SAMUEL LAO BLOGSITE

Megaworld allocates P45B for Bonifacio project

2012-01-26T14:15:00.000-08:00

WEDNESDAY, 25 JANUARY 2012 19:14 MIGUEL R. CAMUS / REPORTER

MEGAWORLD Corp. is investing P45 billion over the next 20 years to develop the 15-hectare integrated township project in Bonifacio Global City in Taguig.

In a statement on Wednesday, Megaworld said the Uptown Bonifacio project will feature up to 18 towers, offering a total potential development of 500,000 square meters (sq.m) of residential space, 400,000 sq.m of office space and 90,000 sq.m of retail space.

This includes the 45-story One Uptown Residence, the community’s first residential offering, valued at P7.5 billion and a four-tower 140,000 sq.m corporate office block valued at P12 billion, the statement showed.

Learn whats new in Cebu now, click here

“Uptown Bonifacio, designed to be the country’s newest business district, will take Megaworld’s live-work-play lifestyle to new heights,” said Noli Hernandez, Senior Vice President for marketing.

Megaworld shares declined 4.3 percent to P1.78 each on Wednesday, giving it a market value of P45.89 billion.

The predominantly mixed-use Uptown Bonifacio is situated in the northern district of Fort Bonifacio which extends to Kalayaan Avenue, and is near the British, Japanese and American international schools.

The builder added that the district will be constructed under the BERDE (Building for Ecologically Responsive Design Excellence) rating system.

“We will continue our best efforts to ramp up the construction of our next generation “green” office developments in Uptown Bonifacio that will help generate at least 80,000 new jobs in the area.” Jericho Go, First Vice President for business development and leasing division, said.

Megaworld reported earlier that net income in the nine months through September rose to a record P4.08 billion, up 36 percent year on year, on the back of continued strong residential real estate sales and business process outsourcing office rental income.

The builder is a unit of holding firm Alliance Global Group Inc., which is involved in gaming and tourism, liquor manufacturing and fast food services
.

5-year public investment projects to cost government P4.2T

2012-01-26T14:13:00.000-08:00

MONDAY, 23 JANUARY 2012 22:15 CAI U. ORDINARIO / REPORTER

The National Economic and Development Authority (Neda) estimates that the country’s Public Investment Program (PIP) may finance 1,900 projects until 2016.

In an interview, Neda Deputy Director General for Investment Programming Rolando G. Tungpalan said the figure already contains all infrastructure and microlending projects.

The Neda earlier said the PIP will cost around P4.2 trillion. Around P3.7 trillion of this amount will be used to finance various infrastructure projects while the remaining will be used for the government’s microlending program for small and medium enterprises.

Learn whats new in Cebu now, click here

But Tungpalan said the number of projects may still change since President Aquino may ask some individual but related projects to be lumped together to come up with bigger programs.

“There are 1,900 items in the PIP, that’s the discreet number. But if we were to repackage it by lumping projects together to come up with bigger programs, the discreet number will be less but the impact will be greater,”Tungpalan told the BusinessMirror.

The 2011-2016 PIP, the country’s investment blueprint, contains all the projects that the current administration intends to complete until the end of the President’s term to achieve the goals set in the Philippine Development Plan (PDP).

Tungpalan said that while the final draft of the PIP has been presented to the President, the government is still in the process of finalizing it. Only when the PIP document is signed by the President can it be made public.

Neda Director General Cayetano W. Paderanga Jr. said the projects contained in the PIP may not be the only infrastructure and microlending projects to be implemented by the government.

This could increase the government’s investments in the next four to five years of the Aquino administration.

“This is an alive plan, yung program. Things are added as we go along,” Paderanga said. “Wala pa ’yung meeting. The meeting will be toward the end of January.”

The 2004 to 2010 MTPIP required an estimated P2.13 trillion. The lion’s share went to investments for the economic growth and job creation theme, which amounted to P1.49 trillion.

Under this theme, some P82.8 billion was earmarked for trade and investment; agribusiness, P357.1 billion; environment and natural resources, P198.5 billion; housing construction, P264.6 billion; and infrastructure, P571.7 billion.

This is followed by the combined themes on basic needs and education with a total investment requirement amounting to P347.6 billion over the medium term.

The programs and projects include the chapters on basic needs, which cost P161.3 billion; automated elections, P14.8 billion; peace process, P11.5 billion; peace and order, P26.7 billion; rule of law, P1.8 billion; education, P122.4 billion; science and technology, P9.2 billion; and culture, P1.7 billion.

The energy theme will require P262.5 billion worth of investments while P27.7 billion is programmed for the projects and programs under the anti-corruption and good government theme
.

BIR firm on REIT law stand

2012-01-26T14:12:00.001-08:00

MONDAY, 23 JANUARY 2012 22:20 MIGUEL R. CAMUS / REPORTER

The Philippine Stock Exchange (PSE) is ready to restart talks with the government on the Real Estate Investment Trust (REIT) law, which has failed to take off after the Department of Finance (DOF) last year imposed stringent tax and public ownership requirements.

