons Land charts three-year expansion plan

Posted on April 30, 2015 10:04:00 PM
By Claire-Ann M. C. Feliciano, Senior Reporter

GOKONGWEI-LED Robinsons Land Corp. (RLC) said it will build three new malls for its fiscal year ending September this year, and another four for each of the succeeding two years through 2017.

SALES PEOPLE at Gokongwei-led Robinsons Land Corp. brief potential buyers at a showroom in this undated photo. -- BW FILE PHOTO

RLC opened a total of six new malls in its 2014 fiscal year ending September last year.

“Moving forward, for this year we intend to open three new malls and expand one existing mall,” Frederick D. Go, RLC president and chief operating officer, said during the company’s annual stockholders’ meeting late on Wednesday.

Robinsons Place Las Piñas was the first mall the company opened for its 2015 fiscal year. RLC will later open this year its first mall in San Jose, Antique as well as its flagship mall in Cebu.

It will also expand its mall in Novaliches City.

“All these four projects will increase our GLA (gross leasable area) by 10% in 2015,” Mr. Go said.

RLC ended fiscal year 2014 with a GLA of 1.056 million square meters (sq.m.).

“For fiscal year 2016, we intend to open four new malls and [undertake] one to two mall expansions, thereby increasing our GLA by 11%,” Mr. Go said.

In 2017, RLC plans to open four new malls that will lead to an 8% increase in its GLA.

“We continue to aggressively scout for properties nationwide to replenish land for future malls,” Mr. Go said, adding that the company also continues to be bullish on its office segment.


For its office leasing business, RLC grew its net leasable area (NLA) by 42% to 275,000 sq.m. in the last fiscal year following the completion of Cyberscape Alpha and Cyberscape Beta.

GT Capital, Ayala Land unit form joint venture

Posted on April 30, 2015 10:07:00 PM
By Krista A. M. Montealegre, Senior Reporter

THE PROPERTY arm of GT Capital Holdings, Inc. teamed up with an Ayala Land, Inc. (ALI) subsidiary to build a master-planned township project in Laguna, increasing the former’s exposure in the horizontal segment of the residential market.

The holding firm of Philippine billionaire George S.K. Ty told the stock exchange that its unit Federal Land, Inc. entered into a joint venture agreement with Alveo Land Corp. for the development of a 45-hectare property in Biñan.

Alveo Land is ALI’s upper- and middle-income segment residential arm.

The Ty family, controlling shareholders of the holding firm and owner of the property, sold the land to the joint venture vehicle of Federal Land and Alveo, GT Capital Head for Investor Relations Jose T. Crisol said in a phone interview.

“Through this strategic partnership with Alveo, we look to deepen our involvement in horizontal property development, in as much as the historical focus of Federal Land was mostly on high-rise condominium projects,” Federal Land President Alfred V. Ty said in a statement attached to the disclosure.

Federal Land has an existing horizontal project in Cavite, but the Laguna project will be larger in scale, Mr. Crisol said. Most of its projects are condominium towers in Pasay City and Bonifacio Global City in Taguig City.

The joint venture with the Ayala group is consistent with GT Capital’s business model of tying up with experts in the industries, he added.

“Being rooted in Ayala Land’s heritage of real estate excellence, Alveo Land has always aimed to create an extensive portfolio of holistic communities attuned to the needs of a dynamic, urban lifestyle,” Alveo Land President Robert S. Lao said in the same statement.

Located on Laguna Boulevard, the proposed project is accessible via the South Metro Manila Skyway and the South Luzon Expressway. It is near the De La Salle University Science and Technology Complex and the Ayala Laguna Technopark.

The property is a few kilometers from the planned Laguna Boulevard interchange of the proposed Cavite-Laguna Expressway and within the vicinity of Ayala Land’s Ayala Westgrove Heights and Nuvali projects.

Biñan is a first-class component city of Laguna with a population of 284,000, GT Capital said, citing the latest available data. It hosts several large industrial parks and commercial centers.

“Due to its proximity to the National Capital Region and the presence if major subdivisions, the city may be considered a suburban residential community of Metro Manila,” the listed firm said.

Aside from Federal Land, GT Capital has interests in Metropolitan Bank & Trust Co.; Toyota Motor Philippines Corp.; Toyota Manila Bay Corp.; Toyota Cubao, Inc.; Toyota Financial Services Philippines Corp.; Global Business Power Corp.; Philippine AXA Life Insurance Corp.; and Charter Ping An Insurance Corp.

