Rivalry in Cebu property market heats up

Thursday, 26 July 2012 19:41 Miguel R. Camus / Reporter

THE Gokongwei family’s property arm is turning its attention back to Cebu City, where the clan’s business empire traces its roots, amid tougher competition from rival business families like Henry Sy’s SM Group, which is also aggressively expanding in that city.

Robinsons Land Corp. (RLC) said it started work on Robinsons Galleria Cebu, a seven-story mixed-use building in the North Reclamation area, which it claims is its largest commercial development outside Metro Manila.

Analysts said the move underscores Cebu’s growing importance as a tourism and outsourcing destination—a fact not lost on the country’s top builders seeking to take a bigger slice of the province’s booming growth. 

The island has recently diversified its economy to become a business process outsourcing (BPO) hub “second only to Metro Manila”with tax incentives and advanced telecommunications facilities helping to lure investments, said Claro Cordero Jr., head of research and valuation for Jones Lang LaSalle Leechiu, a property consultancy and brokerage firm.  

“This phenomenon has helped improve the general purchasing power of [Cebu’s ] local economy,” Cordero said in an emailed response on Thursday. “The general outlook is that the O&O [off-shoring and outsourcing ] companies are still likely to operate and expand in Cebu in the medium- to long-term.” 

Robinsons Galleria Cebu will include a 56,000 square meter (sqm) shopping mall, a 153-room gohotel.ph budget hotel, and business process outsourcing offices.  Slated for completion by 2014, it will have a gross floor area (GFA) of 156,000 sqm, but the master plan for the 4.6-hectare lot also includes residential condominiums, RLC president Frederick Go said in the statement.

The new project comes as RLC’s  closest competitors are building even larger shopping facilities. Sy-led SM Prime Holdings Inc. opened last month its second shopping mall in Cebu, called SM City Consolacion, with a GFA of  106,857 sqm. 

In 2014, its opens SM Seaside City Cebu, its biggest shopping center there, with a GFA of 241,600 sqm. SM Prime is also reportedly in talks to acquire a fourth site in Cebu.

Apart from the Sys, Gotianun-led Filinvest Land Inc., which is already developing residential condominiums in Cebu, said it will build a business process outsourcing complex in the reclaimed South Road Properties area.  Ayala Land Inc. also operates a shopping center in Cebu apart from residential projects. 

Cordero said the growing trend of property developers expanding in Cebu is unlikely to see a reversal anytime soon.

“Coming from a low base in terms of high-rise residential projects of highly dense projects, the highly improving purchasing power of the consumers is seen to sustain these developments and saturation of the market is still far from the horizon,” Cordero said. 

The integrated approach of these builders, he said, attracts both end-users and investors, but not without opening up its own set of risks. “This type of demand [buying for investment purposes] is highly-susceptible to market externalities such as the weak global economic recovery,” he said.

Yield of seven-year T-bonds slightly down

Tuesday, 17 July 2012 19:44 VG Cabuag / Reporter

YIELD of the seven-year Treasury bonds slightly went down during Tuesday’s auction as a result of investors’ huge interest to snatch government debt.

The fresh offering seven-year paper fetched a coupon rate of 4.75 percent, or 25 basis points lower than the 5 percent rate when the last time the said paper was auctioned off on April 24.

Tenders reached P20.95 billion, or more than two times oversubscribed compared with the government’s offer of P9 billion. The auction committee made a full award.

Finance Undersecretary Gil Beltran, who chaired the auction, said investors were elated with the string of good news in the economic and fiscal front.

“Our finances are so stable. Our deficit is lower than programmed and the debt ratio is going down. Our economy is going up, while inflation is going down plus we got an upgrade,” Beltran said after the auction.

“Those positive factors contributed to very stable interest rates,” he said.

The awarded rate was also 2.5 basis points lower than the secondary market rate of the same tenor of 4.724 percent.

The government earlier said it posted a budget deficit of P22.78 billion for the first five months of the year, far lower than the P82.7-billion deficit program for the said period.

Meanwhile, the Philippine economy as measured by the gross domestic product (GDP) grew by 6.4 percent in the first quarter of the year while the inflation rate in June eased to 2.8 percent from 2.9 percent in May.

Also, Standard and Poor’s Ratings Agency raised the country’s credit rating early this month to a notch below investment grade.

Beltran, however, said that the underspending problem of the government agencies still persists.

“If you look at the figures, without looking at the targets, it looks fine because your spending is 13 percent increase, that’s a good performance,” he said. “But we’re still below the spending program. I hope we can implement the (infrastructure) projects so we can use the money. The government has so much cash.”

According to the Department of Budget and Management (DBM), the government spent P668.4 billion during January to May, or 13 percent higher than the P591 billion expenditures for the same period last year. The target expenditures for the first half, however, was placed at P885.28 billion.