But this could prove difficult with the Bureau of Internal Revenue (BIR) insisting that further discussions regarding REITs are no longer necessary, BIR commissioner Kim Jacinto-Henares said.

“We have already come out with a revenue regulation. And I think that’s it. We cannot keep going back there,” Henares said in an interview.

Learn whats new in Cebu now, click here

PSE president Hans Sicat signaled last week that the bourse plans to reopen discussions given the dearth of applications for REITs.

“We have zero [ REIT applications] right now. There is no participation from any of the developers,” Sicat said at the sidelines of The Urban Land Institute’s presentation of emerging real estate trends in Asia held in Makati City.

“There is no way about it but to bring REITs back up for discussion. Hopefully we can get to a structure that is more market friendly,” he said.

The BIR’s tax regulations for REITs, which contained a contentious provision that one time property transfers will be subject to the 12 percent value added tax (VAT), thus increasing the costs for establishing a REIT firm, was widely blamed by market participants as a major reason property developers shunned the law.

A second issue, the requirement for a REIT to sell at least 67 percent of its outstanding capital in three years, was separately imposed by the Securities and Exchange Commission (SEC), but only under the directive of the DOF.

Those provisions caused major developers like Ayala Land Inc., Robinsons Land Corp. and SM Prime Holdings Inc. to shelve plans to tap the REIT law, forfeiting an estimated $1 billion that could have been raised in the capital markets.

Sicat said the PSE would continue to push for the removal of VAT and possible compromises on the public float requirement.

He said discussions would likely be brought up with the Capital Market Development Council, a public-private sector outfit that is co-chaired by the heads of the DOF, SEC and a private sector representative, namely, Eduardo Francisco of BDO Capital and Development Corp.

For his part, Francisco confirmed that early moves are being made to reopen REIT talks with the government.

“A small group of CMDC members are working on it. We hope to remove VAT but we looking at other tax angles also,” Francisco said without elaborating.

The REIT law provides a framework for companies to establish and sell shares in public real-estate trusts for assets like shopping centers or office buildings that will pay dividends to shareholders.

Henares said earlier that the agency implemented the tax measures for REITs fairly and any move to adjust these will be done only if lawmakers amend the REIT Act.

Angara hits BIR move on REIT law

2012-01-26T14:11:00.001-08:00

TUESDAY, 24 JANUARY 2012 22:25 BUTCH FERNANDEZ / REPORTER

Sen. Edgardo Angara yesterday said Internal Revenue Commissioner Kim Henares appears to have “taken over” the power of Congress by virtually rewriting the Real Estate Investment Trust (REIT) law long passed by the Senate and the House and enacted by Malacañang.

Angara, the law’s principal author, cited reports about the insistence of the Bureau of Internal Revenue in imposing stringent tax requirements in the law’s implementing rules that were not included in the measure that, he noted, could have raised over P43 billion in the capital markets if implemented earlier.

Learn whats new in Cebu now, click here

He said the REIT was crafted by Congress to enable the public to invest in income-generating real-estate assets and eventually derive a return from it. The early establishment of the REIT in the country would have “provided liquidity to the real-estate market, unlocked capital and eventually helped the Philippine economy” as envisioned by lawmakers when they passed the law.

“She is usurping the power of Congress,” Angara told the BusinessMirror, citing her insistence on imposing the 12-percent value-added tax on REIT transactions, a move seen to have dampened interest of major developers such as Ayala Land Inc., Robinsons Land Corp. and SM Prime Holdings Inc.

Besides the imposition of the VAT that was seen to increase the cost of establishing REITs, the Department of Finance also insisted requiring REITs to sell 67 percent of its outstanding capital in three years, prompting developers to shelve plans to avail themselves of the REIT law.

Angara said that Henares, in imposing the conditions, was effectively “blocking the implementation” of the REIT law.

He also accused Henares of “impounding a law that has already been thoroughly debated in both chambers of Congress.”

He said that if the administration really wanted to amend the REIT law to accommodate the concerns raised by Henares, “let the President write to Congress about it and we will pick it up from there.”

ALI remains ‘optimistic’ for 2012

2012-01-26T14:08:00.000-08:00

SUNDAY, 22 JANUARY 2012 18:00 MIGUEL R. CAMUS / REPORTER

PROPERTY developer Ayala Land Inc. (ALI) said profits in the first nine months of 2011 were likely sustained in the fourth quarter as it sets an “optimistic” outlook for the current year, its president Antonino Aquino told reporters in a chance interview last week.

ALI, the Philippines’ largest builder in terms of market value, earlier reported that net income in the nine months to September rose 33 percent to P5.23 billion. Revenues were up 17 percent to P32.63 billion while pre-sales, an indicator for future revenues, hit P38.9 billion.

