(The Philippine Star) Updated December 27, 2009 12:00 AM

MANILA, Philippines - Fresh from meeting 2009 head on in the face of global economic recession, the countryï¿½s most trusted real estate company, Ayala Land, Inc. (ALI) goes full throttle next year with a more aggressive posture.

Ayala Land takes on 2010 with the most number of new projects to be launched within a single year ever. Antonino T. Aquino, Ayala Land president, announces new initiatives on the establishment of multiple growth centers across the Philippines to bring to more areas the well-recognized expertise of Ayala Land in enhancing land, enriching lives. He says, ï¿½Weï¿½ll have the busiest year ever as weï¿½re expanding in geography, in the products that we offer including new business lines and in the market segments that we cater to. There will be a dynamic interplay of our projects and where we used to be focused only on the traditional segments, now weï¿½ll be expanding for the benefit of our customers.ï¿½

There is no landscape too small or too large to change

ï¿½We are thinking of more than a dozen different locations, starting off in the North with Baguio, Angeles in Pampanga, Subic and in five locations in Southern Philippines namely Cebu, Cagayan de Oro, Davao, Iloilo and Bacolod. We are making sure that we are coming around with product offerings that are best suited for the market and which will show the best practices that Ayala Land is known for,ï¿½ he states, as he proceeds to give an overview of activities to take place.

In Baguio next year, the retail area and the BPO complex will begin development in Camp John Hay, allowing customers to enjoy the natural beauty of Baguio. Meanwhile in Subic, a bustling development will arise with a mix of retail, BPO and residential components.

In Pampanga, the company relishes the market acceptance of the Marquee mall in levels beyond expectations।ï¿½In the pipeline for the area is a very nice residential development right across the mall. It will be a mid-rise project with a Serendra feel,ï¿½ enthuses Aquino.

With the successful expansion this year of Ayala Center Cebu with The Terraces, the company is set to have its first foray with Alveo and Avida offerings in the first quarter in Cebu.

Meanwhile in Davao, where Ayala Land jumpstarted its entry with the lifestyle mall, Abreeza Mall, new residential developments are slated to be launched coupled with a BPO complementary project, states Aquino. Similar mixed-use developments are also planned for in Cagayan de Oro.

Northpoint, a project of Ayala Land Premier in Bacolod, will host a new commercial development along the main road fronting it, making the area a multiple growth center. Aquino points out, ï¿½The whole idea behind our multiple growth center strategy is to highlight our mixed-use experience as a major differentiator of our organization. Weï¿½re known for how we masterplan things and how our projects develop into excellent growth centers, bringing in a new lifestyle.ï¿½ This will also be realized in the mixed-use project to be developed in Iloilo.

In the Greater Manila Area, where Ayala Land focused largely in Makati and in the South, year 2010 sees the company pushing thru with plans for development covering the North Triangle area in Quezon City. Ayala Land again manifests its expertise in master planning, envisioning for the city a thriving business district that Quezon City still needs to date. ï¿½We want this to happen in a shorter time as we know there are business locators and partners who would like to see the priming of the area accomplished soonest,ï¿½ Aquino declares.

A piece of land is never just a piece of land

In line with bringing in a new lifestyle, first off to be introduced as a new product in the retail segment will be the neighborhood and community centers. These will be quaint shops and retail establishments that will support residential and BPO developments. Ayala Land is also exploring hotels and tourism-related products to expand its portfolio.

Expansion projects and the opening of new phases of other existing developments are also set to go on full swing.

Ayala Landï¿½s continued redevelopment of Ayala Center is brought to another exciting stage with the opening of the Ayala Triangle Gardens. According to Aquino, this will be the starting point for ramping up the Makati Central Business District with projects that will include upgrading the Glorietta retail center as well as launching a high-end residential play for Ayala Land Premier in that area, very much like how The Residences at Greenbelt (TRAG) is just a walk away from the mall. Other new residential offerings by Alveo will be in the office enclaves of Salcedo and Legaspi Villages. ï¿½These are excellent follow-throughs for the continued upscaling of the areas in Makati,ï¿½ he describes.