Shares of GT Capital dropped 2.26% or P29 to close at P1,256 apiece yesterday.

Dusit to build P2-B hotel in Davao

By Richmond S. Mercurio (The Philippine Star) | Updated May 1, 2015 - 12:00am

MANILA, Philippines - Thai hotel chain Dusit International is bringing its dusitD2 brand to the Philippines, with Davao as its first site.

Dusit International plans to tap the burgeoning economic activity in Davao City with the entry of dusitD2 Davao, an upscale hotel that will cater to local and international business travelers.

The hotel will be built adjacent to the Dusit Thani Residences development and will be developed in partnership with local property firm Torre Lorenzo Development Corp.

DusitD2 Davao will be the first dusitD2 hotel in the Philippines when it opens by 2018.

“Dusit International created the dusitD2 brand with today’s travellers in mind. It features high-tech and modern conveniences coupled with contemporary design as seen in the world-class amenities and overall aesthetics of the hotel. We are confident that this will match the youthful vibe and excitement of Davao City,”said Ryan Chen, Dusit International director of development for Asia Pacific.

Chen said dusitD2 Davao guests would enjoy the same five-star treatment and gracious hospitality that is the trademark of Dusit across all its hotels around the world.

Dusit Thani Residences, a luxury apartment complex featuring 168 full-service residence units, and dusitD2 Davao is Dusit International’s maiden entry into the Davao market.

“With prime real estate locations, world-class infrastructure and facilities, Davao City is quickly becoming a choice venue for Filipino entrepreneurs, as well as investors from Asia Pacific and beyond. Just outside the city limits are destinations and vacation spots where one can enjoy the beach and other natural resources, creating a great work-life balance for both local residents and visitors,” the Bangkok-based hotel group said.

Metro land values rise anew in Dec

By Kathleen A. Martin (The Philippine Star) | Updated April 30, 2015 - 12:00am

MANILA, Philippines - The sustained demand for office space and residential property in Metro Manila increased land values anew in end-December last year, the Bangko Sentral ng Pilipinas said in a report.

Citing data from Colliers International, the BSP said implied land values in the Makati central business district climbed one percent to P440,000 per square meter in the fourth quarter of 2014 from P435,000 per sqm in the third quarter.

The latest figure is also 29 percent higher than the P341,505 per sqm recorded in the fourth quarter of 2013.

In Ortigas Center, the central bank said land values were up three percent to P158,500 per sqm in end-December from P154,000 per sqm in end-September and by 10 percent from P144,683 per sqm recorded in end-2013.

The central bank noted that land values in the Makati central business district are slightly above their actual price back in 1997 or before the Asian financial crisis of 1998. However, they are only about 46 percent of their 1997 prices in real terms, or values adjusted for inflation.

Land values in Ortigas Center, meanwhile, remain lower than their comparable levels in 1997. The BSP said the current prices are only about 81 percent of the 1997 values in nominal terms and only 36 percent in real terms.

At the same time, the central bank said office vacancy rate increased in end-2014 even with sustained strong demand for space as developers open more offices in Metro Manila.

Bidding deadline for Ortigas prime property too soon -- SM exec

Posted on April 29, 2015 09:57:00 PM [ BusinessWorld Online ]
By Krista A. M. Montealegre, Senior Reporter

THE JUNE DEADLINE for the submission of bids for the “Payanig sa Pasig” lot may be too soon, a ranking official of SM Prime Holdings, Inc. said yesterday, as prospective bidders study legal issues hounding the prime property in the Ortigas central business district.

THE SKYLINE of the Ortigas business district -- BW FILE PHOTO

On the sidelines of SM Investments Corp.’s stockholders meeting in Pasay City yesterday, SM Prime President Hans T. Sy told reporters that while the 18.48-hectare property is “interesting,” the company is still “evaluating [its] legal position.”

“I don’t know if this month of May is enough. Bidding is sometime in June. I’m not sure if it’s enough for us to do those studies,” Mr. Sy said.

Asked if SM Prime will seek an extension, he said: “We’ll see. We’re trying to get hold of all our papers. It’s in our legal [team] and we will discuss. By then we will know whether to ask for more time or whether to go for it.”

