Property company inks deal to expand in Clark Global City

May 1, 2019 | 12:06 am [ bworldonline.com ]

GLOBAL Gateway Development Corp. (GGDC) said it signed a deal with Proactive Properties Development Corp. (PPDC) which involves the latter building a commercial center and office tower in Clark Global City. In photo are GGDC Chairman Dennis A. Uy and Prime Philippines President and CEO Jettson Yu. — COMPANY HANDOUT

THE developer of Clark Global City (CGC) will sublease about two hectares of land to businessman Jettson Yu, who plans to build an office tower and retail hub.

In a statement Tuesday, Global Gateway Development Corp. (GGDC) said it has signed a memorandum of agreement with Proactive Properties Development Corp. for the sublease of a 2,208-square meter lot in CGC.

Proactive Properties plans to develop the land in two phases, with the first phase to include a commercial center with international retail shops. The second phase will cover the development of a 12-storey office building that will cater to international companies looking for tax incentives. 

The company aims to take advantage of the demand for more office and retail spaces in Central Luzon within the next five years.

“Its growing and talented population of more than 2.1 million only shows that a minimum of 300,000 square meters of office locations and 200,000 square meters of commercial retail spaces will be needed within the next five years,” GGDC quoted Mr. Yu as saying in a statement.

Mr. Yu also owns real estate consulting group Prime Philippines.

“Having Proactive Properties onboard in our endeavor of building CGC as a new central business district aligns with our mission of building this generation’s new center of commerce, life and innovation,” GGDC Chairman Dennis A. Uy said in a statement.

Several locators have previously signed agreements with GGDC, including DataLand, Inc., Suyen Corp., SM Prime Holdings, Inc., and Century Properties Group, Inc.

GGDC is aiming to transform CGC into a new business hub outside Metro Manila. Its masterplan includes top-grade office buildings, upscale retail outlets, academic centers, sports centers, an urban park, an integrated resort and casino, and modern support services and amenities.

GGDC is a wholly owned subsidiary of Udenna Development Corp., the property arm of Mr. Uy’s Udenna Corp. The Udenna Group also has interests in petroleum and oil, logistics, infrastructure, education, and convenience stores, among others. — Arra B. Francia

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Philippine Consulate General of New York held a focus group discussion on Foreign ownership and partition issues

Written by LRA Web Mgt.

Published: 30 April 2019

“Filipino-American lawyers and land-owners attended a focus group discussion on LRA functions and land titling in the Philippines presented by Deputy Administrator of LRA Robert Nomar V. Leyretana, at Philippine Consulate General of New York.”

Read more: https://usa.inquirer.net/27399/fil-ams-learn-about-land-titling-partition-avoiding-property-scams-in-ph

 

ALI plans to develop country’s first Sino-PHL industrial park

April 29, 2019 | 12:06 am [ bworldonline.com ]

 

By Arra B. Francia Senior Reporter

AYALA LAND, Inc. (ALI) is riding on the influx of Chinese firms coming to the Philippines as it plans to acquire up to 200 hectares of land in Central Luzon for the development of the first Sino-Philippine industrial park in the country.

ALI President and Chief Executive Officer Bernard Vincent O. Dy said they are in advanced talks with several land owners for the land acquisition, while also speaking with Chinese manufacturing firms to locate in their industrial parks.

“We’re now starting to look, fairly close, in securing a much larger parcel to be able to do, as our chairman mentioned, the first Sino-Philippine joint venture for an industrial park to be able to attract more Chinese locators into the Philippines,” Mr. Dy said in a press briefing organized by its parent Ayala Corp. (AC) in Makati last Friday.

Prior to this industrial park venture, the listed property developer has already been working with one of China’s largest tile manufacturers to locate in one of its existing estates.

Mr. Dy said the Chinese firm has taken up 1.7 hectares in its Alviera Industrial Park in Porac, Pampanga. The estate is recognized as a special economic zone by the Philippine Economic Zone Authority.

“The initial manufacturing plant is now under way, it is going to be in the industrial park in Porac. In about a few months, they should start manufacturing high-end engineered stone in Pampanga, both for domestic consumption as well as for export,” Mr. Dy explained.

AC Chairman and Chief Executive Officer Jaime Augusto Zobel de Ayala noted how the conglomerate also pioneered the development of the first industrial park in the country in partnership with Japanese firm Mitsubishi Corp. in Laguna.

He added that several Ayala units have been partnering with Chinese firms in previous years.

“If you look at the way the Ayala group has engaged with China, it is, I think, probably among the largest in the country,” Mr. Zobel said in the same media briefing.

Mr. Zobel cited Globe Telecom, Inc.’s decade-long partnership with telco giant Huawei, which he said significantly contributed to their telco business’ success.

“Part of the success, I’d like to think, that we have had in the telecommunications business is driven by the relationship we had with Huawei and what they enabled us to do from a competitive point of view.”

Mr. Zobel also said AC Energy, Inc. has used Chinese technology in the rollout of infrastructure in the energy generating space, while AC Industrial Technology Holdings, Inc. has a number of operating facilities in China.