The Bonifacio Global City (BGC), more popularly recognized as the Home of Passionate Minds, will witness Bonifacio High Streetï¿½s expansion to complete its 1-kilometer development plan to end closer to the Mind Museum, which will be the best science museum in the country. Also known as the ï¿½live, work, and playï¿½ zone, the city will likewise witness next year the addition of another building offering a total of 31,000 sqms of BPO space along with the launch of Avida Towers BGC and a new phase of Two Serendra, The Meranti.

Alabang will in turn follow thru with enhancements at the Alabang Town Center with an additional retail complex featuring department stores and supermarkets. Aquino added that Avida Towers Alabang will also be launched.

Further South in Laguna, the countryï¿½s first eco-community and now regarded as the nationï¿½s sustainability capital in Ayala Landï¿½s portfolio, NUVALI, earlier enjoyed highly successful take-up for its Ayala Land Premier (ALP) offerings: Abrio, Montecito and recently Santierra.

The sterling record provided fresh proof of Ayala Landï¿½s ability to offer unique and highly-valued propositions to the high-end market. Where Ayala Westgrove Heights and Ayala Greenfield Estates further South fulfilled desires for lakeside sceneries, rolling hills and orchard-like environments, these new ALP offerings in NUVALI addresses particular aspirations for sustainable lifestyles.

Alveo will also be launching a project in NUVALI in the 2nd quarter of next year, while Avida will be expanding with Avida Settings Phase 4 and introducing new projects, Avida Village NUVALI and Avida Estates NUVALI.

Aquino also announced the introduction of more retail elements in NUVALI alongside the Sta.Rosa-Tagaytay road, with the construction of a new supermarket that enhances the Solenad retail area which has already scored distinct success in its provision of dining, shopping and convenience retail in the area.

ï¿½We expect NUVALIï¿½s overall retail success and launch of residential developments to add to the attractions of One Evotech as a premium space for BPO locators,ï¿½ states Aquino as he reveals the addition of the second BPO building next year.

Avida will be very busy launching some new phases in its existing developments, like Tower 5 for Avida Towers New Manila, Tower 5 for Avida Towers San Lazaro, and Tower 7 in Avida Towers Sucat, all to be launched in the 1st quarter and Avida Settings Phase 2 in Cavite in the 2nd quarter.

Cebuï¿½s Amara and Alegria Hills in Cagayan De Oro will likewise see the addition of new phases.

A testament to enriching lives for more people

To top if all off, Ayala Land will be coming up with a breakthrough by launching projects in 2010 entering a new market segment. Aquino announces, ï¿½As part of being socially-responsible and contributing to nation-building, more will be benefiting from Ayala Landï¿½s quality and level of service through ï¿½Amaiaï¿½. This is categorized as the economic housing line of Avida, ushering Ayala Landï¿½s entry into a wider marketï¿½the very people who need us more. Amaia will offer house and lot packages with prices ranging from P700,000 to P1.3 million, to provide them with a high-quality product for their hard-earned money.ï¿½ Amaia presents its maiden offerings in Laguna early next year.

ï¿½As we continue to finetune our products, our core competency on masterplanning is our distinct advantage and we want more and more people to benefit from this. This is part of our key thrust for the years to come, corporate social responsibility. This will be more integrated into Ayala Landï¿½s business models, not as dole-outs but being more powerful as a driver for economic growth.ï¿½ declares Aquino.

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Posted on 09:27 PM, December 27, 2009 [ BusinessWorld Online ]

Measure simplifying titling of residential lands awaiting Arroyoï¿½s OK for enactment

CONGRESS HAS ratified a measure providing a less-tedious and cheaper option to titling residential lands, and is awaiting the Presidentï¿½s signature for enactment into law.