Interested parties can purchase the bidding package until May 15. The submission of pre-qualification of documents will run from April 27 to May 15 while a pre-bid conference is scheduled on May 26, 2015. The opening of bids was slated for June 3.

The Presidential Commission on Good Government (PCGG), an agency tasked to recover ill-gotten wealth of former dictator Ferdinand E. Marcos, is bidding out the property.

PCGG Chairman Andres D. Bautista had said 20 major real estate developers attended the agency’s April 17 briefing on the auction of the property despite questions on who owns control and ownership of the land.

Businessman and known Marcos crony Jose Y. Campos surrendered the property in 1986 under Mid-Pasig Land Development Corp.

PCGG officials and members of the Privatization Council are facing graft charges before the Office of the Ombudsman filed by BLEMP Commercial of the Philippines, Inc. President Richard S. Singson, whose company claims ownership of the land.

Other parties, including the Ortigas family, have asserted too their ownership of the property.

Currently, Mr. Bautista had said PCGG only controls about 8 hectares of the rectangular lot -- which means tenant leases are being paid to government -- despite being in possession of the original 2.4-hectare land title and a reconstituted title for a 16-hectare parcel as granted by the court in 1988.

BCDA selling Heritage Park lots

BCDA selling Heritage Park lotsBy Othel V. Campos | Apr. 29, 2015 at 10:45pm [ ]

State-run Bases Conversion and Development Authority said it will hold a bidding for the block sale of 4,714 memorial lots and properties at Heritage Park in Taguig City.

Heritage Park is located along C-5 in Fort Bonifacio, Taguig and is considered as the country’s premier memorial park.

“We are inviting interested firms to participate in the public tender of the said lots and properties,” BCDA president and chief executive Arnel Paciano Casanova said.

Casanova said the public tender of the lots and properties would be on an “as-is, where-is” basis via cash sale mode.

Casanova said the minimum acceptable bid price for the Heritage Park investment certificates was P430 million, inclusive of value added tax.

BCDA said of the 4,714 lots and properties, 3,580 were small plots including estate lots, walled estate lots, garden lots, single columbary niches, and companion columbary niches.

BCDA asset disposition program chairman Tomas Macrohon said interested bidders could purchase the terms of reference for a non-refundable fee of P50,000 at the BCDA Corporate Center.

A pre-bid conference will be held on May 8, 2015 to discuss the salient features and requirements of the TOR as well as queries from interest bidders.

Megaworld set to open 2 hotels

By Jenniffer B. Austria | Apr. 28, 2015 at 10:30pm [ ]

Megaworld Corp., the property development arm of tycoon Andrew Tan, is set to open this year two new hotels that will boost the group’s hotel portfolio.

Megaworld said in a statement it would open the 151-room Richmonde Hotel Iloilo in June and the 480-suite Belmont Luxury Hotel Newport in the second half of 2015.

The opening of two new hotels will add to the Megaworld’s current hotel portfolio which currently operates 1,900 rooms across existing six hotels, including Richmonde Hotel Ortigas, Eastwood Richmonde Hotel, Marriott Hotel Manila, Maxims Hotel and Remington Hotel in Newport City and Fairways and Bluewater in Boracay Newcoast.

Richmonde Hotel Iloilo will occupy eight levels of the 12-story Richmonde Tower in the 72-hectare Iloilo Business Park in Mandurriao, Iloilo City.

Megaworld earlier commissioned world-renowned architectural firm Gettys to design the hotel’s façade, grand lobby, restaurant and guest rooms. Gettys took inspiration from the city’s rich agricultural roots for the hotel’s design concept.

“Finally, we are bringing a new hotel experience for Iloilo where business indeed meets sophisticated pleasure. The people of Iloilo can now be proud of having a hotel that truly provides first class standards. We will certainly set the bar of hotel lifestyle in Western Visayas,” Carmen Fernando, managing director, Prestige Hotel & Resorts, Inc., the hotel management company of Richmonde Hotel Iloilo and a subsidiary of Megaworld said.

Meanwhile, Belmont Luxury Hotel Newpor will open within the 25-hectare Newport City, the country’s first 24/7 integrated leisure and entertainment township that is home to the famous Resorts World Manila.

The hotel boasts of first-class amenities that include pocket gardens and landscaped atrium, 24-hour fitness center and workout area, lap pool with in-water pool lounge, paved sunbathing lounge, massage deck and seating area, pool spa, steam and sauna as well as its own medical clinic.