AC reported a net income of P31.8 billion in 2018, five percent higher year on year, after consolidated revenues also grew by 13% to P274.88 billion.

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Filinvest sets P39-billion spending plan

April 29, 2019 | 12:09 am [ bworldonline.com ]

Filinvest Mimosa+ Leisure City is expected to boost Clark’s efforts to become an economic hub in Central Luzon. -- COMPANY HANDOUT

FILINVEST Development Corp. (FDC) has programmed P38.9 billion for its spending plan this year as it accelerates its expansion in Clark, Pampanga.

In a statement issued over the weekend, the Gotianun-led conglomerate said bulk of its 2019 capital expenditure (capex) will be used for Clark projects such as the Clark International Airport, Filinvest Mimosa+ Leisure City, and the first phase of its logistics park in New Clark City.

“Capital expenditure in 2019 is roughly equally allocated between the trading segment of the real estate business and the investment segment, which includes office, retail, hotel, and logistics park developments,” FDC President Josephine G. Yap said was quoted as saying in a statement.

Filinvest Land, Inc. will get bulk of the spending as it starts the construction of Phase 1 of New Clark City spanning 64 hectares. The listed property developer has scheduled to break ground for the logistics, industrial park, and mixed-use project this May, with target completion by 2020.

The company expects locators to start setting up their facilities in the area by early 2020.

For Filinvest Mimosa+, FLI has lined up two office buildings, a lifestyle mall, four residential towers, a retail strip, and a high-end residential project for this year.

FDC’s investments in Clark also include the Clark International Airport, as it is part of the consortium that will handle its operations and maintenance alongside JG Summit Holdings, Inc., Philippine Airport Ground Support Solutions, and Changi Airport Philippines Pte. Ltd.

The planned spending will further support FDC’s target of having 5,000 keys under its hospitality business by 2023. The listed firm has 10 new hotels and expansions in the pipeline, equivalent to about 2,600 additional keys.

FDC currently operates six hotels with around 1,800 keys under the brands Crimson — located in Mactan, Alabang, and Boracay — and Quest Hotel, with locations in Cebu, Clark, and Tagaytay. The company also has two golf courses under its hospitality arm.

Aside from its property and hospitality projects, FDC also has interests in power, banking, and sugar.

Its main asset for the power business is a 405-megawatt clean coal power plant in Misamis Oriental. It has also partnered with French utility firm Engie for three solar rooftop projects that will provide 5 MW.

The banking business through East West Banking Corp. is focusing on consumer loans, with its consumer portfolio rising by 16% in the previous year.

Meanwhile, the company said it milled 900,000 metric tons of cane in 2018, resulting to P2.5 billion in revenues.

FDC booked a net income attributable to the parent of P9.8 billion in 2018, 48% higher year on year. Consolidated revenues also went up by eight percent to P73.3 billion. — Arra B. Francia

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Farm tourism gaining ground in PHL

April 26, 2019 | 7:11 pm [ bworldonline.com ]

LEAN S. DAVAL JR

THE PHILIPPINES’ farm tourism sites have helped boost the country’s tourism potential, as total foreign visitor arrivals attributed to agri-tourism grew by 10.24% in January to May last year.

“Farm tourism sites have boosted Philippines’ tourism potential as the country is now a top agri-tourism destination with foreign visitor arrivals growing by 10.24%,” Rose H. Libongco of the Hotel Sales and Marketing Association International (HSMA) was quoted as saying in a statement.

She said this during a Global Farm Tourism Summits co-hosted by Southeast Asian Regional Center for graduate Study & Research in Agriculture (SEARCA)

“As of January to May 2018, foreign visitor arrivals totaled 3.177 million, a 10.24% growth from the same period in 2017,” it was noted in the statement.

Broken down, 22.2% of tourists come from Korea; 8.68% from Japan; 3.79% from Canada; 3.19% from Taiwan; 2.83% from United Kingdom; 2.39% from Singapore; and 1.92% from Malaysia.

Other countries considered to be top agri-tourism destinations are Taiwan, Hawaii, Tuscany, Grenada, Mallorca, California, and Brazil.

Ms. Libongco said the country is a good agri-tourism destination because of its natural resources and biodiversity; how the country’s farming history is reflected in its folk songs; and Filipinos’ natural hospitality and openness to welcoming visitors.

Some of the top farm tourism destinations are organic farms, nature-friendly farms, and health and wellness farms.

In order to further promote farm tourism sites, she encouraged farm owners to develop websites. “Online availability is important in this social media era. People will find you first online. Online websites establish your credibility as a business,” she noted.

Several local government units have started promoting local tourism, which has greatly fueled local job creation. For one, La Union Governor Francisco Emmanuel Pacoy R. Ortega III said during the event that the province saw a 25% growth in tourist arrivals in 2018 as it is known to be the country’s surfing capital.

There are 23 farm tourism sites in La Union with average income of P25,000 to P60,000 per month. The province’s tourism gives jobs to 100 locals and 50 household members.