Learn whats new in Cebu now, click here

Aquino declined to provide details as the developer has yet to release official financial results for the period.

ALI is a full-range property developer with divisions selling residential lots and condominiums in addition to operating shopping malls, office and hotels.

Aquino said ALI remains optimistic for the current, mirroring the outlook for the country’s real-estate sector.

Some analysts are already pointing to easing worries over the reported oversupply in certain vertical residential segments given the Philippines’ massive housing backlog. These concerns helped temper demand for property stocks in 2011.

Additional stimulus this year would come from easing monetary policy with the Bangko Sentral’s recent decision to cut its benchmark interest rate by a quarter of a percentage point to 4.25 percent.

Low interest rates should lead to low monthly amortization on housing loans, making home purchases affordable for more buyers, stock brokerage firm CitisecOnline said in a January 20 research note. Despite the huge supply, we are confident that property demand will remain robust this year.

ALI shares rose 2.74 percent to P17.98 each on Friday, giving it a market value of P234.16 billion.

The builder has risen almost 14 percent in two weeks, faster than the property subindex, which has gained 11.3 percent since January 6
.

CBRE says property glut ‘not likely’ in 2012

2012-01-26T13:59:00.000-08:00

WEDNESDAY, 25 JANUARY 2012 19:06 RIZAL RAOUL REYES / CORRESPONDEN

THE MUCH-FEARED glut in the property sector is not likely to happen, said property management and consulting firm CB Richard Ellis (CBRE) Philippines, as the industry is event expected to set another banner year in 2012 and continuing growth in the succeeding years.

In a press briefing held Wednesday, Jose Luis Matti III, Executive Director for asset services group at CBRE Philippines, said property developers are now wiser and more cautious in implementing their projects. “The developers are prepared for this because they have installed systems against a scenario on glut. A lot of the developers were burned in 1997. But as long as they keep in mind the fundamentals, they are safe.”

Learn whats new in Cebu now, click here

The property sector was one of the major casualties of the 1997 Asian financial crisis. A lot of condominium projects in Metro Manila were abandoned by developers as capital dried up.

Matti said developers are also adopting a prudent position in marketing their products. He pointed out that the current group of developers will only commit to a groundbreaking when they have initially pre-sold 50 percent of the total units.

In his presentation, Matti said the trend toward vertical or condominium living continues to rise as more buyers are opting to buy units in the metropolis mainly due to accessibility to workplaces. For this year, Matti said around 15,000 units are expected to be launched in the Metro Manila residential market.

This would rise to 25,000 units in 2013 and grow further to 35,000 units in 2014. Around 15,000 and 10,000 units are expected to be finished in 2015 and 2016 respectively.

The reduction in 2015 and 2016 is attributed to the completion of the projects launched in 2012 and 2014.

For his part, CBRE Philippines Vice President for corporate estate services Joey Radovan noted there was even an observed increase in rental charges in the metropolitan area. The highest rental increase was seen in Alabang with a year-on-year change of 12.91 percent (P480.98 per square meter in 2010 to P543.09/sq.m in 2011), followed by Quezon City’s 9.25 percent (P480.98/sq.m in 2010 to P537.21 in 2011), Makati’s 7.76 percent (P779.87/sq.m in 2010 to P840.35), Fort Bonifacio’s 7.15 percent (P650.87/sq.m in 2010 to P697.43/sq.m in 2011), and Ortigas’s 1.39 percent (P541.90/sq.m in 2010 to P549.44/sq.m in 2011).

Radovan said increasing rental rates in 2011 have been largely a result of increasing demand for office space by (business process outsourcing), traditional offices, and the lack of new office supply in 2011.

“Furthermore, vacancy rate remained below 5 percent since the second quarter of 2011. Upcoming supply in Metro Manila which will become leasable in 2012 is 854,660 square meters,” said Radovan.

According to CBRE Philippines, a total of 259,380 residential condominium units have been launched from 2000 to 2011. With the exception of 2005 and 2009 when units launched dropped by 35 percent and 4 percent, total number of units launched on a yearly basis has been steadily increasing. Last year alone showed a 29-percent increase from 2010 with 57,979 units launched—reflecting the strong demand in the residential sector.

In the press briefing, CBRE Philippines Chairman, Founder and Managing Partner Rick Santos said the property sector would continue to grow in 2012.

“The Philippine real-estate market moves counter-cyclical to the European and US markets—driven by outsourcing,” said Santos.

Government underspending, exports decline resulted in 3.6 to 4% growth last year: Neda

2012-01-26T13:53:00.000-08:00

THURSDAY, 26 JANUARY 2012 19:43 CAI U. ORDINARIO / REPORTER

DUE to the government’s underspending and the lackluster growth in exports, the Philippine economy may have grown below its historical average by posting a growth of only 3.6 percent to 4 percent in 2011.