“We have been experiencing an increasing demand for hotel rooms in Newport City because of its proximity to the Ninoy Aquino International Airport, and of course, the presence of Resorts World Manila. Belmont Luxury Hotel Newport will primarily cater to business travelers who expect luxurious hotel experience in a private enclave,” Megaworld senior vice president Francisco Canuto.

Banks tighten rules on property loans

By Kathleen A. Martin (The Philippine Star) | Updated April 27, 2015 - 12:00am


MANILA, Philippines - Banks tightened anew their lending standards for commercial real estate loans in the first quarter, a Bangko Sentral ng Pilipinas (BSP) survey showed.

“The net tightening of overall credit standards for commercial real estate loans was attributed by respondent banks to perceived stricter oversight of banks’ real estate exposure along with banks’ reduced tolerance for risk, among others,” the BSP said.

“In particular, respondent banks reported wider loan margins along with stricter collateral requirements and loan covenants for commercial real estate loans. At the same time, respondent banks also cited reduced credit line sizes and shorter maturities for this type of loan,” the central bank said.

This is the 11th consecutive quarter that banks tightened their lending standards for commercial loans, based on the quarterly Senior Loan Officers Survey conducted by the BSP.

Latest central bank data showed banks’ exposure to real estate increased 21 percent to P1.221 trillion last year from P1.006 trillion in 2013.

Real estate loans accounted for the bulk of the banks’ exposure to the sector at P1.043 trillion, while investments in the property market accounted for the remaining P178.028 billion.
For the next quarter, the BSP said the number of banks expecting to further tighten their credit standards for real estate loans outnumbered those banking on the opposite.

The survey also showed a number of the respondent banks reported an increase in demand for the real estate loans in the first quarter.

“This was on the back of clients’ improved economic outlook as well as increased inventory and fixed-capital investment needs of clients,” the central bank said.

The BSP added a number of banks expect the demand to continue climbing in the second quarter, although most see a steady loan demand for the period.

With regard to housing loans extended to individuals, banks were also found to have tightened their credit standards for said loan in the first quarter, the BSP said.

“The tighter credit standards for housing loans were attributed by respondent banks to perceived stricter financial system regulations,” the central bank said.

 “Banks’ responses showed wider loan margins and stricter collateral requirements for housing loans,” the BSP noted.

DoubleDragon plans to raise P5B via bond sale

Posted on April 26, 2015 10:07:00 PM [ BusinessWorld Online ]
By Krista Angela M. Montealegre, Senior Reporter

DOUBLEDRAGON Properties Corp. is taking on fresh debt this year -- to the tune of P5 billion -- to finance the construction of its chain of branded community malls, a company official said.

DOUBLEDRAGON Properties Corp. Chairman and Chief Executive Officer Edgar “Injap” J. Sia II talks to reporters on the sidelines of an investor show at the Mandarin Hotel in Makati City in this photo taken on March 17, 2014. -- BW FILE PHOTO

“We just raised P7.4 billion last October in corporate notes and we’re raising another five [billion pesos],” Hannah M. Yulo, DoubleDragon chief investment officer and senior vice-president for corporate finance, told reporters on Tuesday last week.

The developer targets to raise the funds -- likely through the issuance of corporate notes anew -- “hopefully in the first half” of the year, Ms. Yulo said.

“We’re actually more interested in raising financing in the debt market through retail bonds…” she said.

After raising P1.16 billion from an initial public offering in March last year, DoubleDragon then issued seven-year fixed-rate notes amounting to P7.4 billion to fund the development of its chain of CityMalls.

“Eventually to create liquidity, once we move up to the Main Board and to get more foreign funds interested, eventually we have to do something in the [equity] market,” Ms. Yulo said.

The developer is listed on the Small, Medium and Emerging Board of the Philippine Stock Exchange (PSE), which requires a minimum authorized capital stock of P100 million and moving to the PSE’s Main Board would mean having to raise that by a fivefold to at least P500 million.

By 2020, DoubleDragon plans to build a hundred CityMalls to make the latter the largest branded community mall chain in the country. The company opened the first branch in Roxas City, Capiz last month. It already secured 20 prime properties in key provincial areas.

“We’ll complete 25 by yearend, but that does not necessarily mean they are all open,” Ms. Yulo said.

