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

8990 disposes P2.8-B receivables

By Iris Gonzales (The Philippine Star) | Updated January 31, 2018 - 12:00am

MANILA, Philippines — 8990 Holdings Inc. sold P2.8 billion worth of receivables in the form of contracts to sell (CTS).

In a disclosure to the Philippine Stock Exchange (PSE) yesterday, 8990 said it entered into a sale and purchase agreement with Dearborn Resources and Holdings Inc.

Under the agreement, 8990 subsidiaries sold, assigned, and transferred to Dearborn P2.8 billion worth of contract to sell receivables.

The contract covers 8990 Davao Housing Development Corp. (P215.5 million), 8990 Housing Development Corp. (P1.8 billion), 8990 Luzon Housing Development Corp. (P559.9 million), 8990 Mindanao Housing Development Corp. (P5.45 million), and Fog Horn (P248.8 million).

The receivables arose from the sale of different housing units.

According to 8990, the sale of receivables is on a non-recourse basis and is based on the outstanding principal balance of such CTS receivables.

The company has earmarked P3 billion for several projects this year. 

Funding will come from receivables as the company continues with its liquidation activities.

The mass housing developer will launch at least five projects for 2018.

These include residential projects in Iloilo and Cebu and two in Davao.

It is also building a condominium along Ortigas Avenue Extension, which will be it biggest this year. The project comprises 33,000 condominium units.

8990 is the leading mass housing developer based on the Housing and Land Use Regulatory Board’s total number of units produced from 2011 to 2013.

Office vacancy rates seen to hit 10-12%

January 31, 2018

  A poor residential district and squatter colonies are seen near high rise residential and commercial buildings in Taguig, Metro Manila, Philippines. -- REUTERS

By Krista A. M. Montealegre, National Correspondent

DEVELOPERS are bringing to the market a record amount of new office supply this year, which may push vacancy rates to double-digit levels, real estate consultant Santos Knight Frank said.

More than 1.4 million square meters (sq.m.) of leasable office space are expected to be added to the current supply this year compared to the 800,000 sq.m. that went online in the previous year, Morgan McGilvray, Santos Knight Frank senior director for tenant representation, said in a briefing on Tuesday.

Vacancy rates, which have remained at the single-digit mark since 2010, may climb to 10-12% — a level still considered “quite healthy” based on global standards, Mr. McGilvray said.
In the last quarter of 2017, vacancy rates decreased to 4.33%, from 4.66% in the previous quarter.
Lease rates will stay neutral or grow at a slower pace in the next couple of years compared to the 5-6% year-on-year expansion seen in the previous years until the take-up can match the new supply, Mr. McGilvray said.
“Last year was a year of uncertainty and transition. This year will be a year of stability and growth,” Santos Knight Frank Chairman and CEO Rick M. Santos said.
Office take-up or net absorption for the entire 2017 reached about 675,000 sq.m., still up 25% from the previous year when uncertainty brought about by Philippine President Rodrigo R. Duterte’s anti-West outbursts and United States President Donald Trump’s “America First” policy weighed on the market.
The delay in the approval for applications for incentives offered by the Philippine Economic Zone Authority (PEZA) also affected take-up of new supply.
“BPO (business process outsourcing) firms assure no significant changes in operations as they will continue to vigilantly watch for changes in law that would negatively impact their business, just as they have done in every past administration,” Mr. Santos said.
Likewise, the Philippines will continue to reap the dividends from the improved relations with China, which has led to investments in BPOs and gaming companies, said Jan Paul D. Custodio, Santos Knight Frank senior director of research and consultancy.
Chinese groups expressed interest in making real estate investments through acquisition of residential condominium units in bulk or partnering with local companies to undertake projects such as buildings, schools, hospitals and smaller infrastructure projects, Mr. Custodio added.
The Philippine government’s “Build, Build, Build” program will significantly benefit from China’s “Belt and Road” Initiative, with Beijing seeing opportunity in Manila’s population demographics, rising income and urbanization trends.
Meanwhile, the growth in retail development, expected to add 560,000 sq.m. of leasable space until 2019, will fuel demand for logistics property, as the booming traditional retail and e-commerce sector drive the need for warehousing and distribution centers near urban areas, said Kash Aristotle B. Salvador, Santos Knight Frank associate director for investment and capital markets.
The huge demand from inbound and local tourists will also trigger an influx of hotels and resorts to the Philippines, with more than 3,000 hotel rooms anticipated to open this year in the Bay Area, Makati and Bonifacio Global City.
The Philippines remains as a leading real estate market in the region anchored on sound macroeconomic fundamentals, talented labor pool, and a growing middle class that will set the country apart from other Asian markets, Mr. Santos said.

Megaworld eyes “iTownships” to future-proof business

Philippine Daily Inquirer / 04:48 PM January 29, 2018

 Kevin L. Tan FILE PHOTO

Tycoon Andrew Tan-led Megaworld Corp. seeks to “future-proof” its property developments across the country by incorporating digital technology, design innovations and connectivity into its townships.

 “We have assigned teams to study how we can seamlessly integrate smart technology and innovations into our townships. In this fast-changing digital world, we see the importance of aligning our developments to quickly adapt to the disruptions, which we perceive as opportunities,” Megaworld senior vice president Kevin Tan said in a press statement.

After 28 years of building townships that offer live-work-play spaces, Megaworld has vowed to elevate the standards of its developments and create “iTownships.” 
“iTownships will become our new brand in creating the townships of the future. It is about innovation, integration, internet and interconnectivity. Having these features in our townships does not only make our developments ‘future-ready’, but it also allows us to take greater steps towards sustainability and environmental responsibility,” Tan said.

Among the projects to be implemented under the program are the digitization of customer service and payment processes, integration of smart home technology in residential units, use of digital technology and energy-efficient materials in structural designs, creation of “township operation centers” across all developments to maximize 24/7 security and safety monitoring and emergency response, urban art installations and creative pedestrian crosswalks and implementation of smart parking system including provision for electric vehicle charging in mall developments.

Green and sustainable features will also be at the core of the program, the company said. Some of the initiatives that will be implemented include the conversion of old street lights to LED and solar-powered lights, green roofing for office buildings, provision of vertical green spaces across developments

During the last 28 years of doing business in the property space, the Megaworld Group has built over 660 residential developments, 54 office towers and 15 lifestyle malls in 22 townships and integrated lifestyle communities across the Philippines.

real estate central philippines
Copyright ©2008-2019