To further develop this, the La Union Investment Program has a P25.2 billion budget from 2018 to 2022, which extends help to small and medium enterprises through providing equipment and machinery, post-harvest facilities, and organic farming and construction of roads and other infrastructures. — V.M.P. Galang

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Iloilo City eyes investments, trade links with Quanzhou after international expo participation

April 26, 2019 | 7:11 pm [ bworldonline.com ]

Mayor Jose S. Espinosa III and Consul Gen. Julius Caesar Flores (2^nd and 3^rd from right) join exhibitors at the Iloilo City booth at the 5^th Quanzhou Maritime Silk Road International Brand Expo on April 18-21, 2019. PHOTO COURTESY OF ILOILO CITY LOCAL INVESTMENT AND ECONOMIC PROMOTION OFFICE/RITCHEL A. GAVAN

ILOILO CITY — Officials from Quanzhou, a major port city in China’s Fujian province, are returning to Iloilo City with potential investors and to discuss possible direct trade links between the two cities.

This comes after the participation of Iloilo as the sole Philippine representative at the 5^th Quanzhou Maritime Silk Road International Brand Expo last April 18-21.

“They will be coming in to bring possible investors here in the city,” said Mayor Jose S. Espinosa III, who led the delegation composed of representatives from the Department of Trade and Industry, Filipino-Chinese Chamber of Commerce Panay, Inc., Philippine Chamber of Commerce and Industry-Iloilo, and the Iloilo provincial government.

Iloilo had five booths at the expo promoting local food such as butterscotch and Balai Tablea goods; hablon (local weaving) collection of Jackie Peñalosa, Balai Hablon of Girlie Flores, collection of Hector Gellangarin; and products of the Women United Through Handcrafted Lace and Embroidery.

The Iloilo business sector was personally invited to participate in the event by officials of the Quanzhou Municipal People’s Government during a visit in 2018.

Mr. Espinosa said the city is now looking at China as a top market for local products as well as source of materials, and they aim to achieve this by forging closer bilateral ties with Quanzou.

“Once we tie up, it can lower down the prices of products from China, especially textiles. It will be a really big help on the purchasing power of Ilonggos,” he said.

The international expo was participated in by around 300 exhibitors from over 40 countries and regions, with more than 20,000 professional buyers in attendance. — Emme Rose S. Santiagudo

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Ayala Land prices seven-year bonds at 6.369%

April 26, 2019 | 12:08 am [ bworldonline.com ]

By Arra B. Francia, Senior Reporter

AYALA LAND, Inc. (ALI) has priced its P8-billion fixed rate bonds at a coupon rate of 6.369% per annum, a top official said Wednesday. 

“We are actually quite pleased with the reception of the market,” ALI Chief Financial Officer Augusto Cesar D. Bengzon said in a press briefing after the company’s annual shareholders’ meeting in Makati Wednesday.

“We have a total of eight investment banks. It was the largest underwriting syndicate, and they were able to secure the pricing at the tightest end of the range,” he added.

ALI engaged BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp., PNB Capital & Investment Corp., SB Capital Investment Corp., East West Banking Corp., and ING Bank N.V., Manila Branch as joint lead underwriters and bookrunners for the offering.

The seven-year bonds will be issued on May 6, after which they will be listed at the Philippine Dealing and Exchange Corp.

ALI aims to raise P7.89 billion from the offering to finance several hotel, office, and retail projects.

The issuance represents the first tranche of ALI’s P50-billion debt securities program. The company is scheduled to issue about P15-20 billion from the registration this year.

“We will be tapping the shelf throughout the year. But of course we also have funding coming from our banks so it will be a combination of loans. And we will just tap whatever market is beneficial for the company,” Mr. Bengzon explained.

The fund-raising activity will partially finance ALI’s planned P130-billion capital expenditure (capex) for 2019, as the listed property developer continues to expand its residential, office, mall, and hospitality projects. 

ALI President and Chief Executive Officer Bernard Vincent O. Dy said 95% of the overall capex will be used for projects in the Philippines.

“We believe that there are still a lot of opportunities in the Philippines. We’re not anticipating large investments overseas at least for 2019,” Mr. Dy said in the same media briefing.

The company is currently developing a mixed-use project on a four-hectare property in Kuala Lumpur’s Klang Valley. It is being undertaken by Malaysian firm MCT Bhd., where ALI has a majority stake.

“After that we have been looking for opportunities in the region. Our approach has really been more focused on finding in specific cities that we feel share a lot of similarities with Metro Manila: high urbanization, population growth, GDP per capita in the ten thousand (dollar) level,” ALI Strategic Landbank Management Group Head Anna Maria Margarita B. Dy said. 

ALI’s net income rose by 16% to P29.2 billion, after consolidated revenues also grew by 17% to P166.2 billion.

Shares in ALI gained P1.50 or 3.12% to close at P49.50 each at the stock exchange on Thursday.

