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

Proposed solar farm in Sarangani gets CEPNS

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solar panels
A PROPOSED solar farm in Sarangani province has been added to the Department of Energy’s (DoE) list of energy projects of national significance, making it eligible to all the perks that come with the certification.

The Energy Investment Coordinating Council (EICC), which the DoE leads, has informed Total Power, Inc. that its 100-megawatt (MW) peak TPI Sarangani Solar Power Project has been granted the certificate of energy project of national significance (CEPNS).

The solar farm, which is in the pre-development phase, is set to benefit from the rights, terms and conditions extended to those with a CEPNS, including action on the project application within 30 working days.

The EICC sent the written notification to Jack Tan, Total Power president and chief executive officer, on Dec. 20, 2018. The company becomes the 10th project to be issued the certificate.

Patrick T. Aquino, one of the DoE’s directors and head of the EICC secretariat, told Mr. Tan that the project would also enjoy presumption of prior approval, which means that it is presumed to have already complied with the requirements and permits from other government permitting agencies.

The EICC was created pursuant to Executive Order 30, which was issued on June 28, 2017, in order to spearhead and coordinate efforts to harmonize, integrate and streamline the regulatory processes and relevant forms in the development of nationally significant energy investments.

The council is chaired by a representative from the DoE and is composed of representatives from the Department of Environment and Natural Resources, National Electrification Administration, National Grid Corporation of the Philippines, and National Power Corp.

It is also comprised of the Department of Finance, Department of Justice, Department of Transportation, Housing and Land Use Regulatory Board and other agencies whose participation may be deemed necessary by the council.

Mr. Aquino informed Total Power that the project is deemed approved if no action was made five days after the lapse of the 30-working day period for processing of the application.

Mr. Tan was required to submit a CEPNS monitoring document every 10th of the succeeding month to the EICC secretariat detailing the progress of the implementation of the project with respect to its permitting requirements.

Mr. Aquino said the DoE in the exercise of its supervisory power has the right to amend, alter or revoke the CEPNS for the pre-development phase in cases of irregularity and violations in the conditions for which the certificate was issued.

The DoE previously said that the attributes of a nationally significant project include a capital investment of P3.5 billion; contribution to the country’s economic development; economic impact; and potential contribution to the country’s balance of payment, among others. — Victor V. Saulon

Villar: 2018, a record-breaking year for ROW acquisitions

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Public Works Secretary Mark Villar announced that key reforms done to improve right-of-way (ROW) processes have now borne fruit.

“Since the issuance of Department Order No. 65, which created a ROW Task force (RTF) for each of the projects be­ing implemented, with the Director of the Public-Private Partnership Service, concerned Regional Directors as well as Unified Project Management Office (UPMO) Project Directors as heads, significant progress in ROW acquisition of certain big ticket projects included in the ‘Build, Build, Build’ Program can be seen,” Villar noted.

Public Works Secretary Mark Villar
Public Works Secretary Mark Villar

“The delegation of duties and re­sponsibilities to the different RTFs technically decentralized the ROW acquisition process. The decen­tralization of ROW functions was done with the end in mind of expediting the whole ROW acquisition process,” he added.

NLEX Harbor Link Project open this month

Villar noted that since the issuance of DO 65 last May, DPWH has acquired 100% possession of site of the NLEX Harbor Link Project Segment 10 as of December 2018, after a year and seven months.

“We are happy to announce that the NLEX Harbor Link Project will be ac­cessible to the public by January. When this is completed, travel time from C3 in Caloocan and NLEX, will be reduced to 10 mins,” Villar noted.

NLEX Harbor Link Segment 10 is composed of the 5.65-km elevated expressway traversing the NLEX from MacArthur Highway Karuhatan, Valen­zuela City, passing through Malabon City and C3 Road, Caloocan City, and the 2.6-km section between C3 Road, Caloocan City and R10, Navotas City.

“The next phase will connect it to R-10 and reduce travel time from Port Area in Manila to Quezon City to approximately 10 minutes,” Villar noted.

1980 project now at 87.8% completion

The DPWH is currently undertaking the finishing works in concreting the ad­ditional 600-meter segment which would make 2.7-kilometers of Mindanao Avenue Extension accessible within the first quarter of 2019.