The reconciled version of House Bill 5618 and Senate Bill 3429 or the proposed "Act Authorizing the Issuance of Free Patents to Residential Lands" ratified by the Senate and House of Representatives before Congress went on Christmas break last Dec. 19, allows the Land Management Bureau (LMB) under the Department of Environment and Natural Resources to issue free patents to residential lands, expanding its authority from agricultural lands.

The patent is then submitted to the Registry of Deeds for the issuance of a title.

The proposed law allows applications for titling if the tenant has occupied the property for 10 years from the current 30 years under the Public Land Act.

The titleï¿½s coverage should not exceed 200 square meters (m2) in highly urbanized cities; 500 m2 in other cities; 750 m2 in first and second class municipalities; and 1,000 m2 in all other municipalities.

The LMB currently issues patents for alienable and disposable lands only for agricultural purposes. It has estimated that the law would cover 7.8 million hectares of residential lands nationwide, mostly in Cebu, Davao and Baguio cities.

Residential patents could either be coursed through the Bureau of Internal Revenue (BIR) or through the courts with the accompanying fees. Under the proposed law, residential patents can be issued for free with certain documentary requirements.

Explaining the BIR process, Jaime V. Santiago, assistant commissioner and officer-in-charge of the taxpayer assistance service, said the BIR issues a certificate that would authorize the titling provided the following are submitted: a deed of sale or a will and testament to validate rights to the land, tax declarations, and pay a capital gains tax or 6% of the fair market value of the property and a documentary stamp tax of 1.5% of the fair market value.

Allan V. Barcena, LMB assistant director and head of policy development, said in an interview that the new law would only require the submission of tax declarations and affidavits from barangay officials and two witnesses other than their relatives which state that the applicant has stayed in the area for 10 years.

In cases of two or more claimants, Mr. Barcena said that the LMB central office would resolve the dispute but its decision is appealable in court.

He said they expected to have finished drafting the billï¿½s implementing rules and regulations by March.

"We are targeting that by January, the Office of the President has already signed this and then we can start implementing the guidelines. We expect to finish within three months," he said in a telephone interview.

"We expect that there would be a surge of application for patent [of residential land] because this soon to be made law is providing an easier way to get land titles. Right now itï¿½s not attractive to go through this process because applicants would either pay to the BIR or go to the courts. With this [bill], many would be encouraged to get land titles."

Mr. Barcena said it may take the same period to issue a residential patent compared to the agriculture patent -- six months, but noted they may hire and train new personnel since it would be the first time that the LMB would handle residential patents.

Meanwhile, Suzanne L. Felix, executive director of the Chamber of Thrift Banks, said the new law would encourage economic activity.

"Land titles can be used as collateral to borrow from banks so if the land titling process is hastened, banks would also benefit because there would be added market activity with the increase in land title holders," she said in a separate telephone interview.

Claro G. Cordero, Jr., head of research and consultancy at Jones Lang LaSalle Leechiu said conflicts may arise from illegal settlers.

"On the negative side, there would arise a problem of determining which lands are eligible to this [measure]. There are lots of government lands that have yet to be accounted for like residential areas which are on major highway roads that are sometimes illegally occupied," he said in another telephone interview.

The measure amends Commonwealth Act 141 or the Public Land Act. House committee on special land use and Zamboanga del Sur Rep. Antonio H. Cerilles (2nd district) said that the bill will be enrolled in Malacaï¿½ang before the month ends. -- JFSV

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SM signs P2.7B deal with Cebu City

CEBU CITY ï¿½ Cebu City Hall earned its first billion from the South Road Properties (SRP) Thursday after it closed the sale of a 30-hectare lot to SM Prime Holdings Inc. worth P2.7 billion, three years after the negotiations started.

By 2012, the SRP will be home to the biggest shopping mall in the Visayas and Mindanao with a gross floor area of 25 hectares, SM Prime Holdings President Hans T. Sy said Thursday.

