Villalons to take full control of Monterrazas development

By Ehda M. Dagooc (The Freeman) Updated March 12, 2010 12:00 AM

CEBU, Philippines - Landco Pacific Corporation and Genvi Development Corporation officially ended their agreement to jointly develop the 210-hectare high-end hillside residential resort called Monterrazas de Cebu.

Genvi Development Corporation, owned by the prominent Villalon family in Cebu who is also the landowner, is now taking full control of the development, after the two companies terminated their joint venture agreement recently.

In a press conference, Genvi Development Corporation president and general manager Augusto Villalon said that the company is committed to stick with the original plan to develop the entire 210-hectare property with a capital expenditure of P5 billion in the next 10 to 15 years.

Despite the termination of Genvi’s partnership with Landco, Villalon assured property owners, and prospective buyers of Monterrazas de Cebu to fast track the project. The targeted completion of the phase one of the project was delayed due to drainage and environmental problems, among others.

Villalon said Monterrazas de Cebu will now become Genvi’s biggest real estate project, as the company had only been developing small low-cost housing projects in Cebu.

Although the company has not been known as developer of big residential and high-end projects, the Villalon family committed to continue the original masterplan. In fact, it has readied a P300 million budget to move the development faster in the next 30 months.

“We are laying our company on the line here. We have to fulfill what is expected from us,” said Marga Villalon, Genvi’s vice president and treasurer.

In an official joint statement, Villalon and Landco Pacific Corporation president and chief executive officer (CEO) Alfred Xerez-Burgos III said they have agreed for Genvi to take over as developer and landowner of Monterrazas de Cebu.

Villalon reiterated the Genvi’s commitment to pursue Landco’s original vision for the project, while Landco agreed to be a consultant in the next several years to ensure smooth transition.

Early last year, the Metro Pacific Investment Corporation (MPIC) trimmed down its stake of Landco from a majority 51 percent to 30 percent, after agreeing to sell part of its shareholdings to AB Holdings for P220 million.

AB Holdings acquired P500-million loan to MPIC, an earlier report said that AB Holdings used Landco’s shares in three mall corporations to pay up the loan exposure.

Landco is one of the country’s biggest real estate developers. The Monterrazas de Cebu could have been the company’s flagship showcase in its first entry in the Visayas.

Villalon, who is a well-known architect in the country, assured that the phase I of the project, which is composed of two cluster lots, is scheduled to complete in the next three years, and land owners can already build their houses by the end of this year.

Upholding their good name as Cebuanos, the Villalon family erased impressions on the project’s uncertainty, instead vowed a much faster completion of the development.

“We know there will be market apprehensions, it is expected. But the proof is our delivery. We have a fantastic team that is very experienced in this kind of development,” Marga Villalon said.

Landco and Genvi inked the joint venture agreement in December of 2006, to start the Monterrazas de Cebu project, which is one of the largest integrated residential development projects, being built in Cebu in the last few years. It is located in the huge 220-hectare prime hillside estates which covers several barangays in Cebu City Labangon, Sapang Daku, Guadalupe and Buhisan.

The development, which will build complete line of real estate products, such as chic home address, townhouses, condominiums, commercial/lifestyle facility is targeted to complete in the next 10 to 15 years. (BANATNEWS)

In Cebu this 2010 Innoland to invest in big projects

By Ehda M. Dagooc (The Freeman) Updated February 08, 2010 12:00 AM

CEBU, Philippines - The promising outlook for real estate sector in Cebu has prompted a Cebuano capitalist group to put its focus on the industry and readies to invest at least close to a billion pesos this year.

The company that developed three buildings, two of which are BPO buildings, the Sykes building and TG Universal (TGU) Building at the Asiatown IT Park, has created Innoland Development Corporation to pursue its active real estate developments for Cebu in the next few years.

At least three more big projects will be introduced by the new company within this year, one of which will be started before the May elections, said Innoland chief operating officer (COO) Charles Ong.

“These will be high-breed projects, something different for Cebu,” said Ong during the formal opening of the 16-story TGU Building at the Asiatown IT Park.

According to Ong, the company has positive outlook for Cebu’s real estate sector, “there’s a room for growth in the long term. Besides, we feel the passion to contribute to Cebu’s economy.”

The group, which is led by its chief executive officer (CEO) Joy Anthony Ong, expressed its seriousness in venturing into the real estate development for Cebu, and ultimately ventures projects in other regions, after building its name here.

In fact, Innoland consultant Tetta Ba-ad said the company is planning to enter into IPO (Initial Public Offering) for a long-term plan.

This new real estate development brand, although has not divulge the kind of projects it is going to venture into in the next couple of months, Ong only said that one of the projects will be the creation of a full-“green building” that will get and international accreditation for environment friendly building.