National Economic and Development Authority (Neda) Assistant Director General Ruperto Majuca said the economy may have also posted a growth of around above 3.2 percent to a growth slightly below 5 percent in the fourth quarter.

Learn whats new in Cebu now, click here

“Overall, we expect full year GDP growth to hover around 3.6 percent to 4 percent. However, we underscore that we make these forecasts—both quarterly and yearly—amid an uncertain economic environment, as many of the economic variables are in a state of a flux, and it is difficult to say with certainty where things would eventually settle,” Majuca said.

The Neda official said gross domestic product (GDP) growth last year may have been dragged by the lackluster performance of the agriculture sector which only posted a growth of 2.34 percent due to the typhoon damage incurred by the sector due to Typhoons Pedring, Quiel and Sendong.

Majuca said this will particularly impact fourth quarter growth since farm growth posted a contraction of 2.11 percent due to the typhoons. Palay in the fourth quarter posted a contraction of as much as 8 percent.

Former Budget Secretary Benjamin Diokno said the fourth quarter performance of the agriculture sector was a “big blow” to GDP growth in the quarter. He expects the sharp decline in agriculture growth may not be offset by higher and faster public spending.

“A big blow to the desired GDP growth of 4 percent for Q4 2011. A full year agriculture growth of 2.34 percent implies that the agriculture sector contracted by 3.7 percent in the fourth quarter last year; the desired 3.5-percent growth implies that the sector expanded by 0.9 percent. This sharp decline in agricultural output in the fourth quarter cannot be offset by higher and faster spending in public infrastructure, assuming the latter is true,” Diokno said.

The industry sector has also been weak as evidenced by the contraction in export growth. In the January to November 2011 period, the country’s merchandise exports has posted a contraction of 5.6 percent. In November alone, exports posted a contraction of 19.4 percent, according to the National Statistics Office (NSO).

What supported growth, Majuca said, was the expected growth in the services sector. It can be noted that the sector has been the main source of growth of the GDP due to the robust performance of private services which includes the business-process outsourcing industry.

RLC plans 4 budget hotels in H1

2012-01-26T13:16:00.000-08:00

By Zinnia dela Peña (The Philippine Star) Updated January 27, 2012 12:00 AM

MANILA, Philippines - Robinsons Land Corp. (RLC) is accelerating the construction of budget hotels with plans to open four in the first half this year in order to take advantage of rising foreign visitor arrivals and domestic tourists travelling across the archipelago.

In a statement, RLC said the new hotels, under the Go Hotel brand, will rise in Puerto Princesa, Palawan; Dumaguete, Tacloban and Bacolod.

The first Go Hotel located at the Robinsons Pioneer Cybergate complex in Mandaluyong City, opened in 2010, housing 223 rooms.

Learn whats new in Cebu now, click here

By end-June, RLC will have five Go Hotels with a total of 639 rooms.

Go Hotel is the fifth hotel property of RLC next to the 285-room Crowne Plaza Galleria Manila, 263-room Holiday Inn Galleria Manila, 210-room Cebu Midtown Hotel and the 108-room Summit Ridge Hotel Tagaytay.

RLC is opening its Go Hotel in Puerto Princesa next month, carrying over the same pricing concept.

“Travelers will be rewarded with low rates just by booking significantly early at the hotel’s website,www.gohotels.ph, “ RLC said.

Go Hotel general manager Elizabeth Gregorio said they’re very much excited about the Palawan branch, most especially because Puerto Princesa is one of the most popular tourist destinations in the country.

Puerto Princesa, known for its beautiful beaches and friendly locals, has recently had its very own Underground River included in the new seven wonders of the world and is also known for being the cleanest and greenest city in the Philippines.

Gregorio said RLC is also set to open its mall in Palawan by summertime.

Although it has trailed behind many of its neighbors in terms of tourist arrivals, the country is hoping to regain its place as one of the top five destinations within Asia. The tourism department has raised its foreign tourism arrival target for 2012 to 4.1 million from 3.7 million.

Major developers have been stepping up their presence nationwide by establishing new residential, office, retail and hotel projects. This trend is seen to continue this year with new developments seen in key locations such as Davao, Cagayan de Oro, Boracay, Palawan, Clark and Subic.

The expansion of the liberalized airline industry has likewise boosted tourist arrivals.

‘PH still has room for growth’

2012-01-26T13:09:00.000-08:00

By Katlene O. Cacho

Thursday, January 26, 2012

DESPITE global uncertainty, emerging economies like the Philippines still has room for growth this year.

Cebu, one of the country’s thriving local economies, should bank on its assets to sustain its growth, a Cebuano economist said.

Learn whats new in Cebu now, click here

Speaking before an economic forum, Cebu Business Club (CBC) executive director Perry Fajardo said Cebu should take advantage of its assets if it wants to grow more despite the economic problems of major economies abroad.

