ALI invests P5 billion more in Cebu

By Katlene O. Cacho

Saturday, February 2, 2013

AFTER investing a total of P14 billion in Cebu in the last three years, property developer Ayala Land Inc. (ALI) and its subsidiary Cebu Holdings Inc. (CHI) are pouring in a fresh investment of P5 billion for its various projects in Cebu this year.

Included in the capital expenditure (capex) for Cebu is the P1.6-billion ACC Corporate Center, which will soon rise on the western side of the Ayala Center Cebu property along Bohol Street, and other residential and retail projects.

ALI president Antonino Aquino on Wednesday said this new investment for Cebu is a testament of their optimism and confidence in Cebu’s thriving economy, as shown by the performance of Cebu Park District, which covers the Cebu IT Park and Cebu Business Park (CBP).

He said the establishment of the ACC Corporate Center will now make the Cebu Business Park development fully-integrated with elements like hotel, retail, residential and corporate offices in place.

“This will be a new home to business process outsourcing (BPO) locators,” Aquino said during the project’s ground-breaking ceremony.

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3,000 employees

The ACC Corporate Center, which sits on a 3,424-square-meter property, is a envisioned to be a 20-storey, Grade A building, which will cater to the office space requirements of BPO locators and will complete the “live, work, play” concept at the CBP.

The building will have 12 floors of office spaces with a total gross leasable area of 28,574 sq.m., two floors for retail establishments which will operate 24/7, and six levels of parking.

The building can accommodate at least 3,000 employees.

“This is the first of its kind here and is completely attached to the Ayala Center Cebu. It is located near the terminal, the proposed bus rapid transit and is situated in the very center of things,” said Aquino.

He noted that new and existing BPO firms have already expressed interest in the building, but no formal agreements have been signed yet. “One unique element of our products that has attracted buyers is that our products are right in the middle of a thriving community,” he said.

ACC Corporate Center’s completion is slated in the second quarter of 2015.

As for its other projects, Aquino reported brisk sales of its residential projects both at the CBP and Cebu IT Park.

He said the units of high-end 1016 Residences and two towers of Solinea condominium projects are already sold out. The company is now preparing the follow-through of the third tower of Solinea and Avida Riala at the Cebu IT Park.

New wing this year

CBP and Cebu IT Park have five residential projects each that are still under construction.

Meanwhile, Ayala Center Cebu is preparing to open its new wing by the fourth quarter this year.

According to the mall’s general manager Clavel Tongco, most of the tenants in the new wing are foreign brands, including some that are found at Ayala’s Greenbelt 5. Among the confirmed locators is Rustan’s, which will have a three-level retail space. It will also have a supermarket and high-end brands like Zara.

The fourth level of the new wing will house more dining establishments.

The Phase 2-B project has cost the ALI and CHI some P2.5 billion.

Rowena Tomeldan, ALI vice-president and head for operations and support services commercial business group, said the company is aggressive in expanding its retail operations nationwide, given the property boom in the country.

27% growth as of September

She said the company is also considering a retail development at Cebu IT Park. “These are still rough plans but we will definitely add more retail projects in the IT Park.

We are just careful in the selection of retail stores,” she said, on the sidelines of
the press conference.

The retail group has recently expanded in Davao, Cagayan de Oro and Bacolod. The firm also ventured into community centers where they allotted spaces for homegrown products.

ALI’s net profit from January to September 2012 grew by 27 percent year-on-year to P6.62 billion. Its consolidated revenues for the first nine months reached P39.01 billion, 20 percent higher from 2011. The bulk of its revenues were from the hotel and residential segments, which went up by 20 percent to P36.89 billion. For Project information contact us at +639173236123.

Tax notes: Location restriction for tourism economic zone enterprises

Monday, February 4, 2013

THE Board of Directors of the Philippine Economic Zone Authority (Peza) has approved new rules for tourism economic zones (TEZ) where development must take place outside Metro Manila, Cebu City, Mactan Island and Boracay.

Under Peza Board Resolution No. 12-610, TEZ and its locator-enterprises in Metro Manila, Cebu City, Mactan Island, and Boracay Island shall no longer enjoy the following tax incentives enjoyed by economic zone developers and locator enterprises:

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1) five percent gross income tax incentive granted to economic zone developers of TEZs;

2) Income tax holiday (ITH) and five percent gross income tax to locator enterprises of TEZs, except for tax and duty-free importation and value-added tax (VAT) zero-rating on their local purchase of capital equipment.

Existing TEZ developers/operators as well as TEZ locator enterprises in Metro Manila, Cebu City, Mactan Island and Boracay Island will continue to enjoy the tax incentives granted to them by the Peza. However, TEZ developers/operators and locator enterprises in the aforesaid areas that have not signed their registration agreements with Peza will be covered by the new policy. Henceforth, no more new TEZs will be allowed to be established in the said areas.