SM Prime will invest at least P20 billion for a mixed-use development project facing the sea, which will include a convention center, hotels, residential condominiums, a school and a hospital.

After they signed the deed of conditional sale Thursday afternoon, Sy turned over to Mayor Tomas Osmeï¿½a a P406-million check to complete its down payment of P677.4 million. This represents 25 percent of the contract price of P2,709,712,000.

The P270.9-million bid bond paid earlier will form part of the down payment.

This is Cebu City Hallï¿½s second sale at the SRP, after its deal with Filinvest Land Inc. (FLI).

SM Prime will make four quarterly payments this year that will amount to P433 million so that by the end of 2010, SM Prime will have paid the City a total of P1.11 billion.

ï¿½This is the start for us. We will roll up our sleeves and we will definitely deliver a project that all Cebuanos will be proud of. This is really a project that we envisioned that will attract not only Cebuanos but also those from Visayas and Mindanao and even from Luzon,ï¿½ Sy said.

With the P677-million down payment, the City has so far earned P1.04 billion from the SRP, which includes Filinvestï¿½s P348-million down payment last year and Bigfoot Propertiesï¿½ lease payment of P15.2 million for the past two years.

Osmeï¿½a said the Cityï¿½s income from SM Prime and the Cityï¿½s sale and joint venture contracts with FLI will be enough to cover the loan payments for the SRP until 2025, so the City does not need to sell any more properties after the SM deal.

ï¿½It is anticipated that the City will not have to sell additional property to meet our debt service because with the installments coming in from SM and Filinvest and the other revenues we will be generating from the joint venture, I think it will be more or less enough to meet the debt service for the entire SRP,ï¿½ he said in a speech after the turnover of the check.

For this year alone, the City stands to earn P1.11 billion from SM Prime, P298 million from FLI and P7.7 million from Bigfoot, which will be more than enough to cover its loan obligation of P693.3 million to Land Bank of the Philippines for 2010.

As specified in the contract, SM Prime will pay the balance of P2,032,284,000 over a period of six years in quarterly installments, with a five percent annual interest.

Vice Mayor Michael Rama, city councilors and department heads witnessed the signing of the deed of conditional sale at SM City Cebu conference hall yesterday afternoon.

During the event, Sy presented Thursday their plans for the property and said they will break ground later this year, with construction work continuing in the next eight years.

The first structure to rise will be the shopping mall with a gross floor area of 250,000 square meters, which he said would be similar to the Mall of Asia in Pasay City.

The construction of a hotel with a minimum floor area of 60,000 square meters and the convention center with a minimum floor area of 20,000 square meters will follow.

After five years, Sy said they may consider starting the residential condominiums, the school and hospital.

SM Prime vice president Ronald Tumao said that what attracted them to the SRP is its location, being the only property in the city with ï¿½a real sea view.ï¿½

The signing of the contract came after the City Council called for a special session Thursday morning so they can approve the resolution authorizing the mayor to sign the documents.

After making minor amendments in the contract, the council approved the resolution, saying the sale of the property went through ï¿½a transparent competitive selection process through a Swiss challenge.ï¿½

Since the components of SM Primeï¿½s development were not included in the contract, the council agreed to make the documents of SMï¿½s unsolicited proposal an integral part of the sale contract.

Of the 240-hectare area of reclaimed land in the SRP, only around 150 hectares are left, which includes the roads and other service areas.

The City sold a 10.6-hectare lot to FLI last year and entered into a joint venture agreement to develop another 40 hectares.

A three-hectare area is being leased to Bigfoot for 20 years.

Properties were also donated to the University of the Philippines (5.17 hectares), the Department of Public Works and Highways (4.8 hectares) and the Department of Health (2 hectares). (Linette C. Ramos of Sun.Star Cebu)

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Pag-IBIG readies more loans for housing

Posted on 11:50 PM, February 24, 2010 [ BusinessWorld Online ]

THE HOME Development Mutual Fund, commonly called the Pag-IBIG Fund, has hiked its allocation for housing loans by 10.5% this year, as it expects more people to tap the fund for their housing needs.

