Wednesday, April 25, 2012
A NEW player in the real estate industry is setting aside P1.5 billion as capital expenditures (capex) for its four residential projects for the mid-range market starting this year.
According to Michelle Yu, chief executive officer of Landtraders World Properties Corp., the four projects, three condominiums and a townhouse, will have a total of 2,000 units that will be completed in two years.
Yu said the company will source its funds from banks and in-house financing.
Yu, whose family business is importation of used/surplus trucks, engines, under chassis parts, gen sets and forklifts since 1988, ventured into real estate because of the industry’s strong growth performance.
“We wanted to explore other businesses and one of industries we saw that is growing so fast now is the real estate industry,” Yu said.
She said almost all of their clients in their surplus business, New Partraders Inc., have also ventured into real estate.
According to the Bangko Sentral ng Pilipinas, the steady growth of overseas remittances and the continued growth of the business process outsourcing industries have fueled the growth of the property market in the Philippines.
Landtraders’ flagship project is San Marino Residences, a 420-unit, 20-storey residential condominium on J.de Veyra Avenue at the North Reclamation Area.
Yu said the company invested P520 million for the construction of the project, which will initially cater to the mid-range market with unit prices of P1.4 million for units with 21-22 square meters of space.
Yu said one selling proposition of the project is its location. “San Marino is right across everything like shopping centers, the airport, schools and the port,” she said.
Yu said their company is the first to offer a cheaper rate for condo units in the Cebu market.
“The aim here is also to give a chance to low-income earners to own condominium units,” she said.
San Marino Residences will have a modern Mediterranean-style building. Yu said that despite the low price they are offering, the company will invest on the quality of the project.
“The project management team is headed by my father-in-law, who has a strong background in construction, to ensure the foundation of the project considering its location,” Yu said.
She said they sold 40 units on the first day of their pre-selling period. She said pending inquiries stood at 60 to 80 percent.
San Marino Residences targets local buyers, especially from the overseas Filipino market, young professionals and those from neighboring islands like Bohol and Leyte who wish to work, live or study in Cebu.
Aside from San Marino Residences, Landtraders is currently planning the construction of three more projects, such as the 89 townhouse units to be put up in Mactan and two condominium projects at Andres Abellana and the North Reclamation Area, which will have 600 units and 700 units, respectively.
Published in the Sun.Star Cebu newspaper on April 26, 2012.
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