Refinement redefined at Park Point Cebu

Tuesday, 17 July 2012 19:03 Blake Cassey Blumenthal

LIVE, work and play are Ayala’s main motivations for the new residential building Park Point Cebu. Ayala Land Inc. (Ali), through its signature brand Ayala Land Premier (ALP), will be launching a new tower in the center of the thriving city of Cebu.

Business hubs across the globe will no longer be solidified into one area as Ayala bridges the gap by creating multi-use hubs for working and living combining clusters of leisure and residential developments.

The Cebu Park District will mirror that of Bonifacio High Street as well as Makati as Cebu grows into an industrial and much sought-after living destination. “Five to ten years ago, high end property developers like Ayala thought that Cebu wasn’t ready. (Today,) Cebu has changed dramatically to an economic and prosperous district that is now ready to carry the brand that Ayala offers,” said Jose Juan Jugo, head of Ayala Land Premier. “We needed to catch up with Cebu because she was running to fast,” he added.

Ali and Cebu Holdings Inc. (CHI) continue to have a major redevelopment project that involves the twinning of its existing business squares—Cebu I.T. Park and Cebu Business Park. Through this, they hope to solidify the character of the city as a burgeoning global hub for business, pleasure, leisure and living.

Ali and CHI will be investing a total of P12.5 billion in the development of Cebu Park District which includes the revitalization of Cebu Park District’s overall master plan. Cebu Park District will create a destination that allows urbanites to enjoy a space that flourishes and espouses both convince and recreation. As well as the comfort of knowing all of your wants and desires are an elevator ride away.

“We want the residences to have access to the supermarkets at the mall and be able to take the elevator when they please (in order) to pick up olive oil to finish cooking. We want to give them accessibility and luxury,” said Jugo.

“This distinctive lifestyle destination is regionally recognized for housing different premier shopping and dining options to serve the gustatory desires of both locals and tourists. Given its function, it basically completes and balances the urban experience in Cebu’s urban hub,” shared Antonino Aquino, president of Ayala Land and chairman of Cebu Holdings, Inc. “However, the expansion that involves investment share of Ayala Land Premier, will broaden the basic intent of its master plan.”

The 38-storey residential tower is the first of its kind in ALP’s residential portfolio in the region. ALP will be introducing a new living concept that will mark the beginning of sophisticatedly modern and integrated living within the premier shopping, dining and entertainment destination itself. Ali through ALP expands its footprint in the Cebu region broadening the spectrum of Cebu Park District which will be at the center of the thriving city complex.

“Given its location, future residents will experience sophistication and convenience at the same time, as Park Point Residences will offer private access to the soon-to-rise destinations in Ayala Center Cebu. While the idea of living a sophisticated lifestyle is not new to Cebuanos, the newest residential development will further the experience through replicating globally designed lifestyles In major cities worldwide, as Park Point Residences will be set right at the heart of an exciting urban enclave,” shared Jugo.

Each unit will be furnished to offer soothing and refreshing spaces above the din of bustling metropolis. With a total of 255, which consist of one- to three-bedroom units the iconic residential tower will offer a vast view of Cebu’s vibrant cityscape which is at the center of everything.

“Most of the thriving cities across the globe demonstrate of envision offering a lifestyle that is defined by expediency and refinement, coupled with options that allow urbanites to breathe and relax despite the fast-paced setting. That is basically what the expansion of Ayala Center Cebu and the rise of Park Point Residences will replicate in the coming years—a pensively master-planned urban center and residential enclave that will reinforce the innate sophistication and urban convenience of Cebu,” Jugo intimated. And for more inquiry contact +63917.3236123.

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In Photo: Architect ’s perspective of Park Point Residences. (Ayala Land Inc.)

Grand Towers offers the best living space for families

Tuesday, 17 July 2012 19:05

HIGH-RISE development has evolved from being an immediate solution to counter city traffic and the hassles that go with it, to a viable option for a sustainable family home in the city and a prime investment.  At the forefront of this evolution is Moldex Realty Inc.

Since its launch, The Grand Towers Manila easily became one of Manila’s more recognizable skyline staples. This highly coveted residence has been home to many young professionals, entrepreneurs, students and families.

Strategically located along Pablo Ocampo Sr. Street (formerly Vito Cruz), The Grand Towers’ close proximity to educational, commercial, retail, cultural, recreational and dining establishments has strengthened its stance as the premier hub of modern living where there are no gaps between where you live, work and play.

Condo living has now become the most popular and convenient housing option, notably for families.  “It has now become a regular phenomenon coupled with a lot of wonderful benefits—practicality, luxury, satisfaction, convenience.  For a dwelling place, it’s complete. Condo living is not only a matter of personal choice, it should be perceived as a lifetime achievement and reward for success,” stated Thelda Cayetano, VP for vertical sales of Moldex Realty Marketing Inc., the marketing arm of Moldex Realty Inc.