Pag-IBIG Chief Executive Officer Jaime A. Fabiana told reporters on Tuesday that P50.5 billion is available for housing loans this year, up from the P45.7 billion extended to members in 2009.

ï¿½We expect an increase in housing loans because of the affordability of the loans and reduced interest rates,ï¿½ he said in a telephone interview yesterday.

Interest rates of Pag-IBIG housing loans were slashed in April last year with the aim of making the loan program more affordable to members.

Interest rates have been reduced from 10.5% to 8.5% per year for loans of over P750,000 up to P1 million, and to 9.5% per year for loans of over P1 million up to P1.25 million.

ï¿½Despite the economic slowdown last year, housing loans increased,ï¿½ Mr. Fabiana said.

Pag-IBIG housing loans grew by 34% last year from P34 billion in 2008.

ï¿½We think housing loans will continue to grow this year,ï¿½ Mr. Fabiana added.

The Pag-IBIG Fund was formed in 1978 through a presidential decree.

It is mandated to provide affordable housing finance to its members.

The Pag-IBIG Fund will be issuing P12 billion worth of five-year bonds next month, the proceeds of which would be used to refinance its P7 billion worth of maturing obligations as well as to support its lending operations. -- Louella D. Desiderio

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Innoland kicks off flagship project at Asiatown IT Park

By Ehda M. Dagooc (The Freeman) Updated April 24, 2010 12:00 AM/ http://www.philstar .com/Article. aspx?articleId= 569262&publicationSubCateg oryId=108

CEBU, Philippines - Newly established real estate company Innoland Development Corporation officially kicked off its P1 billion-flagship project development at Asiatown IT Park in a groundbreaking ceremony that marks the start of its first green hybrid building in Cebu.

Dubbed as “The Calyx Center”, the 26-story building will offer over 200 residential and commercial condominium units intended for the growing market of mobile professionals and technology workers in Cebu.

Innoland chief operating officer Charles Ong said The Calyx Center is the first of three developments that are being lined up by the company for the next few years.

Ong said the company will focus more on residential projects to take advantage of Cebu’s economic vitality that has attracted local and international residential property buyers.

The organically designed, green building located on a 2,953 square-meters premium lot beside Asiatown’s “The Walk,” will be a community within a bigger community with retail, office and residential components in one building, Ong said.

Ong said the establishment of the green building is seen to give boost to Cebu’s strong commitment to the environment.

The residential tower’s units will be on the 11th floor, a story above the transition level at the 10th floor will have two gardens. The bigger one is designed as an active zone with a lap and wading pool, a gym, shower rooms, a Laundromat, two function room for parties and business meetings exclusively for residents.

The smaller garden facing northeast will accommodate yoga, meditation, reading, and quiet conversations in an outdoor setting. Adjoining is a Lounge with a wifi center and workstation as well as a seating area for relaxation, receiving visitors, hob nodding with neighbors.

The first nine floors will be designed as a podium accommodating office spaces with footprints of over 2,000 square-meters to meet BPO (Business Process Outsourcing) requirements.

Innoland is the sister company of the entity that recently developed three buildings, two of which are BPO buildings, the Sykes building and 16-story TG Universal (TGU) Building at the Asiatown IT Park.

The group, which is led by its chief executive officer (CEO) Joy Anthony Ong, expressed its keen interest in venturing into the real estate development in Cebu, and soon will eventually venture into projects in other regions, after establishing its name here.

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Posted on 11:57 PM, April 20, 2010 (BusinessWorld Online)

Draft REIT rules issued by regulator

DRAFT RULES to implement the Real Estate Investment Trust (REIT) law were issued by the Securities and Exchange Commission (SEC) on Monday amid plans by top property developers to raise cash through the investment vehicle.