The firm aims to hit P1 billion in net profit by 2016 and P4.8 billion by 2020, with the bulk coming from recurring rental income of the one million leasable commercial space it is building.

Earnings of DoubleDragon surged 360% last year to P560 million, while revenues from real estate sales also soared by 134.83% to P1.2 billion.

DoubleDragon is a joint venture between Injap Investments, Inc. of Edgar “Injap” J. Sia II -- the founder of the Mang Inasal grilled chicken restaurant chain -- and Honeystar Holdings Corp. of Tony Tan Caktiong, chairman and founder of Jollibee Foods Corp.

Ayala Land completes P7-b bond sale

By Jenniffer B. Austria | Apr. 26, 2015 at 10:35pm [ ]

Property developer Ayala Land Inc. has successfully raised P7 billion from the sale of seven-year bonds amid strong demand from investors, according to one of the underwriters handling the transaction.

Reginal Cariaso, equity markets head of BPI Capital Corp., one of the underwriters, said in a text message total demand reached P17 billion as of the end of the offer period on April 22.

Interest rate for the bonds due 2022 was set at 4.5 per annum. Issue date is on April 29.

Proceeds from the bond sale will be used to partially finance the company’s P100.3-billion programmed capital spending this year.

The company will spend the proceeds for the construction of shopping malls, office buildings and hotels in Vertis North in Quezon City, Circuit Makati in Sta. Ana Makati and South Park District in Alabang.

Aside from BPI Capital, Ayala Land also tapped PNB Capital, China Bank and Hongkong Shanghai Banking Corp. as the underwriters for the offering.

It also hired BDO Capital and Investments Corp. and First Metro Investments Corp. as co-lead managers for the offering.

The P7-billion bond sale represents the second and final tranche of the P15-billion bond offering of Ayala Land which was approved by the Securities and Exchange Commission last year.

Ayala Land sold P8 billion worth of bonds due 2025 at 5.6250 percent annum in 2014.

Aside from the P7 billion bond offering, Ayala Land also plans to issue another tranche of Homestarter Bonds worth as much as P2 billion in the second half of the year.

This will be the seventh tranche of Homestart Bonds that will be issued by Ayala Land since the program was launched in 2006.

Homestarter Bonds is program that aims to provide opportunities for people to purchase real estate products. It is an interest-earning financial instrument that primarily targets retail investors who wish to set aside funds that may be used as full or partial downpayment for the purchase of an Ayala Land property.

Villar plans IPO for All Home

By Richmond Mercurio (The Philippine Star) | Updated April 27, 2015 - 12:00am

MANILA, Philippines - Real-estate tycoon and former Sen. Manuel B. Villar Jr. plans to conduct an initial public offering (IPO) for his All Home brand within the next three years as he aims to grow the branch network of the one-stop home improvement store to as many as 40 branches by 2018.

Villar, chairman of Vista Land and All Value Holdings Corp., said he is speeding up not only the expansion of All Home branches nationwide but also the brand’s possible debut in the local stock market.

“Five years is too long, I’m accelerating it so hopefully within three years,” Villar said of All Home’s planned IPO.

The Villar Group is prepared to spend as much as P12 billion over the next five years to open six to eight All Home outlets nationwide every year.

“In the next five years we will be ramping up the establishment of more All  Homes. Minimum is six to eight stores per year nationwide. That is at least for the next five years because we still have a lot of available areas. We are just starting,” Villar said.

All Home, a one-stop shop home construction, renovation and decoration provider, currently has eight stores following the launch of its biggest store in Sta.Rosa City, Laguna last week.

The Sta. Rosa branch occupies 10,500 square meters of space dedicated to an extensive collection of home improvement items and services.

Within the year, Villar said four more new All Home branches would open while two existing ones would be expanded.

New stores will open this year in Imus, Las Piñas, Bataan and Antipolo while the branches in San Jose del Monte, Bulacan and San Fernando, Pampanga will be expanded.

An All Home store with an average leasable space of 9,000 square meters would cost about P270 million to P300 million to put up.

By next year, Villar said All Home would start expanding outside Luzon with branches eyed in major cities such as Cagayan De Oro, Iloilo, and Davao.

“I think our timing with All Home is just perfect. Every store we open is better than the previous one,” he said.

