Former DJ comes home, segues into real estate development

By Rinnah B. Flores

AFTER years abroad, Arniel Armamento returned to his native Cebu to put up his own company. His first project? A “dream community” in his own municipality, Sogod.

“Where life is so good in Sogod,” quipped Kevin Cormack, a corporate consultant of the JC Armamento Development (JCAD) Inc., during its groundbreaking ceremony last May 2.

Sicily, the first subdivision development in the northern Cebu town, is a mixture of three communities in one address. The P400-million project will be the flagship of JCAD, which officially opened last November 2009.

With its three phases—the Sogod Bay Residences, Sogod Campo Grande and Teachers’ Village—Sicily hopes to attract foreigners, overseas Filipino workers (OFWs) and local workers.

Sogod Bay Residences will consist of 15 high-end houses for affluent foreigners married to Filipinos who want to make the Philippines their second home. It is located at the beachfront.

Sogod Campo Grande, with 121 residential units, will be marketed to OFWs, while the Teachers’ Village will provide 184 affordable homes for local workers.
The subdivision draws its name from the observation that its beachfront and greenery appear similar to Italy’s Sicilain coast.

The project will start pre-selling after three to six months, Armamento said.

Before working in Dubai, Armamento was a disc jockey in Cebu, known as DJ Josh, eight years ago. When he went to Dubai, he managed to save capital, and now owns different businesses there, including The Filipino Expats Magazine.

He was on a career high when the economic downturn hit hard.

Armamento, however, said he observed during trips to Thailand, Hong Kong and other destinations that, in contrast, Filipinos continued to go to malls and restaurants, and the housing sector continued its steady gains.

“When the First World market slowed down, we looked for new emerging markets. The Southeast Asia became an enticing market and, for sure, the Philippines is in an upward trend,” said Armamento.

After convincing his business partners there’s always a good opportunity lurking around the corner, he was able to start JCAD.

Located in Labogon, Mandaue City, JCAD is in partnership with Majestic LLC Group of Dubai, which is in the hospitality and finance business and headed by its managing partner, Omar Al Mazrooqi.

JCAD’s future projects include Easterville Subdivision in Lapu-lapu City, a seaside community in Cordova and another one in Talisay.

“I represent the other OFWs who work hard abroad and come back to help their community through the skills they gained outside,” said Armamento. “My vision is for OFWs to come home and help their country through their talents. For sure, the Philippines will become better.”

Published in the Sun.Star Cebu newspaper on May 5, 2010.

Ayala to pour in P2B in Cebu

By Katlene O. Cacho

THE Ayala Group of Companies is allocating P2 billion for capital expenditures (capex) for Cebu starting this year.

The capex is meant to fund the major developments of the company in its residential, office and retail businesses in Cebu.

“The firm will redouble its efforts to take advantage of the opportunities brought by the country’s recovering economy,” said Francis Monera, president of Cebu Holding, Inc. (CHI), during the firm’s annual stockholders meeting yesterday.

CHI is a publicly listed company engaged in real property ownership, development, marketing and management. It is an affiliate company of Ayala Land Inc.

Monera said the company will launch this year three residential units, a business process outsourcing project and a mall re-development project.

He said they are finalizing plans to add leasable space with an expansion project that will complete the full circle design of Ayala Center Cebu.

The re-development, he said, will provide more leasable spaces for local and international brands to the mall’s merchandise mix.

Ayala Center Cebu generated a total revenue of P696.77 million, or 19 percent higher than it did in 2008.

Monares attributed this to higher rental rates and sales per square meter and the full operation of The Terraces.

He said the firm will also forge partnerships with other strategic business units of Ayala Land to maximize industry expertise within the group as they set up new projects and explore markets this year.

“We have started, through Cebu Property Ventures and Development Corporation (CPVDC), to partner with the Ayala Land Businesscapes to create the eBloc Tower which was fully-leased out last year. A partnership with Avida is also underway for another development of affordable residential condominiums in Asiatown I.T. Park intended to fully complement the other amenities in the park,” Monares said.

CPVDC is a subsidiary of CHI. It is the owner and developer of Asiatown IT Park.

The firm, Monares said, will also invest in two residential condominium projects within Cebu Business Park,

“One will be here at the City Sports Club Cebu. This will allow us to unlock the value of the land as well as boost the value of ownership at the club. The other residential condominium will be at the Park Tower area, an addition to the two other towers in the enclave which have already been sold out,” he said.

Each residential project will have 500 units.

The remaining undeveloped land within Asiatown I.T Park will also be developed into offices to cater to IT and IT-enabled locators.

CHI chairman Antonino Aquino said the firm will accelerate the development of the projects in line with Cebu’s growing economy, resurgence of tourism, excellent talent pool and vibrant business climate.

Last year, CHI registered a consolidated revenue of P1.29 billion and a net income after tax of P302.19 million, lower than the previous year levels.

The after tax margin was at 23 percent compared to the previous year’s 27 percent.

“However, factoring out the effect of the 1.7 hectare one–time Cebu Business Park transaction in 2008, CHI exhibits an actual growth of nine percent in revenues and 18 percent in net income,” Monares said.

Its total assets stood at P5.77 billion at yearend with a two percent increase of P114.63 million. Of the total consolidated assets, P1.84 billion is classified as current, representing an increase of 17 percent from the previous year’s level.

Published in the Sun.Star Cebu newspaper on April 30, 2010.