"The implementing rules of Republic Act 9856 of 2009 shall make way for the full implementation of the REIT Act, which seeks to promote the development of the capital market and democratize wealth by broadening the participation of Filipinos in the ownership of real estate in the Philippines," the SEC said in a statement yesterday.

The regulator said it was open to comments on the draft rules until April 26.

The REIT bill lapsed into law last December, amid objections by the Finance department that it would lead to billions in foregone tax revenue.

SM Prime Holdings, Inc., the country’s largest mall operator, in February said it was looking to raise $300 million through a REIT. Last week, property giant Ayala Land, Inc. also said it wanted to raise $300 million through a REIT.

A REIT, as defined in the rules, is a stock corporation "owning income-generating real estate assets". It must be listed on the stock exchange and have at least 1,000 shareholders, each with at least 50 shares of any class and who, in the aggregate, must own a third of the REIT’s outstanding shares.

A REIT should have a minimum capitalization of P300 million. It must dispense 90% of its distributable income -- defined as net income adjusted for unrealized gains or losses -- as dividends each year.

The draft rules also list the kind of investments a REIT can make: "A REIT may invest in real estate located in the Philippines, whether freehold or leasehold. At least seventy-five (75%) of the deposited property of the REIT shall be invested in, or consist of, income-generating real estate."

"Deposited property" refers to the total value of a REIT’s assets and investible funds.

Other allowed investments include:

* real estate-related assets;

* debt papers issued by the government, whether denominated in peso or foreign currencies;

* debt papers issued by other governments or by multilateral organizations such as the Asian Development Bank;

* corporate bonds;

* stocks of non-property firms listed on the local stock exchange or foreign exchanges; and

* cash and cash equivalents.

A REIT must appoint a fund manager, who must be independent of the REIT, whose duties principally entail execution of the REIT’s investment strategy.

This strategy, according to the draft rules, must be good for three years -- but has to be submitted by the REIT to the fund manager annually -- and must cover "intended purchases and divestments of real and other properties."

The draft rules also lays out the REITs’ tax treatment: "A REIT shall be subject to income tax ... on its taxable net income ... provided that in no case shall a REIT be subject to a minimum corporate income tax."

"Taxable net income" is defined as gross income minus deductions allowed by the Tax Code and the dividends distributed.

The sale or transfer of real properties to the REIT shall be levied only half the applicable documentary stamp tax (DST) as well as registration and annotation fees.

Initial and secondary public offerings of securities will be exempted from the IPO tax while the sale or exchange of securities will be exempted from the DST.

Earnings from the sale of any real property, or rental earnings from the property, will be subject to value-added tax (VAT). A REIT’s sale or transfer of securities will not be subject to VAT since it is not considered a dealer.

The tax perks will be withdrawn in the event the REIT is delisted from the stock exchange.

"Any tax incentive that has been availed of by the REIT thereafter shall be refunded to the government within 90 days from the date of delisting," the rules state.