He said Cebu should bank on its strategic location, strong outward orientation as manifested by its large export manufacturing base, BPO centers, tourist destinations, strong local entrepreneurship, skilled and talented human resources and strong health,
financial and services sector to withstand economic challenges.

But Fajardo said that with the problems currently faced by the United States and Europe and the possible slowdown in China, countries like the Philippines are affected because its economic activities are tied with these economies.

Not immune

With Cebu’s exposure in the global market, it is still not immune from the continuing global economic slowdown. Fajardo said foreign tourist arrivals may slacken, exports may fall and BPO and foreign direct investments might be affected.

But he stressed that despite the uncertainty and weak outlook of the global economy, emerging economies will be the new engine of global growth.

“On the average, we will grow faster than the global growth rate,” he said.

Fajardo, citing the baseline scenario of the UN World Economic Situation and Prospects 2012, said the global gross domestic product (GDP) would grow by 2.6 percent this
year, slower than the estimated growth rate of 2.8 last year.

Developed economies like the US, Japan and Europe would likely remain at 1.3 percent this year similar to the estimated forecast in 2011.

Developing economies, on the other hand, is projected to post a 5.6 percent growth in 2012, still slower than last year’s six percent growth.

Philippines is projected to grow by 4.4 percent this year, slightly higher than last year’s estimated forecast at 4.3 percent.

On the downside, Fajardo said the world economy might post a growth of just 0.5 percent if economic problems in US and Europe remain unresolved. He said developed economies may post a negative growth while developing countries will log a 3.8 percent growth.

Looming recession

“There could be a looming recession in developed economies,” he said.

But the country’s economic managers recently announced they were keeping this year’s growth target at 5.5-6.5 percent and six to seven percent growth by 2013 on the back of the election period, global recovery, acceleration of public-private partnership (PPP) projects and the efficient disbursement of the government.

Despite global concerns, Fajardo said Cebuanos should remain upbeat with more opportunities in the areas of non-voice and Knowledge Process Outsourcing (KPO) services and domestic tourism.

“Tourism should move now to the small towns and cities to show more of what we have and to create jobs in the rural areas,” he said.

Fajardo was one of the speakers in the Views and Prospects 2012 forum organized by the Mandaue Chamber of Commerce and Industry and CBC at the Casino Español on Tuesday.

Published in the Sun.Star Cebu newspaper on January 27, 2012.

Filinvest assures projects to go on

2012-01-25T17:27:00.000-08:00

1/26/2012

THE discovery of 23 World War II vintage bombs in Kawit Island, South Road Properties (SRP), won’t affect ongoing projects by developer Filinvest Land Inc. there, a company official said yesterday.

In a text message sent to Cebu Daily News yesterday, Filinvest Land Inc. vice president Tristan Las Marias said their projects in the SRP, including a white-sand beach resort in Kawit Island, will go on as scheduled.

Las Marias said he trusts that the city government can handle the situation properly without disrupting ongoing works in the area.

Learn whats new in Cebu now, click here

Filinvest Land Inc. broke ground in SRP for their 50.6-hectare development in November 2010.

The groundbreaking was held only three months after they officially announced and launched their joint P25-billion commercial development project with the city.

The joint venture is scheduled for completion within 10 to 15 years, which Las Marias said is still on track.

The P25-billion project is being developed by clusters starting with a six-hectare lot, a residential cluster called Amalfi Oasis.

Amalfi Oasis will have nine L-shaped five-story buildings with 150 units each.

Las Marias said a total of 40 hectares of the whole development will be for residential subdivisions.

A 10-hectare commercial strip called Il Corso located across the road and facing the sea will be developed within the next three to four years at an estimated investment of P3 billion.

Within Il Corso is a planned “themed park” concept that Las Marias said will become one of the future attractions in Cebu for tourists.

Las Marias said a marina in the commercial strip area will feature a galleon and an ampitheater.

“We have already asked assistance from experts in Singapore to help us realize this project and have met with The Galleon officials and wrote them a letter asking for their support and assistance for this project,” he said. /By Aileen Garcia-Yap, Reporter

Tomas confirms run against Rama

2012-01-25T17:25:00.000-08:00

1/26/2012

MORE than a year away from the next elections, Rep. Tomas Osmeña of Cebu City's south district listed names in his lineup and reiterated that he will run against Mayor Michael Rama.

"I’m going to win the election anyway, I think, so I will be running for mayor," Osmeña said.

He also said that most likely, Vice Mayor Augustus Young will be his running mate and the complete slate of the Bando-Osmeña-Pundok Kauswagan (BO-PK) lineup is almost complete.

Aboitiz land new project in Cebu, click here

Osmeña said next year's election will put an end to Rama's political career.

"He is in danger of suffering a total eclipse especially in the north. Raul del Mar is so angry at him because of his comments on the flyover issue. Raul will pound him," Osmeña told Cebu Daily News.