The first project that will be started by the company in the next couple of months will be located in a 3,000 square-meter lot at the Asiatown IT Park. However, the group has not divulged the full description of the kind of project.

Innoland has done extensive research and feasibility study for Cebu real estate sector. “The market is different now—sophisticated, tech-savvy, well informed, and conscious of the environment,” Ong said.

Thus, the company’s line of projects will incorporate the different need for today’s market.

According to Ba-ad, Innoland will not only concentrate in building projects contained in the urban areas in Cebu, but eventually it will also look at possibilities of developing other projects, such as resorts, residential, among others.

The company, is constantly on the look out for more opportunities to develop more real estate projects in Cebu, aside from the identified three projects that will be introduced under the Innoland brand in the next few months.

The group behind the InnoLand, is the same group that developed the Sykes Building in Mabolo, TGU Building. This time, the group has decided to put their future developments into one brand, indicating its seriousness in entering in full-time into the real estate business.

Innoland strives not only to create living and working spaces, but projects that are tempered buy respect for nature and environment. “Sustainability will be an important consideration in the design and implementation of our projects,” Ong concluded.

French oil giant to invest P400 million for Cebu stations

By Ehda M. Dagooc (The Freeman) Updated March 13, 2010 12:00 AM

CEBU, Philippines - French oil giant, Total (Philippines) Corporation (TPC) announced its P400 million investment plan for Cebu in the next three years.

This plan includes the installation of five more stations in Metro Cebu this year, which will incur an investment of P120 million.

In an interview with TPC president and managing director Ernst Wanten, he said that Cebu’s vibrant economy presents a growth opportunity for TPC.

Since its entry to the Philippines in 1998, Total has already installed 133 stations mostly in Luzon. This year, the company has decided to explore the Southern Philippine market, through a stronger presence in Cebu.

As part of its expansion program, the company opened a fuel depot in the province, which has a capacity of two million liters. It also currently upgraded its waterborne fleet with the acquisition of MT Camille, a 3,651 deadweight ton double-hulled vessel classified by the Korean Register Shipping as accredited by the International Association of Classification Societies (IACS). The depot will serve both retail and wholesale consumers.

Total’s strong entry in Cebu will not only provide wider options for consumers to get their fuel requirements, but it also offers business opportunity for entrepreneurs who may want to partner with the Total.

The company offers two packages for entrepreneurs for partnership these are via Company-Owned-Dealer-Operation (CODO) and Dealer-Owned-Dealer-Operated (DODO) options.

Of the total 133 gasoline stations installed by Total in the Philippines, 97 of which are DODO, and 36 are CODO.

In Cebu, Wanten said the company will build the infrastructure, which means the physical gasoline stations, and partnership will depend on the negotiations of interested entrepreneurs.

The first Total station in Cebu is located along Plaridel Street in Mandaue City. It has four pump islands and also has a Bonjour convenience store and Café that offer a wide selection of quality snacks and sundries. It is run by a staff of a 25 personnel.

“Our forefront service crew and Bonjour staff have been trained on the Total brand of customer service, which is what differentiates us from our competitors,” he said.

The Total big boss was here in Cebu to attend the Petro/World Forum held last March 9 to 12 at the Shangri-La Mactan Resort and Spa in Mactan Island.

In the next three years, the company plans to build at least 20 Total gasoline stations around the Cebu Metropolis.

“Cebuanos are different clientele. They are interesting,” Wanten said describing Cebuano customers as more demanding and critical. He said this is what makes it challenging for Total to establish its brand here.

With the quality and competitive products and prices offered by the company, Wanten is confident that Total will be able to hit the taste of the “Cebuano market”.

Total is the fifth largest publicly-traded integrated oil and gas company in the world. It reported sales of 179,976 billion Euro in 2008.

Net hot money inflow hits $308.7 million in January-February

By Lawrence Agcaoili (The Philippine Star) Updated March 14, 2010 12:00 AM

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) reported a net portfolio investment inflow of $308.7 million in the first two months of the year or almost 14 times the inflow of $22.6 million registered in the same period last year due to higher export earnings and additional government borrowings.

Data released by the central bank showed that BSP-registered foreign portfolio investments increased $286 million from January to February this year after the country’s merchandise exports jumped 42.5 percent in January.

“Net inflows were sustained due to news on higher export earnings, inspite of jitters about the coming elections and recent sovereign debt concerns in some European countries,” the BSP stressed.

Inflows surged 53.9 percent to $1.076 billion in the first two months of the year from $698.92 million in the same period last year. Major sources that accounted for about 83 percent of the total portfolio investments in January and February included the United Kingdom, the US, Malaysia, Luxembourg and Singapore.

