Avoiding costly mistakes to cash in on boom

(The Philippine Star) Updated December 10, 2010 12:00 AM

Abarquez (third from left) with Jones Lang Lasalle Leechiu’s Project and Development Services team.

MANILA, Philippines - By 2014, an additional 4,000 hotel rooms will be coming onstream in Metro Manila, according to a study by global real estate services firm Jones Lang LaSalle Leechiu.

Among the firms seeking to cash in on a booming tourism market supported by government through tax incentives are the Raffles group which is putting up a luxury residence and all-suite hotel in Makati, the Fairmont Hotel which will be part of the Raffles complex, the Shangri-La group, Radisson Hotel, Holiday Inn, Ayala Hotels, Inc. among a host of other smaller players.

According to Lindsay Orr, chief operating officer of Jones Lang LaSalle Leechiu, developers new to the hotel sector are likely to pay a stiff price for mistakes made along the way as they learn the specific requirements of the industry. Orr recalls that just as it took some time for developers to master the needs of the BPO sector, the same process is likely to happen as more hotels and hospitality facilities are built out to meet the growing demand for tourist accommodations. Jones Lang LaSalle studies disclose that tourist arrivals have grown steadily from close to one million in 2003 to 3 million last year.

“There’s a tuition fee of sorts developers pay before they master the most efficient way to service a new sector,” says Orr, whose firm operates in 60 countries. Jones Lang LaSalle is a financial and professional services firm specializing in real estate. In the Philippines, the company operates as Jones Lang LaSalle Leechiu.

By offering potential clients best practices, lists of suppliers and other relevant data mined from other Jones Lang LaSalle offices in the Asia Pacific region with active and more mature hotel sectors, the company’s Project and Development Services Group hopes to help owners and investors minimize costly mistakes. Projects managed by Jones Lang LaSalle’s Hotel Project Services unit in the region include the Ibis Hotel in Singapore, the award-winning Cape Yamu in Phuket Thailand and Westin Hotel-Hyderabad, India.

According to Kiko Abarquez, project and development services group head, the unit offers advice on design, construction and risk management for firms constructing new as well as refurbishing old buildings.

Having done fit-outs for more than 300,000 sqm. of mostly office space in the Philippines, Jones Lang LaSalle Leechiu has developed a library of costs. This wealth of knowledge allows the company to manage costs effectively and, 95 percent of the time, meet the construction budgets of its clients. As project manager, JLLL Project and Development Services Group represents the client as it oversees and audits the various activities and products of architects, suppliers and the contractor involved in a project.

Abarquez explains that the aim of a project manager is “to match the designer’s requirements for looks with the client’s requirements for costs.” He relates that designers may not be familiar with all the materials available in the market and may perhaps suggest a wall to be covered with costly fabric when a paint treatment will achieve the same desired effect for less.

Among the innovations Jones Lang LaSalle Leechiu is currently introducing to the industry is a paperless project site with clients, suppliers and contractors all communicating through a website to be managed by the firm. Abarquez points out that significant delays are caused by poor communications and delays always have a cost. Plans and schemes written on paper for the approval of the client are likely to get stuck at a secretary’s or assistant’s desk. Things get misplaced in the paper shuffle and must be reconstructed. Because one supplier is late, another one cannot proceed with its work.

(The Philippine Star) Updated November 26, 2010 12:00 AM

MANILA, Philippines - Home developers have taken to the skies to meet the ever-growing demand for living space in a vertically challenged, so to speak, Mega Manila. While sophisticates prefer to unwind contemplating the city lights from the 40th floor of their posh high-rise dwelling, with glass of wine in hand, many still seek that sense of community and more breathing space. Mid-rise condominiums offer this advantage as they can be located within quiet residential villages without putting a strain on the community’s utilities.