Osmeña further said they are having a little problem in choosing whom to field as south district representative.

He said third-term councilor Jose Daluz and his wife and first-term councilor Margot Osmeña are popular choices among BO-PK leaders and supporters in the district.

However, both are hesitant to run for the post.

"BO-PK leaders and barangay officials do not have objections about making Councilor Daluz run but he (Daluz) is reluctant so we will not force the issue. Another dark horse in the south is Margot but she is also reluctant," Osmeña told CDN.

BO-PK is left to choose between third-term councilor Rodrigo Abellano and lawyer Aristotle Batuhan.

While Batuhan is not a member of the BO-PK, he is allied with Liberal Party (LP) of President Benigno Aquino, which Osmeña's BO-PK supported in the 2010 presidential elections.

"It is quite confusing in the south because the leaders are divided. In the end, it will still be the people who will decide," he said.

Osmeña said Abellanosa and Batuhan have their share of supporters among the BO-PK leaders and barangay officials.

When elections come, he may have to settle the issue on whom to support between Abellanosa and Batuhan.

Abellanosa already made his intentions to run for Congress known when he invited south district barangay officials to his birthday party last month.

Batuhan, on the other hand, said he would explore a possible alliance with either Osmeña or Mayor Rama, who is also an LP member, in the coming elections.

American broker works on Cebu realty database

2012-01-25T17:18:00.000-08:00

Thursday, January 26, 2012By Mia A. Aznar

NOTING something missing from the local real estate industry, an American real estate broker is planning to introduce a multi-listing service in the country this year.

George B. Flessas, who recently paid a visit to Sun.Star Cebu, explained a multi-listing service will benefit local real estate brokers, agents, developers and financiers by allowing them access to an information database.

Learn What's new in Cebu Now, click here

Aside from properties up for sale, Flessas said the database will contain data needed for continuing education, legal forms and contracts needed in official transactions, and appraisals in certain areas.

While he will give a sneak preview to local real estate brokers this Friday, the project will officially begin operating by April yet.

Herbert Buot, president of the Chamber of Real Estate and Builders Association, Inc. (Creba), said the service will benefit them greatly, as it will give interested buyers from outside the country access to properties that are for sale in the Philippines.

Buot said Cebu has a very high potential to attract foreign property buyers, especially retirees. He explained that many find Cebu appealing as a retirement destination because of its central location, access to modern amenities and cheaper costs compared to Metro Manila.

He added that they felt privileged that Flessas thought of Cebu first, saying even engineers, contractors, architects, accountants and lawyers whose clients are in real estate will benefit from the service.

Pilot area

Flessas said he made Cebu the pilot area because he found it easier to do business and meet people here to support the project.

Eventually, he plans to offer the service to real estate sectors in Metro Manila and other parts of the country.

Though he tied up with Creba for this endeavor, Flessas said that members of other real estate broker associations and those who do not belong to organizations can access the multi-listing service.

To access the service, a P1,200 application fee is required.

Buot said the fees are minimal and he believes anyone in the real estate industry will be thankful to be able to use such a service.

Published in the Sun.Star Cebu newspaper on January 26, 2012.

Get ready for transformations, feng shui adviser tells forum

2012-01-25T17:17:00.000-08:00

By Katlene O. Cacho

Thursday, January 26, 2012

WOOD-BASED industries such as publishing, fashion, agriculture, flowers and plantation, among others, will be the luckiest in the year of the Water Dragon, a feng shui expert said.

During her visit to Cebu last Tuesday, Marites Allen of World of Feng Shui Philippines said that based on feng shui, 2012 will be a transformative year, with the promise of growth and political and economic turnarounds.

According to Allen, the year indicates luck in asset growth for wood-related businesses.

Businesses related to the earth element, such as real estate, will continue to prosper this year, she also said. Business involving the water element, on the other hand—like shipping, banking, transport, beverages, and fishing—will have an “average year”. So will the metal-element businesses like mining, jewelry, computers, airlines, and automobiles.

Allen said fire-related businesses like entertainment, lighting, and restaurants will have a “competitive outlook” in the year of the Water Dragon.

Allen was one of the speakers during the Views and Prospects 2012 Economic Forum of the Mandaue Chamber of Commerce and Industry and the Cebu Business Club held at the Casino Español.

In her presentation, Allen said that 2012 will be a transformation year in politics and the economy. The last year of the Water Dragon was in 1952. That year, she pointed out, saw the death of King George VI of the United Kingdom, which led to Queen Elizabeth’s transition to power; treaties signed to officially end World War II; the start of the nuclear age with the detonation of the first hydrogen bomb; and a large number of UFO (unidentified flying object) sightings.

While the Water Dragon brings improvement and transformation, Allen also emphasized that based on the Paht Chee Chart for the Year of the Water Dragon, 2012 is “afflicted.”

“The Chinese New Year commences on the worst day of the month, in the worst month of the year,” she said, raising the possibility of violence and natural disasters.