“The project was started in the 1980s but was stopped for decades due to right-of-way issues. We are happy that it was during the term of President Duterte that we are able to deliver this project,” he added.

“The P118-million project which is now 87.78 percent also involves construction of drainage and slope protection, reinforced concrete box culvert, and street lighting,” Villar noted.

Resumed in 2017, the construction added a 700-meter road section from P. dela Cruz Street to MGM Road which was completed in June 2018, making 2.1-kilometers accessible by the public.

“Upon completion of the additional 600-meter segment, DPWH will be working on right-of-way issues along the missing 500-meter gap which will soon complete the full 3.2-kilometer stretch of the Mindanao Avenue Extension,” Villar noted.

“The completion of the 8-lane Min­danao Avenue Extension is our utmost priority as it will greatly reduce travel time by linking North Caloocan to the North Luzon Expressway (NLEX) and Quezon City and improve traffic flow in the cities of Novaliches, Valenzuela and Caloocan City,” said Villar.

Developer to invest P25 billion in 5 years

By Bernie Cahiles-Magkilat

Laguna-based P.A. Alvarez Properties and Development Corporation (P.A. Properties) is investing roughly P25 billion for the development of 25 affordable housing projects over a five-year period in various parts in Luzon.

Romarico “Bing” Alvarez, Chairman of P.A. Properties said in a statement that these projects are expected to deliver 25,000 in new housing units and could help alleviate the worsening backlog for socialized and economic housing needs.

Each project has an estimated investment of P1 billion and 1,000 housing units per project.
For 2019-2020 alone, the company is targeting 226 hectares in new land acquisitions for P3.5 billion. These properties are located in

Bulacan (San Jose del Monte, Norzagaray, Malolos); Laguna (Cabuyao, Los Baños); Cavite (Dasmariñas); Pampanga (San Fernando); and, Batangas (Tanauan, Sto. Tomas).

Target land acquisitions beyond 2020 are areas in Rizal, Bacolod, Davao, Iloilo and Cebu.
Alvarez noted that over the years, demand for housing has outstripped supply, driven by rural-to-urban and intercity migration in major cities such as Manila, Laguna, Clark, Cavite and Bulacan where people believe there are better prospects for employment.

Alvarez cited a 2016 UA&P study, which showed an excess of around 253,300 high-end (or open market) houses and 307,740 mid-priced homes in 2015, many of which were situated within the National Capital Region (NCR) and the country’s other urban centers.

But, he stressed, other housing segments presented a different story.

In the socialized, economic and low-cost housing segments, for instance, the housing backlog was so high that it is expected to reach 10.1 million units by 2030.

To date, Alvarez said, the socialized housing segment has a backlog of 3,032,351 units while the economic housing segment has 2,588,897.

And the backlog continues to rise by 168,000 to 190,000 units a year, according to reports.

“With these figures, addressing the backlog will require investments beyond the capacity of the national and local budgets,” he said.

“These housing segments primarily cater to poor to lower middle income classes which comprise 81.3 percent of the population,” Alvarez said.

With close to 25 years of experience in developing affordable housing and communities, P.A. Properties is well-positioned to capitalize on the huge housing backlog with 137 hectares of landbank.

“The current housing backlog stands at over 5.9 million countrywide, with socialized and economic housing accounting for the bulk of this requirement. As a result, prevalence of informal settlements that lack basic infrastructure and sustainable service has increased significantly across most towns and cities,” said Alvarez.

“The government alone cannot meet the rapidly growing demand for decent shelter, particularly in urban areas.”

“The government needs to develop the synergies and participation of all stakeholders, including the private sector, employers, citizens and development partners in the provision of shelter,” added Alvarez. “For its part, the government knows that policy-making, land acquisition and a successful expropriation plan are critical to meeting the interests of the general public.”

“People migrating to the cities and who are looking for places to live in are taking matters into their own hands by occupying land – building shacks and makeshift houses on vacant lots. Unless the government and the private sector come up with solutions, the pattern of land occupations and the clamor for decent housing will likely continue.”

In 2017, P.A. Properties ended with P11.8 billion in total assets growing at a 2Y CAGR of 25.3 percent.

In the same year, the company infused P835 million in equity, increasing its total equity to P3.1 billion.