True to its vision of offering Filipinos the ideal home that each one can afford, Vista Land, the country’s largest home builder, through its condominium development arm, Vista Residences, has built on years of experience to acquire a clear perspective of what house-hunting Filipinos seek. “Be it a sophisticated high-rise or a homier mid-rise development, whether you are a student, a single professional, a newly-married couple, a growing family, or a retiree--Vista Land has just the place for you in mind,“ affirms Red Rosales, division head of Vista Residences.

Vista Lakefront, a thriving, multi-community development center, houses the mid-rise Presidio, Vista Residences’ first inner city development. Together with communities of exclusive homes, high-rise dwellings and, in the future, an upscale corporate, commercial and leisure center, Vista Land envisions the area to be another important central business district. Within this sprawling setup, Presidio residents enjoy a self-contained, spacious, resort-like community that gives a sweeping view of Laguna de Bay and the Sierra Madre Mountains, wide pedestrian-only walkways, an open town square for dining al fresco, and a Sunday market.

Presidio offers residential and mixed-use structures comprising studio, one-bedroom and two-bedroom units designed for singles and young families, which can be bought as multiple units to create more spacious custom-designed residences. It also has a clubhouse, living and leisure facilities, home concierge and condotel services. The airy clubhouse enhances the resort theme, with its elegant all-white pavilion structure, wide windows and large, open doorways. There you’ll find a free-form swimming pool, a lobby lounge, social halls and function rooms, a fitness center, game room, meandering jog paths, barbecue pits, and private courtyards.

Presidio is all about modern secluded living but its accessibility is its most attractive feature, with public transportation going to Makati, Manila and Alabang close by, 24/7; and C-5 and the future C-6 to take you to the other important points in Metro Manila at half the time. It’s roughly a five-minute drive to Alabang Town Center, Festival Supermall and the Sucat Interchange. Via C-5, it is about 15-20 minutes to Makati and Bonifacio Global City, and 30 minutes to Ortigas. By the time C-6 along the Coastal Road of Laguna de Bay is completed, travelling further south is expected to speed up.

For more details on Vista Residences developments, call (63 2) 584 1182 or mobile 0917 857 6494 or log-on to http://www.vistaresidences.com.ph/.

Township office projects promote sustainability

(The Philippine Star) Updated November 19, 2010 12:00 AM

Eastwood City is Megaworld’s pioneering and successful township project where people can live, work, play and shop 24/7.
MANILA, Philippines - Publicly listed developer Megaworld Corporation declared its township projects as a model program that promotes sustainability during the 1st Sustainable Building Technology Conference held last Nov. 11-12 at the SMX Convention Center.

In the presentation of its Sustainability consultant, Edmond Maceda, township developments were cited as a model for sustainable land use planning. According to Maceda, Megaworld’s townships promote “densification over sprawl” and transportation connectivity. A small township, at 50 hectares or less, promotes walkability from the home to the mall or office. It also has an abundance of public transport and depending on the project location, access to mass train lines.

Since the township residents are encouraged to live, work, play and shop in these compact urban centers, they individually consume less electricity and water, buy a lesser quantity of items and discard less trash and spend far less time in automobiles. Thus, by living in a compact city thousands of individuals make their contribution towards lessening greenhouse gas emissions, according to Maceda.

He identified four of Megaworld’s township projects where these benefits are now being realized: Eastwood City in Quezon City, McKinley Hill and Forbes Town Center in Fort Bonifacio and Newport City across NAIA Terminal 3. Soon, more residents will realize the benefits of township living in Manhattan Garden City at the Araneta Center and Cityplace in Binondo.

The township model will be replicated in Megaworld’s other upcoming projects, specifically Bonifacio Uptown and McKinley West, both also located in Fort Bonifacio.

Megaworld also shared its experience in sustainable property management, citing one of its office buildings as a case study. Its 1800 Eastwood Ave. office project, loaded with green building design features, won the ASEAN Energy Award in 2009.

