Waterfront seeks P2 billion for loan restructuring

By Zinnia B. Dela Peña (The Philippine Star) Updated November 25, 2009 12:00 AM

MANILA, Philippines - Gatchalian-led hotel operator Waterfront Philippines Inc. plans to borrow up to P2 billion for the restructuring of its loan with the Philippine National Bank and the renovation of its hotels.

In a disclosure to the Philippine Stock Exchange, Waterfront said its shareholders approved a board resolution authorizing the company to apply for loans of up to P2 billion.

Waterfront earlier remitted P826 million to the Philippine National Bank as complete payment of its outstanding obligation provided under their court-supervised compromise agreement. This brought the total amount paid by Waterfront to PNB to approximately P2.9 billion over the last eight years from the original loan amount of P780 million in 1997.

The original loan doubled its peso amount upon conversion as a result of the devaluation of the peso

The compromise deal forged in Nov. 21 prevented the foreclosure of the 562-room Waterfront Cebu City Hotel & Casino, the biggest in Cebu City and Waterfront’s flagship property, and the 167-room Waterfront Airport Hotel & Casino Mactan.

Part of the loan will be used to upgrade the company’s hotels in Cebu City, Mactan City, Davao City and Manila.

Shareholders also approved a plan authorizing Waterfront to convert up to P600 million of its advances to Waterfront Cebu City Casino Hotel Inc. into common shares of Waterfront Cebu City Casino Hotel Inc. at par value.

The settlement of the outstanding loan will allow Waterfront to focus on improving its hotel facilities and building inroads into new and emerging tourist markets.

Hong Kong Adopts Guidelines on Property Marketing

By JONATHAN CHENG

HONG KONG – Notoriously aggressive marketing tactics for Hong Kong residential property that helped turn the 46th floor of a landmark development into the 88th floor will soon be toned down.

Under new government guidelines, real-estate developers here will have to clearly state the floor number and square footage of condominium units in their sales materials.

"The government is deeply concerned about some recent sales tactics in the first-hand uncompleted residential property market and confusing market information," a government spokesman said Friday. "The new measures will further enhance the transparency of transactions ... and the clarity of property information."

Associated Press

New guidelines in Hong Kong require developers to clearly state the floor number and square footage of condominium units, after one builder represented the 46th floor of a landmark development, shown above, as the 88th floor.

Last month, blue-chip developer Henderson Land Development Co. said it sold a unit in its luxury condominium, 39 Conduit Road, for about US$56.6 million. The unit, which was marketed as sitting on the 68th floor of the building, was actually on the 44th floor.

The building's floor numbering plan skipped scores of numbers deemed to be inauspicious (those containing the number four, for example, which sounds like a Chinese word for death) and highlighted the ones considered lucky (such as ones containing eight, which sounds like a word for prosperity). The top floor of the 46-story building is called the 88th floor.

Now, the government says developers will have to "set out the floor numbering information clearly" in the front of their sales brochure.

The government also focused on how big developers say an apartment is. Typically, Hong Kong's developers include each unit's share of the public hallways, air conditioning units and the gym and spa in quoting its gross floor area to homebuyers. Developers don't always report the so-called "saleable," or usable, square footage of the apartment -- which includes only the unit itself, plus any extra balcony or utility areas.

Under the government's new measures, which it announced Friday in conjunction with the Real Estate Developers Association of Hong Kong, developers will have to show the per-square-foot price of individual flats, using saleable area.

At 6,158 square feet, the apartment at 39 Conduit Road sold for US$9,200 per square foot. After stripping out the extras, the condo is only 4,671 square feet, which works out to over US$12,000 per square foot.

A Henderson spokeswoman said that the developer would comply with any guidelines issued by the Real Estate Developers Association. Previously, Henderson Chairman Lee Shau Kee said the numbering of 39 Conduit Road was a response to market demand.

Under the government's new arrangements, developers will also have to disclose information about primary market transactions more quickly, within five days instead of the current period of one month.

CIPC: SRP management body underway

By Ehda M. Dagooc (The Freeman) Updated November 13, 2009 12:00 AM

CEBU, Philippines - South Road Properties (SRP) will soon install a Project Management Authority, and this idea is not new, as stressed by the Cebu Investments and Promotions Center (CIPC).