NLEx Harbor Link Segment 10 to open this month

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THE Department of Public Works and Highways (DPWH) said the North Luzon Expressway (NLEx) Harbor Link Segment 10 is finally set to open this month.

“We are happy to announce that the NLEx Harbor Link Project will be accessible to the public by January. When this is completed, travel time from C3 in Caloocan and NLEx, will be reduced to 10 minutes,” DPWH Secretary Mark A. Villar said in a statement on Tuesday.

The project was originally scheduled for completion in December after the DPWH delivered 100% right-of-way on the toll road’s main line in October.

Harbor Link Segment 10 is an expressway project by the government’s private concessionaire NLEX Corp., which aims to connect Karuhatan in Valenzuela City to C3 road in Caloocan City, with a spur road to Radial Road 10 (R-10) in Navotas City.

About 30,000 cars a day are expected to benefit from the toll road once it opens, a bulk of which are trucks coming from the port area.

NLEX Corp. is part of Metro Pacific Tollways Corp., the tollways unit of Metro Pacific Investments Corp. (MPIC).

MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

More office spaces to be built within transportation hubs

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MORE property firms are building office spaces within transportation hubs, as a way to maximize space.

Commercial real estate services company Cushman & Wakefield Philippines said office spaces are now being developed within or near transportation hubs in Metro Manila.

“Another new concept may be how they are building offices near or on top, actually, of transportation hubs that are being built, like for example we have for Ayala, and then we also have the one for Parañaque Integrated Terminal Exchange, so there would be an office component to that as well,” Francis Adrian H. Viernes, manager of research and consultancy of Cushman & Wakefield Philippines, said in an interview with BusinessWorld last month.

In recent years, developers have also allocated office spaces within shopping malls, giving people the convenience of working in a place where they can also shop, eat and relax.

“This has been an arrangement that we’ve seen in few years. There are office portions being added to retail developments, like for example the case for SM, for (Megaworld’s) Uptown, it’s the usual scenario… and it’s not likely to change in the next years,” Mr. Viernes said.

At the same time, Cushman & Wakefield expects demand for office space this year to be driven by business process outsourcing (BPO) companies.

“The information technology and business process management sector, or IT-BPM will continue to take a huge chunk of office demand in 2019,” Mr. Viernes said, after a slowdown in the sector in 2017.

“For 2018, (IT-BPM) has regained a bit of strength, and for 2019 we’re expecting that to continue because all the uncertainties that we had when it comes to like the fiscal incentives, because of the policies that were being laid out, all the uncertainties have not provided anything that could negatively affect the business, so far,” he added.

The Philippines remains one of the top destinations for outsourcing firms. In Tholon’s Top 100 Outsourcing Destination for 2018, Manila and Cebu ranked second and 11th, respectively.

Aside from the Filipinos’ proficiency in English, outsourcing firms flock to the Philippines since office rental rates are significantly lower than Singapore or Hong Kong.

The government’s massive infrastructure program “Build, Build, Build” has also been a magnet for foreign investors.

’Yung massive infrastructure spending, it’s actually making some global noise… Those are seen as positive and progressive by foreign investors,” Mr. Viernes said. — Vincent Mariel P. Galang


New REIT rules could be out this semester

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housing condo
Real estate investment trusts are new investment instruments that will enable the general public to have a stake in real property projects.
THE SECURITIES AND EXCHANGE COMMISSION (SEC) is confident it can issue the planned revised guidelines on real estate investment trusts (REIT) within this semester, a senior SEC official said last week.

SEC Commissioner Ephyro Louis B. Amatong said the corporate regulator has heeded the Department of Finance (DoF) and Bureau of Internal Revenue’s (BIR) requests to ensure that money raised through REITs will be reinvested in the country.

“The DoF and BIR are requesting us to see if we can provide assurance in the implementing rules that any funds raised by the development companies through the REIT, through the issuance of shares on REIT, will be reinvested in the Philippines,” Mr. Amatong said after the commission’s en banc meeting in Pasay City on Tuesday last week.

REITs are listed firms that own and operate income-generating real estate assets like offices, apartment buildings, hotels, warehouses, shopping centers, and highways.