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Ayala Land plans to raise P25-26B in country’s first REIT offer

April 25, 2019 | 12:32 am [ bworldonline.com ]

BW FILE PHOTO

By Arra B. Francia Senior Reporter

AYALA LAND, Inc. (ALI) is preparing what could turn out to be the country’s first real estate investment trust (REIT) offering, where it plans to raise about P25-26 billion.

“We filed with the SEC (Securities and Exchange Commission) an Ayala Land REIT; we’re still thinking what the name should be. The intent is to list based on the current regulations which is a minimum public ownership of 67%,” ALI Commercial Business Group Head Jose Emmanuel H. Jalandoni said in a media briefing after the company’s annual shareholders’ meeting in Makati Wednesday.

Mr. Jalandoni said the company has filed for the name change of an existing company, One dela Rosa Development, Inc., into Ayala Land REIT Inc., which will now serve as the vehicle for the REIT listing. ALI has also filed amendments to its articles of incorporation to reflect its intention to file for REITs.

The SEC Office of the Commission Secretary said that it received the company’s application for ALI’s amendments to articles of incorporation on Feb. 15, while the change-in-name notice was submitted on March 28.

The listed property developer will have to file a registration statement for the REIT once it gets clearance from the SEC for the said amendments.

After the SEC, it will then have to get clearance from the Philippine Stock Exchange.

“We feel like it’s a very good vehicle for us. We’ll be able to recycle some capital, but we’re also looking at it as a new business model for us to be able to grow this REIT into another leg for the organization,” ALI President and Chief Executive Officer Bernard Vincent O. Dy said in the same briefing.

The REIT will be anchored on ALI’s office towers located in the Makati Central Business District.

Mr. Jalandoni said they can also use the firm to acquire third-party assets.

“It doesn’t mean that the only assets that we will put in this vehicle are the Ayala Land assets. We could actually explore third-party assets as well to be used into this REIT vehicle,” Mr. Jalandoni said.

The company has engaged the Bank of the Philippine Islands as the transaction’s underwriter.

‘LET’S JUST GO AHEAD AND DO IT’
 
Should the listing push through, this will be the first REIT vehicle in the country 10 years after Republic Act No. 9856, otherwise known as The Real Estate Investment Trust (REIT) Act of 2009, was enacted.

The SEC approved the implementing rules and regulations for the REIT Law back in 2010, which states that a REIT must have a minimum public ownership of 40% on its initial year of listing. This must be raised to 67% on the second year.

Market players previously raised concerns about the high level of public ownership and taxation issues required for REITs.

The SEC has since favored a lower public float of 33%, while the 12% tax on transfer of real properties has been removed under RA 10963, or the Tax Reform for Acceleration and Inclusion Act that took effect in January last year.

However, the SEC has yet to come out with the revised guidelines as the Department of Finance wanted assurance that the funds raised through REITs will not be spent outside the country.

“If they don’t revise, we’re fine because we’re ready to accept. If they do revise we’re also fine. As a company, we said let’s just go ahead and do it,” Mr. Jalandoni said when asked whether they will still push through should the SEC release new guidelines.

“The primary reason is we just want to move forward and test the framework. It’s good for the investing public to have these options.”

Shares in ALI jumped 2.13% or P1 to close P48 each at the stock exchange on Wednesday.

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Building of LRT-1 Cavite extension to start May 6

April 23, 2019 | 11:19 pm [ bworldonline.com ]

PHILSTAR

THE EXTENSION of the Light Rail Transit Line 1 (LRT-1) to Cavite will start construction in early May, the Department of Transportation (DoTr) said Tuesday.

“We’ll have a ceremony on May 6 to signal the start of actual works of LRT Line 1 Cavite Extension Project. We’ll update you on its details in the coming days,” an officer from the DoTr communications department said in a mobile message to reporters.

LRT-1 operator Light Rail Manila Corp. (LRMC) confirmed the information in a text message to BusinessWorld.

“Confirmed. We have a media event on May 6 to launch the start of works, yes,” LRMC Corporate Communication Head Rochelle A. Gamboa said.

LRMC is building an 11.7-kilometer extension of LRT-1 from Baclaran, Parañaque City to Bacoor, Cavite. The added segment to the train line will consist of eight stations: Redemptorist, NAIA Avenue, Asia World, Ninoy Aquino, Dr. Santos, Las Piñas, Zapote and Niog.

The construction is scheduled to run until the fourth quarter of 2021. Once the Cavite extension is operational, it is expected to increase passenger traffic at LRT-1 to 800,000 daily passengers from 300,000 at present.

LRMC is a joint venture of Ayala Corp., Metro Pacific Light Rail Corp. and Macquarie Infrastructure Holdings (Philippines) Pte. Ltd. The company won the P65-billion, 32-year contract to operate LRT-1 in 2015, part of which is the construction of its Cavite extension.