With its two-bedroom units now ready for occupancy, The Grand Towers’ doors are ready to welcome you to experience the wonderful view of the city. Cayetano cites, “It is spacious, has high ceilings and well-crafted layouts to enable the unit owner to put in some smart configuration of his own design to transform it into a more luxurious living space.”

“Your loved ones will experience the fruit of your accomplishment,” according to Cayetano.  “With the two-bedroom units now move-in ready, residents are assured of a living space that is not cramped. Most real-estate developers have learned to profit with smaller spaces. Condominiums these days have gotten smaller and smaller—not with The Grand Towers Manila.” 

Moldex Realty Inc. understands the need for solace after a hard day’s work, and at the same time, avenues where families can bond and spend quality time with each other.  Not only is The Grand Towers Manila a viable home in the city but an excellent choice for the whole family.

Owning a two-bedroom unit at The Grand Towers comes with its perks.  This building is designed with a modern lifestyle in mind with the benefits of community living as evident in its wide array of amenities conveniently laid out in a 3,000-sq-m grand podium deck.  What sets it apart from the multitude of city-based condominiums is its family-friendly appeal.  Only at The Grand Towers can families get to enjoy the lap and kiddie pools, outdoor shower areas, kid’s outdoor play area and sandbox, gazebo, and a Wi-Fi-enabled study area, tangible proofs that city living need not limit a kid’s childhood.

For the more active residents, there is also a well-equipped gym and fitness center, a jogging path, an outdoor swimming pool, and a jacuzzi. Function rooms and a social hall are also available for events.

“The Grand Towers is definitely a good find. It is an excellent investment,” said Cayetano.  “When you purchase a condominium unit at The Grand Towers, there’s a guarantee of quality and you know that you will enjoy living here.  Factors that buyers must consider when purchasing a condominium unit, such as convenience, security and comfort—they’re all here.”

Likewise, she says that condominiums nowadays have become a niche business opportunity for people to invest, and while The Grand Towers offers ultimate living and pleasure, it has also started to serve as a source of lucrative income.  Since its launch, The Grand Towers’ unit owners were given profit opportunities to tap the rental market in the university area.  With its two-bedroom units now available and ready for occupancy, prospective owners can earn more. “Reselling and rental opportunities are giving our unit owners the chance to generate cash flow to pay their amortization. This is just a manifestation of its investment potential,” noted Cayetano.

Being one of the leading Real Estate Developers in the country, as manifested in its portfolio of over 30 strategically located and quality projects from Heritage Residences to Metrogate Communities to Golden Empire Tower, The Grand Towers Manila serves as a testament to Moldex Realty Inc.’s vision to meet and exceed the customer’s expectation, and its commitment to continuous excellence through first-rate property management and service.

www.moldex.com.ph/realty

Phl targets $8 billion for geothermal projects

By Neil Jerome C. Morales (The Philippine Star) Updated July 19, 2012 12:00 AM Comments (0)

MANILA, Philippines - The Philippines targets an additional 1,500-2,000 megawatts (MW) of generation capacity from geothermal projects worth as much as $8 billion, making the country the top geothermal producer in the world in two decades.
New Zealand geothermal industry leaders, in a forum yesterday, said they are ready to share their technologies and expertise to local firms.
“Certainly our target is to be the number one producer. With that additional capacity we are looking at, we hope we can surpass the US in terms of geothermal production,” said Energy Undersecretary Jose Layug Jr.
Energy Secretary Jose Rene Almendras and Layug said the Philippines aims to increase its geothermal capacity by 1,500-2,000 MW in 2020-2030.
To date, installed geothermal production capacity in the country is 1,972 MW, the second highest in the world next to the US.
“In terms of potential, there is still that additional capacity that we can tap into,” Layug said.
“It is a matter of making sure that these projects will be developed more cost efficiently because they are smaller in scale and therefore we anticipate the higher cost,” Layug said.
Benchmark investment for geothermal projects is $2 million to $4 million for every MW, said Mike Allen, steering committee chair of industry group Geothermal New Zealand. Hence, an additional 1,500-2,000 MW capacity will require $3-8 billion.
The Philippine government wants to work with New Zealand, which is an expert in geothermal energy.
“We will work with them for the resource assessment with existing geothermal resources,” Layug said.
“New Zealand [firms] have expressed interest in the Philippines. We have come into agreements on how we will encourage private sectors from both sides to come and do this together,” Almendras said.
Almendras added that New Zealand-based companies can apply for a service contract while technology suppliers and experts can work with local firms.
Specifically, firms from New Zealand can assist in training and retrofitting existing geothermal power plants.
Allen said firms in New Zealand can also bring to the Philippines technologies for small scale geothermal power production like 10-15 MW.
The companies can also help in locating and assessing resources, hence decreasing project risks, Allen said.
To date, New Zealand has an installed generation capacity of 750 MW from geothermal projects, which is expected to rise to 1,000 MW next year. It has a long-term geothermal potential os 3,000-4,000 MW, Allen said.