She, however, said that 2012 is also a “double spring” year, which bodes well for those who want to start a business, switch jobs, or get married.

Published in the Sun.Star Cebu newspaper on January 26, 2012.

Coca-Cola expands Cebu plant

2012-01-25T16:49:00.000-08:00

By Katlene O. Cacho

Wednesday, January 25, 2012

COCA-COLA Bottlers Philippines (CCBP) on Monday inaugurated the expansion of its Cebu plant. A company official said the expansion shows the company’s strong commitment in doing business in the country.

Irial Finan, executive vice-president for The Coca-Cola Company and president of the Bottling Investment Group, said the new extension of the Cebu plant is part of the first phase of the company’s $1 billion investment in the Philippines for the next five years.

“This is a symbol of growth in the Philippines and of our business here,” Finan said.

Finan said the company will spread the investment across the country.

CCBP recently completed their newest and most technologically-advanced mega plant in Misamis Oriental. The firm also expanded their Canlubang plant and transformed it into a “Center for Operational Excellence.”

Upgrading systems

The company also expanded its warehouses and upgraded its tracking and logistic systems.

Finan said expansion projects in the Philippines are the company’s first in Asia. He said the company has been operating in the Philippines for for over 100 years and has built a strong relationship with Filipinos.

CCBP is a wholly-owned subsidiary of The Coca-Cola Company based in Atlanta, USA. It operates 23 plants and 47 sales offices across the Philippines, employing over 7,000 employees.

The company expanded in Cebu in 1941. The Cebu plant was the second bottling facility that opened in the country after Manila in 1912. Aside from Cebu, CCBP is also present in other areas in the Visayas like Bacolod, Ilo-ilo, Tagbilaran and Tacloban.

CCBP president and chief executive officer Bill Schultz said the new bottling line added at the Cebu plant is equipped with sophisticated technology that reduces energy consumption and is environment-friendly.

Growing demand

Schultz said they hope that with the new bottling line, the company will increase its production capability to meet the growing demand for their products in the region.

The expansion is also seen to generate employment opportunities in the area. The Cebu plant currently employs 370 associates and 40,000 Cebuano retailers.

Schultz said the company has sustained its market leadership with the growing consumer base in the Philippines.

The Philippine bottling operation is currently among the top ten biggest globally.

When asked about the growing health-conscious market in the country, Schultz said this is also good for them considering that their products also use natural ingredients.

Aside from Coke, the company’s portfolio also includes 14 other “billion-dollar brands” to include beverages, juice and juice drinks, ready-to-drink teas and coffees.

Published in the Sun.Star Cebu newspaper on January 25, 2012.

China’s consumption ratio is no longer falling. Its reserves are no longer rising

2012-01-22T16:45:00.000-08:00

The Economist

January 21, 2012

DATA points sometimes change faster than debating points. It is conventional wisdom that China’s export-led growth squeezes consumers at home and competitors abroad, even as it adds inexorably to the country’s huge foreign-exchange reserves. But figures released this month complicate these arguments.

China still runs a sizeable trade surplus. But its net exports fell in 2011 (in absolute terms) for only the third time since 2000, subtracting 0.5 percentage points from its growth. Thanks to home-grown spending, China’s economy still managed to expand by 9.2% in 2011, remaining surprisingly strong even in the fourth quarter. This growth owed an unusual amount to consumption (both public and private), which contributed over half for the first time since 2001. As a consequence, the share of consumption in China’s GDP edged up in 2011 after falling for ten years in a row.

The mainstay of China’s growth remains investment, on which its economy remains worryingly dependent. Indeed, when China’s critics are not bashing it for overexporting, they bash it for overinvestment in property. Its housing boom is, however, slowing markedly. China this week reported that the price of new homes fell in 52 out of 70 cities across the country in December, compared with the month before. Households are struggling to obtain mortgages; developers are finding it almost impossible to obtain a loan. The drying up of foreign funds is particularly dramatic, points out North Square Blue Oak, a research firm based in London and Beijing. Foreign capital fell by 65% in December, compared with a year earlier.

The flight of foreigners from property partly explains another unusual twist in the China story. Its foreign-exchange reserves fell in the fourth quarter for the first time since the height of the Asian financial crisis in 1998. The drop was small, from $3.2 trillion to $3.18 trillion, but also a little mysterious. China still exports more than it imports, and attracts more foreign direct investment than it undertakes. These two sources of foreign exchange must, then, have been offset by an unidentified drain.

The worry is that China’s capital controls have sprung a leak. “Hot money”, attracted by the country’s growth, may be flowing out as the property market falters. Some even speculate that China’s rich may begin to smuggle their new-found wealth out of the country en masse.