Congress passed Republic Act. No. 9856 — the REIT law — back in 2009, but taxation issues have dissuaded companies from offering this investment vehicle.

With the 12% tax on transfer of real properties removed under RA 10963, or Tax Reform for Acceleration and Inclusion Act that took effect a year ago, and the SEC favoring a lower 33% minimum public ownership level for REITs from 40-67% under current rules, the chief concern now is DoF’s question on whether or not the funds will remain in the country.

Mr. Amatong said both the SEC and Philippine Stock Exchange (PSE) can suggest rules to ensure that such funds will remain in the Philippines. In the case of the PSE, Mr. Amatong said its disclosure system and existing monitoring system is capable of watching where fund-raising proceeds will be used. PSE President and Chief Executive Officer Ramon S. Monzon said last December that the bourse operator will work on releasing new guidelines that will address the DoF’s concern of keeping all such funds home. “We will both come out with revised rules in the REITs to keep all the funds here. They will also do their own rule change,” Mr. Monzon said, referring to the SEC.

“So if the private sector developers and the PSE and the SEC can come to alignment earlier, tingin namin, mapapabilis ang pag-release ng REIT and IRR (implementing rules and regulations), then revise new IRR that will provide comfort to BIR, DoF,” Mr. Amatong said.

“The target is definitely first half (of 2019)… We’re very confident na kaya ’yan (it can be done).”

Asked on interest in REITs this year, Mr. Amatong cited an application by one investment bank to be a REIT administrator.

Alam namin may (We know of one party that is) interested. I think it is a matter of record naman. I think it is ATR that has applied to be REIT administrator, may pending application na,” Mr. Amatong said, referring to Maybank ATR Kim Eng. — Arra B. Francia

Food Terminal to be revived in Taguig, other sites

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vegetable market food terminal
THE Food Terminal Inc. (FTI), a Marcos-era project, is expected to be revived by the Department of Agriculture (DA) this year at a 36-hectare site in Taguig City.

“The Marcos-era program of a food supply consolidation center will be revived this year with the reopening of the Food Terminal Inc, in Taguig, Metro Manila,” Agriculture Secretary Emmanuel F. Piñol said in a statement on Wednesday.

“The FTI, which is now under DA, still has a 25-hectare area in Taguig to be used as the site of the new food terminal and another 11 hectares occupied by informal settlers,” Mr. Piñol added.

Mr. Piñol said that the new FTI, once completed, will have receiving and processing facilities for farm and fisheries produce to be sold to consumers and vendors associations in Metro Manila.

“Using modern communication technology, the new FTI will give out daily advisories on the buying prices of products such as chicken and hogs. It will be equipped with processing and cold storage facilities,” Mr. Piñol said.

He added that the FTI will also have logistics equipment to transport the goods from the regional food terminals to the markets. A total of six food terminals will be constructed nationwide during the term of President Rodrigo R. Duterte, Mr. Piñol said, citing FTI Chairman Raymundo B. Ferrer.

“These food terminals will serve as the consolidated areas for agricultural and fisheries products,” Mr. Piñol said.

The old FTI site was bought by Ayala Land Inc (ALI) in 2012 for P24.3 billion, with proceeds from the redeveloped site’s retail, dining and entertainment establishments to help fund programs of the DA and Department of Agrarian Reform (DAR).\

The ALI development is known as Arca South. — Reicelene Joy N. Ignacio

New port facility to rise in Batangas City

By Bernie Cahiles-Magkilat

A local port planner and developer is set to reclaim a 40-hectare area for port and mixed-use development in Batangas City with initial investment of P3 billion.

The Batangas Port Planners and Development, Inc. (BPPDI), a subsidiary of the Leviste Group of Companies has chosen Melekon Contractors, Inc. (MCI), a local reclamation and construction specialist, to be its main contractor for the mega project. It will be strategically located beside the Batangas International Port, the only international port in southern Luzon and one of the busiest ports in the country.

According to Bettina Nicole Reyes, MCI vice-president for marketing, the project was recently granted its Notice to Proceed (NTP) by the Philippine Reclamation Authority and its Environmental Clearance Certificate (ECC) by the Department of Environment and Natural Resources.

“We hope to start the project immediately by the first quarter of 2019,’’ Reyes said. The initial investment of P3 billion only involves the reclamation cost of the 40-hectare area.