Metro Pacific Investments Corp. is one of three Philippine subsidiaries of Hong Kong’s First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., maintains an interest in BusinessWorld through the Philippine Star Group. — Denise A. Valdez

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Federal Land sees high demand for luxury condominiums in PHL

April 16, 2019 | 12:06 am [ bworldonline.com ]

 

FEDERAL LAND, Inc. is aiming to take advantage of the increasing demand for luxury residential condominiums with its two-tower Grand Hyatt Manila Residences in Taguig City.
A 2019 Branded Residences Report by Knight Frank Global Research showed that the “preferences of the wealthy are diversifying offerings in the market.” It noted there are over 400 branded residences in the world, with 30% found in Asia.

The report attributed the rising interest in branded residences to several factors, such as “developer quality, services, physical amenities, building maintenance and management, and investment yield potential.”

To cater to this demand, the property unit of GT Capital Holdings, Inc. has been building luxury high-rise residences, partnering with internationally known hospitality brands.

Federal Land teamed up with Japanese financial services firm Orix Corp. and Chicago–based multinational hospitality firm, Hyatt Hotel Corp. for the Grand Hyatt Manila Residences, located in North Bonifacio Global City.

The Grand Hyatt condominium and hotel are located within Grand Central Park, Federal Land’s 10-hectare mixed-use development.

“The move to develop condominiums that solely carry the Grand Hyatt brand in Southeast Asia is a response to the next wave of luxury residents, going beyond the amenities and services and extending to 5-star experiences that separate this form of living into a completely new category,” Federal Land said.

Grand Hyatt Manila Residences South Tower, the second tower, offers “hotel-like living expressed in terms of the building’s design that melds style and functionality; spacious units; thoughtful amenities; and resident support such as concierge, housekeeping and security services for utmost comfort and convenience.”

The price of luxury and exclusivity is around P360,000 per square meter for a unit at the South Tower.

“Exclusivity increases as one goes higher — eight units for low zone, four units for mid zone, and two units for high zone. Residents can expect innovative eco-friendly functions and customized furnishings, European no less, within the space,” the company said in a statement.

Homeowners can also enjoy the offerings from the Grand Hyatt Hotel and a Globalist Membership to the World of Hyatt Loyalty Program, which gives the owner special privileges like priority bookings, and reservations to the hotel’s restaurants, such as The Grand Kitchen, The Cellar, The Lobby Lounge, No.8 China House, and The Peak.

Some of its facilities include a glass function room, pool deck and lounge, a teen entertainment zone, and children’s play area.

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BPI makes push to finance ‘green’ buildings despite developers’ worries over cost

April 16, 2019 | 12:04 am [ bworldonline.com ]

 

By Vincent Mariel P. Galang Reporter

MOST developers may think that turning their buildings “green” would be expensive, without seeing the long-term benefits for their business and society as a whole.

Since its launch in 2008, Bank of the Philippine Islands (BPI), through its Sustainable Energy Finance (SEF) Program, has helped over 300 companies, including property developers, pursue more environment-friendly but cost-efficient projects.

As of end of 2018, the program has disbursed P52.6 billion for energy efficiency, renewable energy, and climate resiliency projects. Of this, 20% of the funds were allocated for Green Building projects.

“The green building initiatives of the private sector were triggered by the law because we have a very important business consideration as different project owners build or construct new buildings, we say if you do not comply with the law, you will not be able to get a building permit. You will perpetually be in violation,” Jo Ann B. Eala, head of sustainable energy finance and specialized lending of BPI, told BusinessWorld after the company’s event held at Makati City on April 4.

The Philippine Green Building (GB) Code of 2016 covers hospitals, offices, hotels, and schools with a minimum of 10,000 square meters (sq.m.) floor area, malls over 15,000 sq.m., and residential condominiums over 20,000 sq.m. This sets standards for these infrastructure related to energy efficiency, water and wastewater management, solid waste management, site sustainability, and indoor environmental quality.

Ms. Eala said after the implementation of the law, the number of green buildings in the Philippines more than doubled in terms of the company’s portfolio. For green building projects alone, BPI disbursed P9.6 billion as of end of 2018. The Ayala-led bank is targeting to further grow the program in order to reach more businesses.

“We target to grow at a much faster rate than regular loans … Definitely, more than 10%. If we can 15% (a year)… With the momentum of the green building take-up, I think we could go at a really much faster rate than the regular loans,” she said during the event.

“In terms sustainable energy and sustainable development, we’re looking at probably between 15 to 20% in terms of our target growth. I think it will be accelerating compared to where it was previously because we are seeing increased consciousness among borrowers… and we think that will continue to grow as time goes on,” Eric Roberto M. Luchangco, senior vice president and head for corporate credits products group of BPI.

GREEN BUSINESS
 
Just like any other green initiative, BPI’s green financing program also faced challenges such as businessmen’s perceptions that these types of projects will be very costly.

“The initial challenge was resistance because of the perceived cost without knowing the benefits. Remember, a businessman still looks at the bottomline, so if they are not aware of how much they are to gain also in terms of profitability then it becomes hard,” Ms. Eala said.
In order to encourage more businesses to join, BPI made itself the example. At its head office Makati City, 30-year old chillers were replaced which resulted in annual savings of about 990 megawatt hour (MWh) or about P12 million since 2012. Furthermore, it was able to avoid emission of greenhouse gases (GHG) at 431 total carbon dioxode (tCO2) per year.