(Source: Punongbayan & Araullo)

Fuente Triangle to build new residential tower

By Mia A. Aznar

Wednesday, February 6, 2013

AFTER successfully launching three residential condominium projects, Fuente Triangle Realty Development Corp. is ready to embark on a fourth project on Osmeña Blvd.

Vice president for marketing and sales Ben Turcuato told reporters Tuesday that the Fuente Tower 4 is set to begin construction in two weeks and will be 24 to 26 storeys. Fuente Triangle is a subsidiary of J. King and Sons Co.

Originally, the concept for the fourth tower was to have 95 loft-type units at seven units per floor. However, they decided to offer smaller units at a lower price range as they saw more demand coming from this market.

The Fuente Tower 4, like their other towers on Osmeña Blvd., will also be linked to Tower 2, which holds Club Ultima, and Tower 1, which holds the Crown Regency Hotel, giving condo owners full access to the club and hotel facilities.

Turcuato admitted they had to “change the mindset” of most Cebuanos about acquiring condominiums, saying many still prefer to buy house and lot units. “They think being in a condominium is too luxurious.”

For him, living in a condominium close to the city is economical because there are no hours lost to long travel and that units come with free security, garbage collection, concierge services, gym membership and other conveniences. All these, he said, are included in the P1,500 monthly dues at their third condominium project, the City Loft along Gen. Maxilom Ave.

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Payment terms

He said units such as the City Loft run from P2.4 million, paid through financing terms from banks and the Home Development Mutual Fund (Pagibig) .

Pagibig also increased their loanable amount for housing from P3 million to P6 million. Those in the real estate business are glad about this, as it means Pagibig can also offer financing for most comdominium projects.

Turcuato said those earning between P25,000 and P30,000 can easily afford to buy units and live near their workplace.

Each one-bedroom unit of the City Loft has a total area of 28.95 square meters. It comes with a Club Ultima membership, swimming pool and jacuzzi at the rooftop and free seven hotel nights a year at any Crown Regency Hotel or any of its 2,000 partners around the world.

Turcuato said they have sold 34 percent of the City Loft units. They expect to complete construction this year and turn over units to the buyers by first or second quarter of 2014.

As for the Ultima Residences Ramos Tower, there is only one unit left for sale. Unit owners of this 33-floor condominium have the option to join the condotel arrangement operated by City Suites Condotel Management Corp., an affiliate of Crown Regency. For more information, contact us at +639173236123.

Homeowners’ groups, condos lose tax perks

By Katlene O. Cacho

Thursday, February 7, 2013

THE Bureau of Internal Revenue (BIR) has removed tax perks of homeowners’ associations, condominium corporations and recreational clubs.

In an interview with Sun.Star Cebu, Punongbayan & Araullo (P&A) director for Cebu and Davao- Tax and Payroll Outsourcing Wendell Gahinhin said these establishments are now required to pay an income tax of 30 percent based on net income and a 12-percent value-added tax (VAT).

He said that although the Aquino administration stuck to its promise not to impose new taxes, the BIR recently released new interpretations of tax rules aimed at increasing revenue collection this year.

“President Aquino has kept his promise of no new taxes and BIR commissioner Kim Henares also kept her promise to plug loopholes by correcting wrong interpretations of tax rules and strictly enforcing these taxes to taxpayers,” said Gahinhin.

The BIR targets to raise P1.253 trillion this year, higher than its 2012 goal of P1.066 trillion.

Previous rulings of the BIR said the collection of association dues and other assessments/charges for condominium corporations and homeowners association is exempted from income tax because “it is merely held in trust to be used solely for administrative expenses in implementing its purpose and from which both could not realize any gain or profit.”

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The association dues are also exempted from VAT because condominium corporations and homeowners association “do not sell, barter, exchange nor lease any goods or render any service for a fee but merely implements the administration of the required services to collect the association dues from the unit owners.”

But Gahinhin said the BIR clarified that these are wrong interpretations.

The BIR ruled that the amounts paid in as association dues or membership fees by members or tenants are “part of the gross income and are subject to income tax.”

Association dues, membership fees and other assessment or charges collected by the homeowners association and condominium corporate are subject to VAT “since they constitute compensation for the beneficial services it provides to its unit-owners, tenants, and homeowner-members.”

“While these would bring in changes to these establishments, on the other hand, the government can collect more taxes given the property boom in the country,” he said.

The BIR will also impose taxes on recreational clubs, he said.

It ruled that “clubs organized and operated exclusively for pleasure, recreation and non-profit purposes are subject to income tax and VAT on their income from whatever source, including but not limited to membership fees, assessment dues, rental income, and service fees.”