Engr. Silvino M. Lambino, MCI head for construction said the P3-billion project cost already includes all the civil works such as land reclamation and construction of the administrative buildings, bridges, roads, and port facilities. The project’s main components include a port facility, a commercial zone, an industrial zone and a mixed-use hotel and condominium zone.

Engr. Liborio Antonio Palafox, MCI Project director, expressed optimism that MCI can finish the project by 2020, which according to him is a feat in itself by the industry standards.

MCI is a Filipino-owned engineering, procurement and construction company with expertise in power projects, underground construction, dredging and reclamation, roads, bridges and electro-mechanical works.

MCI, which holds main office at the Philippine Stock Exchange in Ortigas Center, specializes in delivering turn-key solutions for hydro, wind, solar and biomass renewable energy projects.

Developers want higher socialized housing price

By James A. Loyola

Socialized housing producers are urging the Housing and Urban Development Coordinating Council (HUDCC) and the National Economic Development Authority (NEDA) to reconsider and increase the present price ceiling for socialized housing from P480,000 to P533,333.

The call is being made by the two largest associations, the Organization of Socialized and Economic Housing Developers of the Philippines (OSHDP) and the Socialized Housing Alliance Roundtable Endeavour (SHARE).

It will be recalled that HUDCC Council approved a new housing ceiling of P480,000 on April 27, 2018 from P450,000, but also increased the minimum floor area from 18 sq. m. to 24 sq. m., thus negating whatever price adjustments that was given.

SHARE President Marcelino C. Mendoza pointed out that an increased housing ceiling would enable more borrowers to avail of the “socialized 3 percent rate of interest” by the Pag-IBIG Fund.

This would greatly alleviate their cash position considering that inflation is highest at 6.6 percent at present.

OSHDP President Engr. Jefferson S. Bongat said that the unrealistic price has dampened enthusiasm for new production, and this has already been evident with the anticipated decline in the licenses to sell issued by HLURB.

“Such situation is untenable considering that the government budget has been slashed to only around 4.7 billion in 2018 from a high of 33.4 billion in 2016, and it is the private sector, which is expected to take the slack,” Bongat added.

He said the housing backlog of 6 million units is nowhere to be met and will continue to pile up.

Mendoza, on behalf of non-government organizations producing houses, said the prices of raw land have increased by more than 15 percent.

The minimum wage has also been increased, to P573 or 49 percent in Metro Manila, on top of increased competition for both skilled and unskilled labor from the government’s “Build, Build, Build” Program, and the usual higher wages demanded by Filipinos working abroad.
The most recent Construction Materials Price Index for the third quarter of 2018 is at 252.83, up by 18.86 points from 233.97 in the same period of 2017.

In a letter to HUDCC Chair Eduardo del Rosario, the housing industry stakeholders – the OSHDP, the Subdivision and Housing Developers Association, and the National Real Estate Association – requested HUDCC for a P533,333 price ceiling for a 24 sq. m. house.

Benguet mayors seek bigger say in Greater Baguio

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Mine’s View Park Baguio
Mine’s View park in Baguio City -- BW FILE PHOTO
BENGUET mayors said they want the role of a development authority centered on Baguio City to be clearly defined to prevent overlaps with local government units (LGUs).

The mayors testified Friday at a Senate hearing in Camp John Hay, Baguio City on the proposed Baguio City, La Trinidad, Itogon, Sablan, Tuba and Tublay Development Authority (BLISTTDA).

“We do not like an authority, which is another bureaucracy over and above the LGUs, that will infringe on the autonomy and functions of the LGUs,” Baguio City Mayor Mauricio G. Domogan said, speaking on behalf of the mayors, during the Senate hearing.

“Instead, our suggestion is that we define the relationship of the development authority with the local government units, with the line agencies so that there will be no overlapping of functions and conflict,” he added.

Mr. Domogan also proposed for BLISTTDA to have a governing council chaired by a person elected by Benguet mayors, instead of appointment by the President as prescribed in the bill.

He also called for the proposed measure to clearly define the project funding responsibilities between the authority and LGUs. BLISTTDA should not interfere as well with the LGUs’ programs in its own jurisdictions, he added.