Other existing All Home branches are currently located in Muntinlupa, Taguig, Bulacan, Pampanga, and Daanghari.
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Sta. Lucia to raise P6b to expand real estate projects

By Jenniffer B. Austria | Apr. 22, 2015 at 11:00pm [ ]

Sta. Lucia Land Inc., the property developer controlled by businessman Exequiel Robles, said it plans to borrow P6 billion to expand real estate projects across the country.

SLI said in a disclosure to the stock exchange the board authorized the company to issue debt instrument worth P6 billion for land bank acquisitions, acceleration of ongoing projects and funding of new projects.

SLI said it was poised to capture the country’s remarkable economic performance, with plans to accelerate expansion outside Metro Manila.

SLI recently signed 16 joint venture agreements in Davao, Rizal, Pasig, Batangas and Laguna for a total of 142.33 hectares of land.  It also acquired properties in Batangas and Iloilo covering 34.53 hectares.

The company said following the acquisition of new properties, the board also approved the development of new housing projects in the said areas.

The company recently formed a wholly-owned unit called Sta. Lucia Homes Inc., a contractor company whose sole purpose is to offer construction services to the SLI group’s over 120,000 lot buyers.

The company said more than 60,000 lots buyers nationwide have yet to build their houses.

SLI reported an 83-percent increase in net income to P548 million in 2014 from P300 million in 2013, as real estate revenue jumped 80 percent to P1.44 billion from P801 million.

Majority of the growth came from the sales of Colinas Verdes Residential Estates (San Jose Del Monte, Bulacan), Monte Carlo Tower - Sta Lucia Residenze (Cainta, Rizal), Greenmeadows (Pavia, Iloilo) and Ponte Verde (Davao City).

Avida eyes P14-B capex for this year

By Richmond S. Mercurio (The Philippine Star) | Updated April 23, 2015 - 12:00am

MANILA, Philippines - Avida Land, the mid-market brand of property powerhouse Ayala Land Inc., intends to bolster its subdivision portfolio this year as it is likely to get over a 10th of its parent firm’s P100 billion capital expenditure (capex) budget.

Avida Land president Chris Maglanoc said the company has earmarked P14 billion for expansion and acquisitions this year. The amount would come from ALI’s P100-billion capex.

 “What we want right now is really to grow the house and lot line, the subdivision. That is why in our growth thrust, landbanking is actually provincial,” he said.

Maglanoc said Avida Land is scouting for possible land acquisitions in key cities in the Visayas and Mindanao regions.

 “We’re looking for properties in Cagayan de Oro, Davao, and Cebu, if we find the right location and the right price,” he said.

Avida Land, which is celebrating its 25th year this 2015, is set to launch 10 projects worth P20 billion across strategic locations in Bonifacio Global City, Makati City, Quezon City, Muntinlupa, Bulacan, Tagaytay, Iloilo and Tuguegarao within the first half of the year.

The projects to be launched include seven residential condominiums, two land and house subdivision, and one office condominium.

“From the last two years, we’re able to move around P25 billion worth in terms of sales. So we’d like to grow that,” Maglanoc said.

Camp John Hay lessee urged to vacate property

By Louella D. Desiderio (The Philippine Star) | Updated April 23, 2015 - 12:00am

MANILA, Philippines - The Bases Conversion and Development Authority (BCDA) is calling on Camp John Hay Development Corp. (CJHDevCo) to abide by the Notice to Vacate Camp John Hay issued by the Regional Trial Court of Baguio.

According to BCDA president and chief executive officer Arnel Paciano Casanova, CJHDevCo should respect the rule of law and comply with the notice which was served on Monday.

“The arbitration was a process that CJHDevCo forced BCDA to participate in. Now that the court has spoken, they should follow the rule of law and vacate Camp John Hay,” he said.

He said sub-lessees of CJHDevCo are also advised to seek legal counsel to protect their investment in Camp John Hay as they are covered by the notice to vacate the property.

With the notice served, CJHDevCo is given 30 days to leave Camp John Hay and to promptly deliver the leased property, inclusive of all new constructions and permanent improvements to the BCDA.

Should CJHDevCo fail to comply with the notice within the prescribed period, a Writ of Execution – a court order to enforce a judgment by levying on real or personal property of the debtor –  would be given as provided by law.

The notice was issued following the decision of the arbitration committee under the Philippine Dispute Resolution Center Inc. (PDRCI) ordering CJHDevCo to vacate the Camp John Hay and return the property to BCDA.

The BCDA, meanwhile, has been ordered by the arbitration committee to give back to CJHDevCo lease payments worth P1.42 billion.