Another project is Imperial Homes Corp.’s Via Verde Village in Sto. Tomas, Batangas. It is touted as the first solar-powered with lithium battery, low-cost housing subdivision in the country. It is able to generate 529 MWh per year or P5 million per year. It also has an estimate GHG avoidance at 2,380 tCO2 per year.

“What we hope to do, knowing that there is so much potential in the business sector, is to educate first and encourage more and more private sector participation in sustainable initiatives. This as a whole is mobilizing and boosting private sector participation in protecting the environment but making sure as it is done, it is done in a very successful, well-studied way so that the project will definitely yield the results expected… and will encourage the business sector to continue and make it a sustainable venture,” Ms. Eala said.

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Subway project to boost demand for nearby condos

April 16, 2019 | 12:03 am [ bworldonline.com ]

 

THE completion of Metro Manila’s first subway is likely to boost demand for a residential condominium being developed by DMCI Homes near two proposed subway stations.

“As early as last year, we have already observed big interest on our projects located along the proposed tracks of the subway project,” DMCI Homes Assistant Vice President for Project Development Dennis O. Yap said in a statement on Monday.

The Metro Manila Subway project, which broke ground last February, is expected to be operational by 2025. It is a 36-kilometer subway system that will run from Mindanao Avenue-Quirino Highway in Quezon City to the Ninoy Aquino International Airport Terminal 3 in Pasay City.

Mr. Yap cited DMCI Homes’ Infina Towers as one of the projects that has seen a spike in interest. Located along Aurora Boulevard in Quezon City, Infina Towers is near two proposed subway stations — Anonas and Katipunan Avenue.

Another project expected to benefit due to its proximity to the metro rail system is The Cresmont, located along Panay Ave., South Triangle, Quezon City. The single-tower development will be built adjacent to Quezon Avenue Station of Metro Rail Transit Line 3 (MRT-3).

“We are very positive about the future of the Manila property market with the construction of the subway project. We look forward to bright prospects ahead not just for the company but for the whole industry,” he said. — Vincent Mariel P. Galang

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More condominiums sprouting up outside CBDs

April 16, 2019 | 12:07 am

 

More condominiums sprouting up outside CBDs

1 of 2

Avida Tower Makati Southpoint, located along Chino Roces Avenue, is “within three kilometers of eight major office buildings, seven schools, six commercial areas, six spaces for arts and culture, five hospitals and places of worship.” -- COURTESY OF AVIDA LAND

Avida Tower Makati Southpoint, located along Chino Roces Avenue, is “within three kilometers of eight major office buildings, seven schools, six commercial areas, six spaces for arts and culture, five hospitals and places of worship.” -- COURTESY OF AVIDA LAND

DEVELOPERS are now building condominiums outside of traditional central business districts (CBDs), as land in Makati and Bonifacio Global City become more difficult and expensive to acquire.

“With land prices in the Makati central business district and Bonifacio Global City scarce and prohibitively costly, developers are venturing out of the traditional business districts for their next Metro Manila projects,” Pinnacle Real Estate Consulting Services, Inc. said in a Real Estate Market Insight report for the first quarter of 2019.

Pinnacle identified the Chino Roces area in Makati City as an increasingly popular location for residential condominiums.

Property developers who are already in the area are Avida Land Corp. with its Avida Towers San Lorenzo; Geo Estates Development Corp.’s The Beacon; Vista Land & Lifescapes, Inc.’s Laureano di Trevi; Empire East Land Holdings, Inc.’s San Lorenzo Place; and Federal Land, Inc.’s Paseo de Roces, Oriental Garden Makati and Oriental Place.

New condominium projects are also being built along Chino Roces Avenue. Megaworld Corp. is building Vion Tower which will have 1,051 units and is targeted for completion in 2023. SM Development Corp.’s Red Residences offers 1,100 units, which will be completed by 2022, while DMCI Homes’ Fortis Garden is targeted to be finished on 2022.

Avida Land recently launched Avida Towers Makati Southpoint — a three-tower residential condominium development. The first tower is expected to be completed by 2024.

“Another area is Circuit Makati, which is at the former Santa Ana Racetrack in Carmona, Makati, which is at the northern end of Chino Roces Avenue along the banks of Pasig River. Already we’re seeing plenty of developments in nearby Santa Ana district of Manila,” Pinnacle said in an email.

Property firms are also entering areas where key infrastructure projects have been completed, such as in Taguig City and the C5 corridor in Pasig City and Quezon City.

Ayala Land, Inc. (ALI) and Eton Properties Philippines, Inc. (EPPI) is building a 35-hectare mixed-use estate covering areas in Quezon City (QC) and Pasig City called Parklinks.