CIPC managing director Joel Mari S. Yu made this pronouncement following the statement made by opposition leaders Jonathan Guardo and Mary Ann de los Santos that SRP should be managed by an overseeing body like a management authority in order to have transparency in any transaction.

Yu said that the Mayor has already understood that the City-owned zone should have a project management agency, “We know that already, but it’s only a matter of time when the project management authority will be installed.”

CIPC is commissioned by the Cebu City government to promote the 300-hectare SRP, which is considered as the largest revenue generator of the City in the next few years, making Cebu City as the wealthiest LGU in the Philippines.

“It will come,” Yu said referring to the installment of a project management authority.

According to Guardo and de los Santos, a professional project management Authority should be installed in order for SRP to take off, and pursue transparent negotiations with investors, thereby contributing actual revenue to the City.

They said that because of the existing conflicts of the current Cebu City government with other Local Government Units (LGUs), the City has lost significant revenue generation.

SRP could have generated actual revenue for the City, if not of the current political conflict with other local government units (LGUs).

On the other hand, despite the unending controversies attacking the Cebu City developed South Road Properties (SRP), real estate giant Filinvest Land Inc. (FLI) has vowed to pursue with its P25 billion project at the area.

FLI vice president for the Visayas and Mindanao Tristan Las Marias earlier said that the company intends to break grounds at the SRP project early next year.

By year-end, FLI targets to finish the master-plan for the entire 40-hectare lot that is covered by its joint venture with the Cebu City government.

The multi-residential development, he said will give Cebu City another landmark that will have an international flavor, as well as attract the local investors.

Under the contract of the FLI-Cebu City joint venture, the development master plan for the property is to be approved by the City Council within 10 to 12 months after the contract signing last February.

He said Filinvest has commissioned the services of foreign consultants and international master planners for the development design.

“We want the development to have an international flavor to sell it not just locally but also internationally,” said Las Marias.

As of this point, FLI has not committed a name for the project yet, he said adding that as per the company’s commitment to the City Council, the development will be mainly multi-residential type with medium rise buildings, condominium units.

BPO sector keenly awaits Cebu's MBA hub outlook

By Ehda M. Dagooc (The Freeman) Updated November 16, 2009 12:00 AM

CEBU, Philippines - Business Process Outsourcing (BPO) industry players hope that Cebu will fast track its plan in positioning itself as MBA (Masters in Business Administration) hub in Southern Philippines, in order to attract higher level outsourcing investments.

Business Process Association of the Philippines (BPAP) former chairman, and chief executive officer (CEO) of Aegis PeopleSupport, applauded Cebu City Mayor Tomas Osmeña’s vision to make Cebu as “MBA Hub.”

According to Borja, the Mayor’s plan is seen to suit well the City’s bid to attract the new wave of outsourcing investments, which is the Knowledge Process Outsourcing (KPO), of which salary standard are much higher than the voice-outsourcing service like the call center.

Currently, investment banks in the US, and analysis jobs requirement in the Wall Street are being outsourced, and the Philippines has the capacity to capture this multi-million-dollar industry, as long as it has enough manpower pool.

Positioning Cebu as an MBA Hub, would well serve the City or the province’s bid in becoming the number one emerged outsourcing destination in the world, he said.

Earlier, Osmeña announced to BPO players here his plan to establish the first

University of the Philippines-MBA school designed solely for the call center agents or BPO workers, wherein schedule of classes will be adjusted depends on the convenience of the students.

“We will create brain-drain to the SRP,” Osmena said explaining that with the establishment of first UP-MBA school SRP will create a community of “bright” manpower pool to the SRP that will draw BPO investments to the area.

The Cebu City government will officially turnover a five-hectare property within SRP to the University of the Philippines-Cebu to establish the MBA school in the area. UP, on the other hand, is allowed to get industry partners to invest for the facility in the next three years.

The Mayor said that Cebu has recognized its weakness in providing good manpower supply to BPO investors, this is in the lack of middle-management or supervisory and managerial pool. Thus, the creation of the MBA school at SRP.