Gahinhin was one of the speakers during the Tax Update Seminar hosted by P&A in cooperation with Finex Cebu last Wednesday at the Harolds Hotel.

The seminar was attended by 100 participants from various corporations.

Gahinhin is confident that BIR would hit its collection target this year so long as it would remain aggressive in its tax enforcement, particularly on business establishments and individuals, specifically the three million professionals.

Gahinhin urged individuals and business establishments to declare and pay the right taxes so they could take advantage of the new investments coming in.

“Professionalizing the business is one way for them to take advantage of the new investments but part of professionalizing the business is compliance and paying the right taxes,” he said.

The increase of tax collection would translate to more infrastructure developments, job generation and helps uplift lives of ordinary people through improved basic services, Gahinhin said.

Optimistic forecasts

By Katlene O. Cacho and Mia A. Aznar

Friday, February 8, 2013

WHETHER they are established business owners or just like practicing the art of feng shui, most are optimistic that the year of the water snake will be a good year for business.

For feng shui expert Aldric Dalumpines, the arrival in droves of tourists in Cebu to witness the Sinulog Festival was just the start of good things for the province.

“Water snake connotes great money and money-making opportunities, generally, with water being a symbol of money in feng shui. Thus it will rain and flood literally with water and money,” Dalumpines said.

For Chinese business owners in Cebu, the year of the Water Snake could be a turnaround year for most businesses.

Johnie Lim, president and chief executive officer of Body and Sole Franchise Corp., said 2013 is a good year for business because a snake is a very strong creature.

“A snake can symbolize easy movement whether vertical or horizontal. We believe that this is a year of transformation, where any past mistakes can be used to make our dreams come true by starting all over,” said Johnie.

His family maintains two calendars at home: a Philippine calendar and a traditional Chinese calendar so they can plan for the entire year.

The water snake’s qualities like being cunning, aware, graceful, tenacious, and resilient, will make businesses continue to prosper this year, said former Mandaue Chamber of Commerce and Industry (MCCI) president Eric Ng Mendoza.

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Construction

He believes industries in Cebu will continue to grow, particularly construction and knowledge/business process outsourcing.

However, Dalumpines warns that the snake’s qualities are not all positive. Snakes are often symbols of traitors.

“Back to back with it is the negative or yin trait of the snake that every success brings envy, betrayal to the victor,” Dalumpines said. In business, one has to watch out for traitors and shortchanging. He also said relationships could be affected because of greed.

This is something Johnie agrees with, saying there will also those who will try to rob others of opportunities and ideas.

Since Cebu is in the southwest, Dalumpines said its location “throws havoc by way of illness” to mothers or matriarchs of companies.

“Thus proper geomancy remedies must be undertaken to avert production disruptions at home and at work, by consulting a geomancer or real feng shui expert accordingly, not just wannabes,” he said.

Growth areas

Asked what industries he believes will do well this year, Dalumpines identified tourism especially water-related entertainment like resorts, hotels, bars, telecoms, load business, internet business and business process outsourcing. He also said lending, banking, micro finance, money transfers, money changing and pawnshops “will reach new peaks.”

With 2013 being an election year, Dalumpines foresees the sectors in food and beverage, construction and real estate to do well. But export companies and overseas workers will have to contend with a strong peso.

For entrepreneurs to take advantage of the bright prospects this year, Mendoza said they should adopt the best practices like good governance, accountability and transparency in their respective businesses.

But whatever positive vibes the year will bring, MCCI president Philip Tan said faith coupled with hard work would make one successful.

“Blindly believing in prosperity in every new year by doing nothing will not make any difference. Hard work coupled with innovation and kindness is a key to peace and continuous blessings in everything we do,” he said.

One who is excited for what the new year has to offer is Richard Lim, president of Johndorf Ventures Corp. Lim believes vast opportunities are in store for his company this year. He said the P1.5 billion worth of housing projects in the Visayas and Mindanao speaks well of how bullish they are.

Families of Chinese descent still observe the many traditions their ancestors had. On the eve of the Chinese New Year, Johnie said they all wear red.

They use red curtains or tablecloths, as it means good energy and luck to the house occupants. They prepare steamed fish for abundance; noodles, which symbolize long life; tikoy, which symbolizes sweetness and family togetherness; and round fruits like mandarin oranges and pineapple as symbols of good luck.

His family also visits Chinese temples to seek guidance, especially when they are planning to build a house, buy a car or expand the business.They also practice the traditional giving of red “ang pao” (Chinese red money envelope) to children and relatives, symbolizing wishes for prosperity and financial well-being.

Dalumpines advised: “As you mind your business this year, do feng shui with a picture of your beneficiaries in mind. Don’t just do it yourself for yourself - that is selfishness.” He reminded entrepreneurs to earn profits the honorable way.