“Programs… of LGUs totally funded by their own funds, which does not involve other members of BLISTT, shall be the concern to be implemented by the said LGUs. The authority has no power to mingle with those programs and development which is solely for the development and programs of the LGU,” he said.

Mr. Domogan said Benguet mayors are otherwise in favor of the creation of a development authority that will monitor and coordinate policies between national government agencies and LGUs for the region.

In response, committee chair Senator Richard J. Gordon said there will be plebiscite on the creation of the development authority, with its composition and functions subject to the approval of citizens. He added that he will introduce a “proposition system” in the bill that would allow a mechanism for stakeholders to freely provide feedback on the policies of BLISTTDA.

“There will be a plebiscite. We cannot do this without a plebiscite… In the plebiscite, you can even suggest if it will be now a new board of supervisors that will handle it or the old system. There will be suggestions in the plebiscite. We will draft a law in such a way that we do this,” he said.

The Senate committee on government corporations and public enterprises, chaired by Mr. Gordon, conducted its second public hearing in Baguio City on House Bill No. 6974 and Senate Bill No. 1692, which propose to establish BLISTTDA.

The proposed body is tasked to formulate and regulate the implementation of the medium- and long-term plans and programs for the delivery of services, land use and physical infrastructure within the covered area. It will also set policies on traffic management and impose fines and penalties for all kinds of violations of traffic rules.

Under the bill filed by Senate President Pro Tempore Ralph G. Recto, the BLISTTDA council serves as the policy-making body of the development authority. It will be composed of the Benguet governor, congressmen of Baguio City and Benguet, as well as the mayors of the covered areas. The council’s chairman is appointed by the President. — Camille A. Aguinaldo

BIR to issue new TIN card design amid ‘rampant’ counterfeiting

By: - Reporter / @bendeveraINQ
/ 05:05 PM January 04, 2019
Photo from BIR website

To address the “rampant” sale of fake tax identification number (TIN) cards, the Bureau of Internal Revenue (BIR) will introduce a new design that would be more difficult to counterfeit.

“It has been observed that selling of fake TIN card is rampant and increasing (e.g., online selling through Facebook, selling by fixers to taxpayers while transacting in other government agencies, etc.). Hence, it has been decided to redesign the TIN card and at the same time declare it as an accountable form in order to address the issue of the unauthorized issuance of TIN card within and outside the BlR,” Internal Revenue Commissioner Caesar R. Dulay said in Revenue Memorandum Order (RMO) No. 2-2019 issued Jan. 3.

The new TIN card, or BIR Form No. 1931, will have a pre-numbered sequential serial number, which will allow BIR offices and personnel to control them and be accountable for their release.

The new TIN card design will be rolled out this month, based on a sample provided by the BIR on its website.

BIR personnel involved in issuing these cards will have to report on a monthly basis their receipts, issuances, transfers, and balances of accountable forms.

Based on the sample, while the first time issuance of the new TIN card will be free of charge, a fee of P100 must be paid to replace lost or damaged cards.

Former BIR chief Kim S. Jacinto-Henares had planned to issue “smart” TIN cards before her term ended in 2016, but this did not push through.

Unlike the cardboard IDs being issued for free, the smart ID cards were supposed to be slapped a fee.

A smart card is defined by as a “plastic card with an embedded microprocessor chip, electronic memory, and a battery,” which is being used to authenticate, manage and store information. Some of these cards, which have the same size as a credit card, may be swiped through a magnetic reader, BusinessDictionary noted.

Clark Airport concession holder to invest P6 billion

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THE North Luzon Airport Corp. (NLAC) said it is investing about P6 billion to fit out the new terminal at Clark International Airport, bringing it up to an annual capacity of eight million passengers.

NLAC was the winning bidder for the operation and maintenance concession of Clark International Airport. The consortium is composed of Filinvest Development Corp., JG Summit Holdings Inc, Philippine Airport Ground Support Solutions Inc and Changi Airport Philippines (I) Pte. Ltd. (CAP).

CAP is a wholly-owned subsidiary of Singapore’s Changi Airports International.