On the other hand, gross foreign portfolio investment outflows climbed 13.5 percent to $767.73 million in the first two months of the year from $676.3 million in the same period last year due to withdrawals from interim peso deposits.

For the month of February alone, foreign portfolio investments posted a net inflow of $139 million, a complete reversal of the $198.73 million net outflow registered in the same month last year.

Portfolio investment inflows surged 154.2 percent to $500.39 million in February from $196.85 million in the same period last year.

Investments in shares being traded at the Philippine Stock Exchange (PSE) accounted for about 74 percent of the total inflows, followed by government securities with 18 percent, and peso bank deposits with minimum maturity of 90 days with eight percent.

On the other hand, outflows retreated 8.5 percent to $361.81 million in February from $395.58 million in the same month last year.

Registration of inward foreign investments with the BSP is voluntary. It entitles the investor or his representative to buy foreign exchange from authorized agent banks or their subsidiary/affiliate foreign exchange corporations for repatriation of capital and remittance of dividends/profits/earnings that accrue on the registered investment.

The Philippines shrugged off the global recession and posted a portfolio investments net inflow of $388.02 million in 2009, a complete reversal of the $1.784 billion outflow posted in 2008.

Inflows, the BSP data showed, amounted to $6.335 billion last year or 23.8 percent lower than the $8.321 billion inflows registered in 2008 while outflows fell 41 percent to $5.947 billion from $10.105 billion.

BSP sees OFW remittance growth of 6% in January

By Lawrence Agcaoili (The Philippine Star) Updated March 14, 2010 12:00 AM

Tetangco

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) believes that the amount of money sent home by Filipinos from abroad in January grew by more than the full year growth target of six percent due to high demand for skilled Filipino workers abroad.

BSP Governor Amando M. Tetangco Jr. told reporters Friday that overseas Filipino workers’ remittances likely grew faster in January than the full-year growth of six percent based on preliminary data.

“This year we are projecting six percent for the whole year, but for the initial data I have seen, it looks like the figure for January could be in excess of the projection for the year,” Tetangco stressed.

The BSP sees OFW remittances growing by six percent to a new record level of about $18.1 billion this year.

Last year, remittances went up by 5.4 percent to a new record level of $17.348 billion last year from $16.426 billion and exceeded the revised four percent growth forecast set by the central bank due to the sustained demand for skilled Filipino workers overseas particularly engineers, medical practitioners, and teachers.

This, after the money sent home by overseas Filipinos surged by 11.4 percent to hit a new monthly record high of $1.567 billion in December 2009 from $1.407 billion in December 2008.

The amount eclipsed the previous monthly record high of $1.531 billion registered last October.

Major sources of remittances last year included the US, Canada, Saudi Arabia, United Kingdom, Japan, Singapore, United Arab Emirates, Italy, and Germany.

The remittance level accounted for about 10.8 percent of the country’s gross domestic product (GDP) that expanded by 0.9 percent last year from 3.8 percent in 2008.

The stronger-than-expected growth could also be traced to the decision of the government to conduct bilateral talks with host countries that continue to open up new employment opportunities abroad for Filipinos and to facilitate the hiring of displaced workers who were affected by the global economic difficulties.

Authorities also cited the continued expansion of remittance transfer facilities that has helped capture a large share of the global remittance market.

Commercial banks’ established tie-ups, remittance centers, correspondent banks, and branches or representative offices abroad increased to 4,192 as of 2009 from 3,015 as of 2008.

Data from the Philippine Overseas Employment Administration (POEA) showed that the government processed about 41.6 percent or 221,548 of the total job orders that reached 532,214 last year. These jobs comprised mainly of service, production as well as professional, technical, and related job categories in Saudi Arabia, Qatar, UAE, Kuwait, and Hong Kong.

The POEA reported that Middle East countries particularly Saudi Arabia continue to absorb a significant number of deployed OFWs including those that have been displaced elsewhere.

The BSP was originally looking at a zero growth last year but later revised the outlook to a growth of four percent due to the steady deployment of Filipino workers abroad and the increase access to formal remittance channels.

OFW remittances are expected to grow faster at six percent next year especially with the signing of a memorandum of agreement between the BSP and member banks of the Association of Bank Remittance Officers Inc. (ABROI).

The agreement calls for the use of the central bank’s Philippine Payments and Settlements Systems (PhilPaSS) to send the remitted money to the beneficiaries’ accounts in other banks.

OFW families are expected to save at least P92 million to as high as P922 million due to the faster and cheaper delivery of remittances to the beneficiaries at a lower rate of P50 per transaction instead of the current range of between P100 and P550 per transaction.