Capitalize on eco-tourism potential of Mactan: Pelaez

MACTAN Island has long been left behind by similarly endowed islands in neighbouring Southeast Asian countries where development is fast.

Mayoralty candidate and Mactan Island Chamber of Commerce and Industry former president Efrain Pelaez Jr. said the potential of the island is wasted because of the lack of infrastructure and a deteriorating environment.

The presence of world-class resorts and hotels in Mactan Island is not complemented with infrastructure like coastal boulevards that could attract more tourists to the area. Pelaez said the island does not even have smooth sidewalks for guests who want to explore the island.

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He said Lapu-Lapu also lacks well-constructed roads.

Pelaez also said that while economic development should be a priority, protection of marine life and proper garbage management should not be forgotten.

He also said coordination with the Department of Environment and Natural Resources is necessary to improve the tourism infrastructure in the island while maintaining ecological balance.

Pelaez said Mactan Island has a large potential for eco-tourism and the government should capitalize on this. He also said goat farming and shell craft cooperatives can also help uplift the lives of city residents.

Pelaez said he is running for the city’s top post to develop healthcare, housing, education, the environment and end corruption. He said he wants to let everyone know that “Mactan is open for business.” (Lareina Devi Rajah, UP Mass Com Intern)

Renewable energy investment may be costly but operations cheaper: engineer

By Rinnah B. Flores

INVESTMENTS in renewable or clean energy plants are costly, but the operational costs of such plants are cheaper than conventional ones, an energy official said.

Engineer Jun Baclay of the Department of Energy (DOE) made the comment during a visit to the first centralized solar power plant in the Philippines on Pangan-an Island in Lapu-Lapu City.

Renewable energy is a critical component of the government’s plan to provide enough electricity to the country in the coming years.

In its website, DOE said one of the energy sector’s objectives is to pursue cleaner and more efficient energy utilization and to adopt clean technologies.

Investments in these cleaner plants are funded by the private sector.

For example, the Ambuklao Hydro Electric Plant is a joint project of SN Power of Norway and Aboitiz Equity Ventures. It has a budget of $280.4 million for its rehabilitation costs. It is expected to produce 105 megawatts (mw) of electricity upon completion in December.

The first commercial capacity on-grid wind turbine farm in Southeast Asia was realized through the efforts of Philippine and Danish businessmen and engineers and the
Danish International Development Agency. The Northwind Farm in Bangui Bay, Ilocos Norte has an investment of $54 million.

“Only four people are mainly manning the 20 wind turbines located in a nine-kilometer strip of shore in Bangui Bay.

Each turbine is rated to produce 1.65 mw,” said operations manager Dino Tiatco of Northwind Farm.

On Pangan-an Island where the solar power plant providing energy to 236 households is located, its barangay cooperative is operating the plant, while Baclay visits at least once a month.

The plant is a joint project of the Philippines and Belgium, with an investment of P22 billion. Its battery alone costs P6 million.

The Cebu Energy Development Corp. (CEDC) launched last month the first 82-mw unit of its 246-mw clean coal plant located in Toledo City. With the completion of the two remaining units later this year, it is expected that there will be enough electricity for the province by the end of the year.

The investment of $450 million in the three units is the “single largest power plant investment in Cebu,” CEDC said earlier in a statement.

“The project uses clean coal through the Circulating Fluidized Bed (CFB) technology which reduces pollutants to negligible levels. There is another 50-mw clean coal plant located in Mabalacat, Pampanga,” said Mae Catherine Melchor of CEDC.

CEDC is a consortium of Global Business Power Corp., Formosa Heavy Industries and Abovant Holdings, a joint venture of Aboitiz Power Corp. and Vivant Corp.

Based on current projections of the DOE, renewable energy will provide up to 40 percent of the country’s primary energy requirements over the 10-year period beginning in 2003.

Cebu City in talks to construct fast-ferry port, sports facility in SRP

Written by Wilfredo Rodolfo III / Reporter

Monday, 12 April 2010 23:56

THE Cebu City government is in the advanced stages of negotiations to build a fast-ferry port and a water- sports recreation facility on the 240-hectare reclaimed South Road Properties (SRP). Cebu Investment Promotions Center (CIPC) managing director Joel Mari Yu said the two developments are set to start soon, coinciding with separate wholesale developments being undertaken by the Filinvest and SM groups on the reclaimed property. “We cannot reveal the names of the developers, but we are talking to them right now,” Yu said. The CIPC is a nonprofit organization subsidized by the city and provincial governments to market investment opportunities in the city, as well as serve as a one-stop assistance center for investors and businessmen. The water-sport facility will occupy one side of the unfilled portion of the SRP, called Pond A. It is a 60-hectare lake left unfilled after legal troubles hounded the project in the mid-1990s. Yu said the facility will take up 15 hectares on one side of the lake. Work is also set to start on a fast-ferry terminal at the former Kawit island, now the cornerstone development of the whole SRP. Fast-ferry operator Ocean Jet is set to launch their ferries from SRP to Tagbilaran City in Bohol and Dumaguete City in Oriental Negros. Completed in 2001, the SRP was built with a ¥12-billion loan obtained by the city from the Japan Bank of International Cooperation (JBIC). The loan is payable until 2020. Joint-venture deals with Filinvest (52 hectares) and SM (32 hectares) are now generating an estimated P1 billion in amortizations for the city. The amount covers almost half of the P2-billion annual operating budget of Cebu City. After signing the latest deal with SM, Mayor Tomas Osmeña announced the city will double the lot prices at SRP.