“We are very optimistic about the prospects of Clark International Airport and will do our part to support its growth by providing a world-class gateway airport. With our Group’s experience in airline operations, property development and our various consumer-oriented businesses, we will provide the best service and value proposition to both passengers and airlines to make Clark International their airport of choice,” JG Summit Holdings Inc. President and Chief Executive Officer Lance Y. Gokongwei said in a statement on Friday.

Filinvest said that the airport is expected to help spur growth in the tourism industry and other related businesses as it will be a departure and arrival point for more route network, which aims to introduce Clark to more domestic and international destinations.

“With the New Clark International Airport, travelers and visitors can expect to be greeted with fast, efficient, and hassle-free service. We believe that the ease in travel in a world-class airport will help boost the region’s tourism and related businesses. It is NLAC’s vision to redefine the air travel experience at Clark International Airport. The airport will be Northern and Central Luzon’s gateway connecting the region to the Philippines and the world,” Filinvest President and CEO Josephine Gotianun-Yap said.

NLAC said that it will tap Philippine Airport Ground Support Solutions, Inc to provide ground handling services to the airport terminal.

JG Summit closed at P59.40 on Friday, up 3.04%.

JG Summit reported a 30% decline in net profit in the third quarter to P14.79 billion due to effects of high fuel prices and a volatile dollar on its Cebu Pacific airline business and on its petrochemical business. — Reicelene Joy N. Ignacio

DoubleDragon aims to generate over P10-B revenues this year

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Hotel 101
Hotel101 aims to have 5,000 hotel rooms around the country by 2020.
By Arra B. Francia Reporter

DOUBLEDRAGON Properties Corp. looks to generate a total of P10.52 billion in rental income and sales from its malls, office, warehouse, and hotel projects in 2019, as the property developer continues to benefit from its aggressive expansion program in the previous years.

DoubleDragon Chairman and Chief Executive Officer Edgar J. Sia II said he expects the company to post P4.42 billion in rental income from its community mall concept called CityMall, its office projects in Metro Manila, as well as its industrial space leasing business.

The company was on track to end 2018 with 50 CityMalls in second and third tier cities to take advantage of the economic growth in the provinces.

Its office projects are DD Meridian Park, an office tower complex located in the Pasay City, and the Jollibee Tower in Ortigas Center.

It also completed its first industrial facility called CentralHub Tarlac in the third quarter of 2018, with seven more to follow in the coming years.

DoubleDragon is also set to book P6.10 billion in sales from five Hotel101 projects. In the latter part of 2018, the company incorporated international subsidiaries to help sell the firm’s hotel projects to potential investors overseas. It will start selling Hotel101 units in Davao, Boracay, Bohol, and Palawan this year.

“2019 is also expected to be the year with the biggest jump in DoubleDragon’s recurring revenues contributed by the over 600,000 square meters of completed leasable space versus having zero leasable space in 2014,” Mr. Sia told BusinessWorld in an e-mailed reply to questions.

DoubleDragon is one year away from its goal of having a total of 1.2 million sq.m. in overall leasing spaces in 2020. By 2020, the company would have 100 CityMalls, 5,000 hotel rooms under the Hotel101 and JinJiang Inn Philippines brands, and eight industrial hubs across different sites in Luzon, Visayas, and Mindanao.

Mr. Sia said he is upbeat on the company’s prospects for this year.

“Our outlook for 2019 is very positive, as I personally believe that the most challenging stage of a start-up business venture is always on its first seven years, and gladly DoubleDragon in 2019 is turning 7 years old after our joint venture partnership with the Jollibee Group in July 2012,” Mr. Sia said.

Formerly called Injap Land Corp. which was fully owned by the Sia family’s holding firm Injap Investments, Inc., Jollibee Foods Corp. Chairman Tony Tan Caktiong entered DoubleDragon through Honeystar Holdings Corp.

Prior to their partnership in property development, Mr. Tan Caktiong, through Jollibee, also purchased Mr. Sia’s grilled chicken chain Mang Inasal.

DoubleDragon’s net income attributable to the parent stood at P966.02 million in the first nine months of 2018, 19% higher year-on-year, after gross revenues surged 16% to P4.72 billion in the same period.