The PDRCI issued the decision as both parties have concerns under the agreement entered into.

In 1996, BCDA entered into a lease agreement for a portion of the John Hay Special Economic Zone with CJHDevCo for 25 years.

While the lease agreement is only for 25 years, CJHDevCo sold 50-year leases to sub-lessees.

The BCDA, meanwhile, has been found to be in breach for among others, failing to set up the One Stop Action Center to issue national and local permits to enable CJHDevCo to develop the Camp similar to those established in the Subic and Clark Economic Zones

Alveo Land investing billions to develop mixed-use Bonifacio Global City property

Posted on April 21, 2015 10:26:00 PM [ BusinessWorld Online ]

ALVEO Land Corp., the upscale subsidiary of property giant Ayala Land, Inc., yesterday said it is investing P16 billion to develop a 2.3-hectare mixed-use development in Bonifacio Global City (BGC) over the next six years.

Park Triangle, which is located at the crossroads of 32nd Street and 11th Avenue, will house three office towers, a residential condominium, and an Ayala mall, Alveo Division Manager for Project Development Antonio S. Sanchez III told a media briefing yesterday at the Alveo Headquarters in BGC.

Under the office segment, there will be the two-tower Park Triangle Corporate Plaza, whose North Tower will have 51,655 square meters (sq.m.) of gross floor area (GFA), while details for the South Tower have yet to be firmed up.

The third office condominium, the Park Triangle Corporate Center, has a GFA of 47,691 sq.m.

In addition, Alveo will also pour P4 billion in Park Triangle Residences, which is expected to generate P8 billion in potential revenue from a selling price of P175,000 per sq.m.

The 49-storey condominium will house 616 residential units, varying from studio type and those with up to three bedrooms, with size ranging from 36 sq.m. to 232 sq.m.

Price starts from P6.5 million and can go as high as P44 million per unit, and turnover will start in the first quarter of 2021.

“Park Triangle Residences will be the only property in BGC to have direct access to an Ayala mall. We want this to be a prominent address in BGC’s new center of gravity,” Mr. Sanchez said.

Ayala Malls Park Triangle, on the other hand, will be located right below the residential tower and will have more than 23,000 sq.m. of gross leasable area. It will be anchored on Kidzania Manila, the local site for the globally known role-playing center for children.

The mall is targeted to open in the second quarter of 2018.

“Being located in the fastest growing CBD (central business district) in the Philippines, Park Triangle will grow as an integrated lifestyle hub -- a master-planned destination complete with office, retail and recreation components,” Alveo said in a statement yesterday.

“A residential development in this corporate and lifestyle area would come almost like a natural investment for urban professionals and families alike who are aspiring for a life of ultimate urban convenience at a very prominent address.”

For the first half of 2015, Alveo will launch six projects worth P25 billion. These are The Stiles Enterprise Plaza in Circuit Makati; High Park Tower 2 in Vertis North, Quezon City; The Veranda East Tower in Arca South and Park Triangle Residences -- both in Bonifacio Global City, Taguig City; as well as lots for sale in Nuvali in Laguna and Alviera in Pampanga.

Established in 2002, Alveo’s portfolio is now composed of 36 projects in Makati, Taguig, Pasig, Quezon, Manila, Cebu, Davao, Pampanga, Cavite, Laguna, and Tagaytay. -- Daphne J. Magturo

Ayala to put up biggest mall in Parañaque City

By Perseus Echeminada and Richmond Mercurio (The Philippine Star) | Updated April 21, 2015 - 12:00am

STAR/File photo

MANILA, Philippines - Ayala Land Inc., the property development arm of the Ayala Group, has joined the action at the Pagcor Entertainment City in Parañaque with its plan to build a huge mall complex, a BPO center and a hotel within a nine-hectare property, according to documents filed with the Parañaque City government.

Ayala Land commercial business group head Jose Emmanuel Jalandoni said the project would have a mall, hotel and office components. He said construction is set to start this year and completion is eyed by the second half of 2018. According to Jalandoni, about P12 billion is the project cost of the planned mixed-use development.

Parañaque Mayor Edwin Olivarez, in a statement, said the decision of Ayala Land to invest in the southern city is a huge vote of confidence for the city, which in 2014 was adjudged the country’s most competitive city in terms of economic dynamism and is now dubbed the Mega City by the Bay.