Megaworld has committed to spend P35 billion for the development of Arcovia City located in Pasig City in a span of 10 years. Robinsons Land Corp. is developing an IT park called Bridgetowne in Quezon City. — Vincent Mariel P. Galang

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GERI profit up 3% in 2018 on higher residential sales

]]April 15, 2019 | 12:06 am [ bworldonline.com ]

A hotel within Twin Lakes in Batangas is now open to the public. -- GERI

GLOBAL-ESTATE Resorts, Inc. (GERI) saw its attributable profit rise by three percent in 2018, driven by higher sales from its residential projects.

In a statement issued over the weekend, the leisure and tourism segment of Megaworld Corp. said net income attributable to the parent reached P1.5 billion, higher than the P1.45 billion it posted in 2017.

This followed a 21% jump in revenues to P7.5 billion, versus the P6.2 billion it generated the year before.

Real estate sales climbed 21% to P6.4 billion. The company unveiled more residential projects in Twin Lakes in Batangas; Boracay Newcoast; and in Pasig City last year. Its two-tower condominium in Pasig called The Fifth is seen to deliver at least P8 billion in residential sales.

Meanwhile, its rental business realized a 165% uptick in revenues to P427 million, after collecting full-year revenues from Southwoods Mall — its biggest mall to date — located within the 561-hectare Southwoods City township in Biñan, Laguna.

Aside from the mall, the listed firm opened its first two office towers in Southwoods City last year.

“At the heart of GERI’s continuous growth since being consolidated under the Megaworld Group is its expansive land bank, which the company has utilized to develop townships and integrated lifestyle communities that are centered on tourism and leisure,” GERI President Monica T. Salomon said in a statement.

The company’s other tourism estates and integrated lifestyle communities include Sta. Barbara Heights in Iloilo, Alabang West in Las Piñas, Eastland Heights in Antipolo, Rizal, and The Hamptons Caliraya in Lumban-Cavinti, Laguna. These properties cover some 3,000 hectares of land.

“To date, we still have more land to develop, allowing us to explore new opportunities in tourism developments,” Ms. Salomon said.

GERI is part of tycoon Andrew L. Tan’s holding firm, Alliance Global Group, Inc., whose core interests also include liquor, gaming, quick service restaurants, and infrastructure development.

Shares in GERI stood at P1.38 each at the stock exchange on Friday, lower by 0.72% or one centavo from the previous session. — Arra B. Francia

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CLI to launch 29 projects this year

April 12, 2019 | 12:03 am [ bworldonline.com ]

 

CEBU Landmasters, Inc. (CLI) is allocating P13 billion for capital expenditures this year, as it plans to launch 29 projects worth P25 billion.

In a briefing held in Taguig City on Thursday, CLI President and CEO Jose R. Soberano III said of the capex for 2019, 79% will be used for project development in Visayas and Mindanao areas.

“From P10.2 (billion) in 2018, we are projecting 2019’s budget of P13 billion, of which 79% will be on project development,” he said.

Most of the land for the 29 projects has already been acquired, with deals for the rest expected to close within the second quarter.

CLI said it is adding 7,517 residential condominiums units through One Paragon Condo, CM Towers CDO, One Astra Phase 2, and 38 Park Avenue Phase 2. It will also sell house-and-lots at Velmiro Granada, Casa Mira Granada, and Casa Mira South Phase 4.

The company is also increasing its number of hotel rooms to 1,223 through Citadines Bacolod, Citadines Paragon, Patria de Cebu Hotel and Mactan Hotel. It is also planning to boost total gross leasable area to 161,034 square meters (sq.m.) through projects like LPU retail and LPU Office.

With the new projects, CLI is targeting reservation sales to rise by 28% to P12.5 billion and consolidated sales to jump by 25% to P8.4 billion. The company expects net income to grow by 20% for both consolidated and parent to P2.6 billion and P2 billion, respectively.

“We are strongly positioned to sustain our growth in this region. There is a large underserved demand, and CLI will capitalize on its homegrown leadership and diverse product offerings in order to successfully cater to this growing VisMin market,” Mr. Soberano said in a statement.

The VisMin property developer saw its net income surge 72% to P2.17 billion in 2018, while net income attributable to the parent company grew by 36% to P1.66 billion.

CLI’s consolidated revenues increased by 72% to P6.76 billion due to strong sales and the higher number of projects under construction in 2018.

Reservation sales went up by 86% to P8.54 billion, exceeding its P7-billion target by 22%. — V.M.P.Galang

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SEC approves RLC-DMCI Homes joint venture

April 9, 2019 | 12:05 am [ bworldonline.com ]

ROBINSONS Land Corp. (RLC) is teaming up with DMCI Project Developers, Inc. (DMCI Homes) for the development of a multi-tower residential condominium in Las Piñas City.

In a disclosure to the stock exchange on Monday, the Gokongwei-led property firm said it has secured approval from the Securities and Exchange Commission (SEC) for the incorporation of their joint venture (JV) firm — RLC DMCI Property Ventures, Inc.

RLC’s board of directors had initially approved the project in October 2018.