BSP reports property prices up 4.4% in Q3 2018

By Lee C. Chipongian

The central bank said residential property prices went up by 4.4 percent year-on-year in the third quarter of 2018 with townhouses leading the increase.
Bangko Sentral ng Pilipinas (BSP) logo
The Bangko Sentral ng Pilipinas’ (BSP) Residential Real Estate Price Index (RREPI) increased to 116.5 as of end-September from 111.6 same time in 2017.

Prices of townhouses rose by 18.3 percent while condominium units and single detached housing units increased by 5.8 percent and 0.2 percent, respectively.

The RREPI, which was based on banks’ housing loans, measures the average change in prices of various types of housing units comprising of single detached house, duplex, townhouse, and condominium unit.

“It provides a valuable tool in assessing the real estate and credit market conditions in the country,” said the BSP. Prices of duplex units which the BSP said is 0.76 percent of total new housing units reported, grew by 30.7 percent year-on-year.

On a quarterly basis, RREPI dipped by 0.6 percent, according to the BSP. In a statement, the BSP said the average residential property prices in both National Capital Region (NCR) and in areas outside of the NCR grew by 6.8 percent and 2.2 percent year-on-year, respectively.

“In NCR, price increases were observed across all types of housing units. Meanwhile, the growth in prices of townhouses, duplex housing units, and condominium units outweighed the slight decline in prices of single detached houses in areas outside of the NCR,” said the BSP.

The BSP said that for the third quarter period, about 71 percent of residential real estate loans (RRELs) were for the acquisition of new housing units. By type of housing unit, 53.2 percent of residential property loans were for the purchase of condominium units, followed by single detached units (38.3 percent), and townhouses (7.6 percent), it said.

By area, the central bank stated that majority of the RRELs granted in the NCR were for the purchase of condominium units, while RRELs granted in areas outside of the NCR were for single detached houses.

By region, the NCR had 57.4 percent of the total number of RRELs in the third quarter.

In areas outside of the NCR, CALABARZON accounted for 23.4 percent, Central Luzon had five percent, Central Visayas had 4.2 percent, Western Visayas had 3.3 percent, Davao Region had 2.4 percent, and Northern Mindanao had 1.4 percent. “Together, the NCR and the six other regions accounted for 97.1 percent of total housing loans granted by banks,” said the BSP.

Aboitiz property unit plans to launch projects in Pampanga, Davao

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ABOITIZLAND is introducing the Ajoya brand in Pampanga and Davao this year. — ABOITIZ
By Vincent Mariel P. Galang

ABOITIZLAND, Inc. is expanding its mid-market residential brand Ajoya in Pampanga and Davao City next year.

John A. Amon, AboitizLand vice-president for customer acquisition and innovation, said the company is launching new Ajoya communities in Acacia, Buhangin in Davao City and in Suclaban, Pampanga by the second quarter of 2019. The company is planning to launch a total of 400 units.

Mr. Amon told BusinessWorld via e-mail that the company is allocating a capital expenditure of P1.4 billion for the Davao project, and P2.7 billion for the Pampanga project.

This is part of the P7.5-billion capex the company has allotted for four Ajoya projects, including existing ones in Nueva Ecija and Tarlac.

AboitizLand expects P550 million in sales from the Davao development, and P450 million in sales from the Pampanga development.

Mr. Amon said the Ajoya brand generally targets professionals with families.

“The advancing professionals and their families live in the same house their parents gave them. With a growing family, they are beginning to feel the need for some improvements. They dream of a home that offers more than the usual — a home with a fresh and unique living experience, one that allows lasting connections and a truly enjoyable environment,” he said.

Mr. Amon said the Ajoya projects also cater the employees of business process outsourcing (BPO) companies, overseas Filipino workers (OFW) families, and the local residents.

The Ajoya brand is currently present in Cabanatuan, Nueva Ecija, and Capas, Tarlac. Both projects were launched in September 2018.

Ajoya Cabanatuan is a 19-hectare development in Barangay Valle Cruz with units ranging from 60 square meters (sq.m.) to 75 sq.m., and are priced between P3 million to P4.7 million.

On the other hand, the 13-hectare Ajoya Capas in Barangays Talaga and Estrada offers units ranging from 45 sq.m. to 60 sq.m., and are priced from P1.8 million to P2.5 million.

The Cebu-based property firm launched Seafront Residences in San Juan, Batangas in 2017.

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