These fears are overblown, for now. Some of the drop probably reflects a change in the value of China’s euro holdings. Some does represent the departure of short-term money, but an ebb and flow of hot money is not unusual. Moreover, some kinds of hot money are more scalding than others, says Stephen Green of Standard Chartered. At one end of the thermometer, an exporter might delay the conversion of his legitimate foreign-exchange earnings. In other, warmer cases, an importer might illegally overstate the size of his purchases, so as to remit more money out of the country. Capitalists eager to take their money out also have other cards to play. Mr Green estimates that last year about $185 billion might have passed from mainland China through the VIP rooms of Macau’s casinos.

Victor Shih of Northwestern University reckons that China’s richest 1% hold $2 trillion-5 trillion in liquid wealth and property. If they were ever to smuggle that money out, the outflow would dent even China’s reserves. That would be a disaster for China’s economic management, putting heavy downward pressure on the yuan. At least China’s critics could no longer trot out another familiar accusation—that it undervalues the exchange rate.

Source: thanks to Tony Padua

Red panties for Year of Wet Dragon?

2012-01-22T16:36:00.000-08:00

SUNDAY, 22 JANUARY 2012 21:14 DENNIS D. ESTOPACE / REPORTEr

RED panties may tide Filipinos over this Year of the Water Dragon. Seriously.

As the economic drag dragged on—World Bank estimates said it would continue to do so for some time yet—Filipinos flocked to shops like Charmee’s to invest in charms and amulets.

“Wala namang mawawala kung gagawin mo,” said a female patron holding a dozen fist-size red lanterns.

She didn’t say, however, if she bought or will buy the red underwear that proprietor Maxima “Maxie” Tiu said is her bestseller.

“Mabagal ang pasok ng pera ngayon but steady,” Tiu, fondly called Mommy Charmee, told the BusinessMirrorthree days before the Chinese Lunar New Year.

SAMUEL LAO BLOGSITE

Megaworld allocates P45B for Bonifacio project

WEDNESDAY, 25 JANUARY 2012 19:14 MIGUEL R. CAMUS / REPORTER

5-year public investment projects to cost government P4.2T

MONDAY, 23 JANUARY 2012 22:15 CAI U. ORDINARIO / REPORTER

BIR firm on REIT law stand

MONDAY, 23 JANUARY 2012 22:20 MIGUEL R. CAMUS / REPORTER

Angara hits BIR move on REIT law

ALI remains ‘optimistic’ for 2012

SUNDAY, 22 JANUARY 2012 18:00 MIGUEL R. CAMUS / REPORTER

CBRE says property glut ‘not likely’ in 2012

Government underspending, exports decline resulted in 3.6 to 4% growth last year: Neda

THURSDAY, 26 JANUARY 2012 19:43 CAI U. ORDINARIO / REPORTER

RLC plans 4 budget hotels in H1

‘PH still has room for growth’

By Katlene O. Cacho

Filinvest assures projects to go on

Tomas confirms run against Rama

American broker works on Cebu realty database

Thursday, January 26, 2012By Mia A. Aznar

Get ready for transformations, feng shui adviser tells forum

Coca-Cola expands Cebu plant

China’s consumption ratio is no longer falling. Its reserves are no longer rising

January 21, 2012

Red panties for Year of Wet Dragon?

Solons want brgy polls postponed

USA's good news: Entirely good for us?

‘Work for success in Dragon Year’

Geomancers, economists take on the year of the dragon

Mayor takes a break, to study BRT system in India with ADB

Peso, dollar deposits up 6.4% to P5.1T

Economist, feng shui expert to talk about 2012 prospects

Exploring untapped markets could lift the BPO industry

CCCI, City government to pursue loop tours plan

Health, wellness sector expects positive 2012

A topnotch choice for both investors and students

Solinea posts record-breaking sales in Cebu

SSS sets new loan amnesty program

Puregold opens 101st store

Cebuano-owned real estate firm unveils new project

Venture capitalists may cushion US bill impact

HSBC sees positive growth prospects in southern PHL

Agriculture and the regional economy

Transport group bares plan to seek injunction in court

OFW remittances up 7.3%: BSP

Montecillo pushes ESL campaign

DOT planning ‘great Cebu sale’

9 eurozone nations downgraded by S&P

World's largest economies

What would eurozone downgrade mean?

Quest: France is embarrassing but Greece is the danger

Disaster at sea: Luxury cruise turns into nightmare

Qatar's challenge: Manage its many riches

7 resolutions for retirees in 2012

RLC Opens New Wing of Robinsons Place Tacloban

Start Up or Settle Down at The Grove

Luxury Living by the Bay: Moldex Realty, Inc.'s 55-storey Grand Riviera Suites - 6th story

The Gardens at Waterwood Park, Landco's Luxury Home Community in Bulacan

Efficient leasing service gives opportunities for One Oasis Ortigas unit owners

South Forbes, Not Just a Name

Flair Towers: Convenience and security defines DMCI Homes project

2 Japanese firms to invest in Phl