“This is another affirmation of Parañaque’s emergence as a new economic and business hub,” he said. “We welcome with open arms Ayala Land’s investment which we estimate should create at least 10,000 new jobs for our people and help sustain the country’s robust economic growth,” he said

Olivarez said Ayala Land filed an application for a locational clearance with the city’s Local Zoning Board of Adjustments and Appeals for its Entertainment City project, which is entirely within the jurisdiction of Barangay Tambo in Parañaque.

The application was approved by the board last week, he added.
The mayor said Ayala Land’s decision is in response to the city’s “Invest in Parañaque” program, which is aimed at attracting more long-term investments that create stable jobs.

He said more businesses have expressed similar interest to locate in Parañaque in the coming months.

Melanie S. Malaya, head of the city’s Business Permits and Licensing Office and a member of the board, said Ayala Land’s specific application is for the construction of a mall along Macapagal Ave. which would be bigger than the nearby SM Mall of Asia complex. The MOA is listed as having 407,000 sqm in gross floor area.

The BPLO chief said the mall would become Parañaque’s biggest mall and is seen to compete head on with the Mall of Asia.

She said the Ayala Group has secured a 45-year lease for the 9.2-hectare property from the Wenceslao group, owner of the Aseana Business Park complex, for the project. The property is located right across the new City of Dreams Manila, a casino and hotel complex also owned by the SM Group in partnership with the Melco Crown group of Macau.

Ayala Land would also develop a BPO center and a 12-storey hotel with at least 325 rooms within the leased property, Malaya added.

The entry of the Ayala group at the Entertainment City effectively bringstogether all the country’s biggest property developers in the area, which already has two casino complexes in operation: The City of Dreams of the SMgroup and the Solaire Resorts and Casino of port mogul Enrique Razon.

Two other casinos are also set to built at the entertainment city : the Bay shore City Resorts Worlds of Travellers International group, a joint  venture  between Filipino tycoon Andrew Tan’s  Alliance Global Group Inc. and the Genting group of Malaysian, and Japanese billionaire Kazuo Okada’s Manila Bay Resorts project.

SM venturing into township development

By Richmond S. Mercurio (The Philippine Star) | Updated April 20, 2015 - 12:00am

MANILA, Philippines - Integrated property firm SM Prime Holdings Inc. is taking the SM mall slogan “we got it all for you” to new heights with plans of moving into larger scale developments in the coming years.

SM Prime president Hans T. Sy told The STAR that the property giant is keen on jumping into the township bandwagon which rivals Ayala Land and Megaworld have been aggressively investing into in recent years.

“Ours is more on the small integrated developments so we’re not really into that townships at present. But if there is an opportunity then we’ll go into it,” Sy said.

More than just being a trend, township developments are regarded as the standard in the local real estate sector, according to Ayala Land and Megaworld. 

“Our focus at present is where we are best, which is the integrated mall development,” Sy said.

In its first full year as an integrated property company of the SM Group, SM Prime in 2014 posted a revenue growth of 11 percent year-on-year at P66.2 billion and a consolidated net income growth of 13 percent at P18.4 billion.

“The Philippine market is very consumer-oriented, and that type of business is really our line,” Sy said.

With a potential venture into township developments, SM Prime plans to capitalize on the popularity of its mall brand to anchor future larger scale integrated property projects.

“With large land banking in strategic locations, we are able to amplify our capacity to leverage on our existing world-class malls to anchor more lifestyle cities,” Sy said.

“As our developments serves as pillars of progress, we remain focused on expanding our reach further to the periphery, thereby promoting inclusive growth which is in line with our vision to be a prime mover in nation building,” he added.

As one of the largest integrated property developers in Southeast Asia, SM Prime to date has 55 malls in the Philippines and China with a total gross floor area of more than 7 million square meters.

It has 25 condominium projects to date composed of 69,414 units, as well as four office buildings with a combined gross floor area of 188,541 square meters.

SM Prime is also in the tourism and hospitality sector, with four hotels of over 1,000 rooms as well as four convention centers and two trade halls.       

“With the forecast on the Philippines to be the fastest growing Southeast Asian economy in 2015, we anticipate consumer spending to be vibrant and the business climate to be dynamic. We shall set our sights to further expand in both our commercial leasing business and our hotels and resorts portfolio,” SM Prime chairman Henry T. Sy, Jr. said.

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