“RLC DMCI Property Ventures, Inc. shall purchase, lease and develop real estate properties situated in Las Piñas City. The proposed project is intended to be a multi-tower residential condominium and may include commercial spaces,” the listed company said.

RLC and DMCI Homes have agreed to pour in P500 million each for the JV firm’s initial capitalization, for a total of P1 billion.

Each party will nominate three officials to form the JV firm’s board of directors. Profits will be equally split between the two companies.

DMCI Homes is the property unit of DMCI Holdings, Inc., which has primarily been developing residential condominium units for the mid-income market in Metro Manila. Its projects include The Celandine and Infina Towers in Quezon City, Fairland Residences in Pasig, and Fairway Terraces in Pasay City.

The Consunji-led developer has allocated P17.9 billion in capital expenditures this year, as it plans to launch 10 projects.

DMCI Homes booked a net income of P3.9 billion in 2018, nine percent higher year on year, due to a one-time gain from the sale of land in Quezon City. Excluding this, core profit dropped by 11% due to higher costs of raw materials and changes in accounting standards.

Meanwhile, aside from residential condominiums, RLC is also a developer of shopping malls, offices, and hotels. It ended 2018 with a total of 51 malls, making it the largest contributor to revenues at P11.94 billion. The residential segment followed, after booking P8.69 billion, 33% higher year on year.

RLC’s residential unit consists of high-rise condominiums within Metro Manila and horizontal properties in the provinces. Its condominiums include The Magnolia Residences in Quezon City and Signa Designer Residences in Makati.

Meanwhile, its subdivisions include Bloomfields Heights Lipa in Batangas, Bloomfields General Santos, and Hanalei Heights in Laoag, among others.

Overall, the listed Gokongwei firm said its net income increased by 40% to P8.23 billion in 2018, following a 31% jump in consolidated revenues to P29.44 billion.

Shares in RLC slipped 0.41% or 10 centavos to close at P24.15 each at the stock exchange on Monday. — Arra B. Francia

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SEC drafts rules for revival of expired companies

April 9, 2019 | 12:32 am [ bworldonline.com ]

By Arra B. Francia Reporter

THE CORPORATE REGULATOR will allow companies whose incorporation papers have expired to apply for revival, following approval of a perpetual corporate term under Republic Act No. 11232, or the Revised Corporation Code of the Philippines.

In a notice posted on its Web site on Monday, the Securities and Exchange Commission (SEC) said it is inviting interested parties, market participants and the investing public to submit their comments on its proposed Guidelines on the Revival of Expired Corporations.
This is in line with the grant of a perpetual corporate term for existing and future corporations under RA 11232, which President Rodrigo R. Duterte signed into law on Feb. 20.

“The guidelines will help clarify how they can petition to revive their previously expired certificate of registration,” SEC Chairman Emilio B. Aquino said in a mobile phone message.
“We have to resolve many cases in the past where, by sheer oversight, they failed to extend their companies’ term of existence,” Mr. Aquino explained.

“It caused grave consequences to their firms, like contending with tax clearances and all. Thus, among the amendments legislated is to grant SEC authority to approve revival of their terms, since direction is towards perpetuity of companies.”

The proposed guidelines will allow companies to submit a petition to revive corporate existence, so long as the petition was approved by a vote of at least two-thirds of outstanding capital stock.

The draft rules provide that the petitioner must state changes in the composition of its stockholders, or members for non-stock corporations, since the time its incorporation papers have expired.

The petitioner must also have no intracorporate controversies at the time of the filing of the petition.

Revival of the firm’s corporate term must also not prejudice third persons or any government agency.

The petitioner must submit several documents to the SEC alongside its petition for revival, including its certificate of incorporation and articles of incorporation, a general information sheet as of the date of the expiration of its corporate term, as well as its audited financial statement as of and for the year immediately preceding the expiration of its corporate term, among others.

The draft rules exclude companies whose certificates of incorporation have been revoked, as Section 11 of the revised corporation code provides only for the revival of a “corporation whose term has expired” not terminated.

A company whose certificate of registration has been suspended and has expired may be allowed to revive its corporate existence. Such firm has to file a proper petition to lift its suspension and settle corresponding penalties. The firm may then file for the revival of its corporate existence.

Banks, banking and quasi-banking institutions, pre-need, insurance and trust companies, non-stock savings and loan associations, pawnshops and corporations engaged in money service businesses whose terms have expired may apply for revival, provided that they have secured the favorable recommendation of the government agency governing them.

Once approved by the commission en banc, the firm will be issued a Certificate of Revival, which shall provide for a “perpetual term of existence unless a specific corporate term is stated by the applicant corporation in the verified Petition for Revival.”

The SEC earlier said that a perpetual term of existence will eliminate the possibility of legitimate, productive businesses from prematurely closing down just because they failed to renew their registration.

The commission is accepting comments for the draft guidelines until April 26.

 REQUEST FOR COMMENTS 

ON THE PROPOSED GUIDELINES ON THE REVIVAL OF EXPIRED CORPORATIONS

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