By Ehda M. Dagooc Updated January 26, 2009 12:00 AM
Due to the volatile economic condition, Metrobank's real estate arm, Federal Land Inc., (FLI) puts on hold its planned projects for Cebu.
"This time of crisis gives us a 'breathing space'. It's time to rock out brain and spend more time on planning anticipating for better economic environment ahead," said FLI president Alfred Ty in an interview.
He said instead of pursuing its plan to start the development of idle property within the Marco Polo Plaza Cebu property, the company is still holding on and takes a pause "instead of rushing it."
While the company spends on the development of its hotel project in Metro Manila, building a Hyatt Hotel in Global City, it likewise continues to expand its land bank for its future Cebu projects.
Supposedly, FLI is going to start the construction of its expansion plan in Cebu by kicking off with its planned overlooking residential service apartments, and condominiums late last year, however the company decided to shelve off the plan due to the global economic meltdown.
Ty was referring to the two-hectare remaining property that is part of Marco Polo Plaza Cebu state, fronting the hotel, which used to be the location of the then famous restaurant "Lantaw" operated by the defunct Cebu Plaza Hotel.
Also, he mentioned that FLI is looking at properties in Cebu, including Mactan Island, and neighboring areas and provinces in Cebu as part of its land-banking moves, while expressing confidence that the economy may get better in short and medium term period.
In fact, he said that there is a good possibility that the global economic crisis will start to recover towards the middle of third quarter of this year, as countries that are severely affected like
United States and Europe have huge reserves to rescue their deteriorating economic strength.
Now, that the economic slowdown is still obvious, the company is spending more time for planning.
Marco Polo Plaza Cebu, is the first hotel development of FLI in the Queen City of the South. The company is continuously looking for opportunities for this particular plan, but nothing is yet formal.
Metrobank acquired the five-hectare property, including the hotel facility previously owned by Pathfinders Corporation due to heavy loan exposure, through foreclosure.
So far, FLI had only maximized about three hectares of the entire property. The Ty-family led by Alfred's parents George and Mary Ty was in Cebu Friday night to grace the thanksgiving ceremony of Metrobank to its Cebuano clients, as well as the official announcement of Marco Polo Plaza Cebu, as the first five-star City-based hotel in Cebu.
Unlike other giant developers that are braving the crisis, and continue to pour in investments amid the financial difficulties, Ty said the company is exercising careful moves, as the fate of the global economic meltdown is still unpredictable.
He said it's hard to speculate and give specific target timeframe for the implementation of planned projects [especially in Cebu], he said reiterating that FLI is employing "plan and see" attitude.
"We have it all figured out, but we take advantage of this time [of crisis] to plan more," he concluded.
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