The award-giving body noted the building’s lighting management features, elevator use, waterless urinals and collaborative efforts with tenants for electricity optimization. The building’s spacious lobby maximizes the use of natural lighting, thus, only a few fixtures are on at daytime.
Towards the end of his presentation, Maceda shared with the audience presentation materials from the International Green Building Conference in Singapore last year. He also encouraged them to browse through leading sustainability sites such as greenbiz.com, facebook.com/green and green.yahoo.com. He also shared a link to the company’s corporate site: http://www.megaworldcorp.com/

Government studies plans to build 150,000 ‘socialized’ housing units by 2011

Thursday, 11 November 2010 13:46 Max de Leon / Reporter

THE government is now lining up several schemes to achieve its target of building 150,000 socialized housing units by 2011, including those for the relocation of squatters or informal settlers.
Vice President Jejomar Binay, who is also housing czar, said one direction they are considering is lowering the interest rates for housing loans through Pag-Ibig that would be affordable to the masses, particularly loans in the P400,000-and-below bracket.
“Now it is 6 percent [per annum] for P400,000 and below. Maybe we could reduce that for that amount to 5 percent,” he said, adding that for loans in the P300,000 level, the plan is to bring the interest rates down to 4 percent, and then 3 percent for P200,000 and below. 
Also, Binay said the government will seek the help of local government units in undertaking socialized housing projects. “The LGUs can provide the lots and we will provide the financing.”
He said this would enable the offering of housing units on the P70,000 to P80,000 price levels and lead to reducing the current backlog of about 3.7 million houses.
The government will also strictly implement the law that requires developers to allocate at least 20 percent of their total investments to socialized housing and the development of socialized housing should be spread throughout the country and not just in provinces near Metro Manila, he said.

BLISS-type housing planned in Davao slum area

Saturday, 02 October 2010 09:30 Manuel T. Cayon / Reporter

Davao City–A group of developers under the Chamber of Real Estate Builders Association (Creba) has been discussing with the city government a plan to put up several midrise and low-cost condominium buildings in a slum area in downtown both for the slum dwellers and the workers.

Carlos Vargas, president of Creba-Davao City chapter, would not divulge yet the supposed area of the BLISS-type project, but indicated that the Davao City Planning Office has already identified it.

The area would cover 40 hectares of land mostly inhabited by squatters, and Vargas said he has already started talks with the landowner. “We would not name the place yet, because we don’t want to create more squatters now in the place.”

The project would involve putting up several buildings of about four to five stories, and the number of units would depend on how much land the landowner would allow them to develop.
“This would be a green building. We would use bricks, which are resistant to heat, and we would be putting up rain catchment, where residents would be using the rain water for most of their common household water use,” he said.

The initial design would have a 24-square-meter floor area for each unit, “but as to how many units per floor would really depend on the area, and we would try to persuade the landowner to donate at least 20 percent of this area to accommodate the squatters.”

“The landowner would have all the advantages in this arrangement. Imagine donating this portion to the city and putting the squatters in a more secured housing unit than continue holding on to the land without benefiting from it,” he said.

So far, the landowner was already informed of the tender, and “he was positive,” he said. “What we would discuss again with him is how much would he donate.”

In their talks with the city government, Vargas said the city wanted an affordable rate to ensure that squatter families and ordinary workers could afford a unit. “It wanted to offer the units for rent, at about P1,000 a month.”

“We suggested to sell it, at P250,000, or about P2,500 monthly amortization,” he added.
The project would solve at least the city’s two main problems: the housing backlog and putting the squatters and the workers in an affordable housing unit that is accessible to their work, schools and shopping places, he said.

Creba offered to build the mid-rise and low cost condominium unit for the poor a week before Mayor Sara Duterte had announced that she wanted the poor residents to acquire their own houses.

“It appeared that we were then on the same plane, and we started the talks immediately. The city government reacted positively, too,” he said.

The costing was not yet discussed nor was there any agreement. “We are currently designing the project, which we would present to the city government in two weeks.” He said the cost may only be about P12,000 per square meter.

The builders would be a consortium, composed of some members of Creba, “and ideally [it should] have one developer for each condominium building so that the units could almost simultaneously be made available.”