With this, Osmena said professionals will no longer consider call center agents as “dead-end” jobs, as it now provides after-work school “offering them a future”.

Meanwhile, an Australian investor expressed interest to partner with local institution to put an international MBA school in Cebu, to help arrest the problem of mid-management manpower pool that concerns Business Process Outsourcing (BPO) industry here.

Michael Burdette, chairman and director-finance for Tech Growth Solutions Cebu Inc., said that he currently on talks with local businessmen to venture an International MBA school here, so that Cebu will be able supply the much needed managers and supervisors for the BPO sector.

Burdette said he is willing to invest in a school facility that will also tap international MBA instructors in partnership with existing universities or colleges here.

“Cebu has huge potential for BPO investments, compared to other places in the Philippines, like Manila. Cebuanos are intelligent, hardworking, your tech sector is good,” he said stressing that establishment an immediate establishment of an international MBA school may further push up Cebu’s position as BPO investment magnet.

He said his investment here in Cebu, which provides backroom services for clients all over the world, is meant for long term, the reason why he is serious in working with local traders to fund or put up world-class MBA school here.

BPO sector keenly awaits Cebu's MBA hub outlook

By Ehda M. Dagooc (The Freeman) Updated November 16, 2009 12:00 AM

CEBU, Philippines - Business Process Outsourcing (BPO) industry players hope that Cebu will fast track its plan in positioning itself as MBA (Masters in Business Administration) hub in Southern Philippines, in order to attract higher level outsourcing investments.

Business Process Association of the Philippines (BPAP) former chairman, and chief executive officer (CEO) of Aegis PeopleSupport, applauded Cebu City Mayor Tomas Osmeña’s vision to make Cebu as “MBA Hub.”

According to Borja, the Mayor’s plan is seen to suit well the City’s bid to attract the new wave of outsourcing investments, which is the Knowledge Process Outsourcing (KPO), of which salary standard are much higher than the voice-outsourcing service like the call center.

Currently, investment banks in the US, and analysis jobs requirement in the Wall Street are being outsourced, and the Philippines has the capacity to capture this multi-million-dollar industry, as long as it has enough manpower pool.

Positioning Cebu as an MBA Hub, would well serve the City or the province’s bid in becoming the number one emerged outsourcing destination in the world, he said.

Earlier, Osmeña announced to BPO players here his plan to establish the first

University of the Philippines-MBA school designed solely for the call center agents or BPO workers, wherein schedule of classes will be adjusted depends on the convenience of the students.

“We will create brain-drain to the SRP,” Osmena said explaining that with the establishment of first UP-MBA school SRP will create a community of “bright” manpower pool to the SRP that will draw BPO investments to the area.

The Cebu City government will officially turnover a five-hectare property within SRP to the University of the Philippines-Cebu to establish the MBA school in the area. UP, on the other hand, is allowed to get industry partners to invest for the facility in the next three years.

The Mayor said that Cebu has recognized its weakness in providing good manpower supply to BPO investors, this is in the lack of middle-management or supervisory and managerial pool. Thus, the creation of the MBA school at SRP.

With this, Osmena said professionals will no longer consider call center agents as “dead-end” jobs, as it now provides after-work school “offering them a future”.

Meanwhile, an Australian investor expressed interest to partner with local institution to put an international MBA school in Cebu, to help arrest the problem of mid-management manpower pool that concerns Business Process Outsourcing (BPO) industry here.

Michael Burdette, chairman and director-finance for Tech Growth Solutions Cebu Inc., said that he currently on talks with local businessmen to venture an International MBA school here, so that Cebu will be able supply the much needed managers and supervisors for the BPO sector.

Burdette said he is willing to invest in a school facility that will also tap international MBA instructors in partnership with existing universities or colleges here.

“Cebu has huge potential for BPO investments, compared to other places in the Philippines, like Manila. Cebuanos are intelligent, hardworking, your tech sector is good,” he said stressing that establishment an immediate establishment of an international MBA school may further push up Cebu’s position as BPO investment magnet.

He said his investment here in Cebu, which provides backroom services for clients all over the world, is meant for long term, the reason why he is serious in working with local traders to fund or put up world-class MBA school here.