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Boracay under threat
Written by Lito U. Gagni / Market Files/ May 20, 2010/ http://www.business mirror.com. ph/index. php?option= com_content&view=article&id=25458:boracay- under-threat&catid=28:opinion&Itemid=64
A growing number of stakeholders in Boracay—considered one of the world’s best beaches because of its unique white sand that does not burn one’s feet even at midday—are worried about plans for an international airport in nearby Caticlan that could sound the death knell to what Boracay is famous for.
Members of the Boracay Foundation, which groups hotels, resorts and other tourism-related firms in the area, are at their wits’ end on how to block the construction of the international airport.
What strikes fear in their hearts are findings that building the international airport would mean leveling the so-called Caticlan Hill. This hill provides not only natural cover to the pristine beaches but induces patterns of wind and current directions that make up the Boracay beach sands. “Leveling of the hill will trigger local hydromet changes on the environment that would eventually lead to the longshore erosion of beaches along Boracay,” according to scientist Dr. Ricarte S. Javelosa.
We understand that opposition to the construction of the Caticlan international airport being planned is mounting by the day as the full impact of the study made by Dr. Javelosa triggers huge concerns: losing the famed beach sands, and the tourism revenues.
The Boracay stakeholders want to pursue the original proposal: the construction of an international airport in Kalibo, Aklan—not in Caticlan. To them, the bottom line should be that there must just be only one international airport in the province and that is the one being planned in Kalibo. By adhering to this plan, there would no longer be any need to level the Caticlan hill. The Boracay stakeholders have adopted the buzzword: Level the hill, Boracay beaches disappear.
Under the microclimate theory advanced by Dr. Javelosa of the Mines and Geosciences bureau, removing the hill that acts ad the climate barrier that drives the replenishment cycle of the unique beach will result in the beaches eventually disappearing as a result of the disturbed microclimate, thereby causing major erosion from the sea and leading to the stoppage of the replenishing of fine and light white sand by the gentle breezes.
Javelosa explains that unlike other beaches which have sand made out of silica, Boracay’s powdery sand comes from finely polished crushed coral eroded from the bedrocks of Caticlan and Boracay. His study revealed that the main drivers for replenishing Boracay’s sandy beaches are the wind and the waves tempered by the hill at the end of Caticlan airport’s runway. The hill, according to him, acts as a barrier against the harsh winds of the habagat and amihan converting these into gentle breezes that swirl around the areas of Caticlan and Boracay while carrying light sand particles that replenish the beaches of its unique white sand.
Aside from this, Javelosa posits that leveling the hill will unleash the full force of the monsoon winds and wreak havoc on Boracay’s so called microclimate. The strong winds will carry even heavier topsoil that will discolor the beach, and will create higher waves that will crush the beach, dragging its unique sand back into the sea. These strong winds will also cause foreign object damage to planes in the airport.
What Dr. Javelosa details are frightening and this is what serves as a unifying force for the Boracay stakeholders opposing the planned international airport of a big conglomerate. Of what use, after all, is an international airport in Caticlan if this would lead to disastrous results. The Typhoon Ondoy and Pepeng catastrophes have strengthened the resolve of the Boracay stockholders to bring to the consciousness of the populace the need to oppose the planned international airport.
The disastrous effects of the climate change brought about by the failure of the government to rein in corporate greed have been highlighted by the economic upheavals that were brought by the lack of environmental concern. For starters, the country needs to refocus its efforts on the Boracay environmental challenges, especially those that pose hazards to Boracay’s come-on as a tourism destination. There is so much at stake here and it’s time the government spoke with one voice on environmental concerns.
Perhaps it is time for the incoming administration to zero in on the situation obtaining in Boracay. The famed beach is in danger of losing its tourism driver and all because of a plan to level the Caticlan hill. The Noynoy Aquino administration should level the plan to put up an international airport and instead have the planned airport put up in Kalibo. There is no other way out except to forego the leveling of that hill.

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AboitizLand to develop P1.1B housing project in Mactan
Written by Wilfredo Rodolfo III / Reporter/ May 20, 2010/ http://www.business mirror.com. ph/index. php?option= com_content&view=article&id=25445:aboitizlan d-to-develop- p11-b-housing- project-in- mactan&catid=45:regions&Itemid=71
ABOITIZLAND announced its P1.1-billion residential development in Mactan Island, optimistic of the ever-growing local real-estate market in Cebu, which has kept the industry growing despite the economic crisis.
The new project, Ajoya, sits in a 15-hectare riverside property in Cordova town near its boundary with Lapu-Lapu City in Mactan Island. Construction is set to begin in June 2011.
Pia Manticon, vice president for residential business unit for AboitizLand, said the real-estate industry continued to grow in 2009 despite the global economic crisis thanks to local enthusiasm on real-estate investment. She said a huge chunk of the uptake for their other project, the condominium complex Persimmon, were local buyers.
“Usually it is the foreigners who race to buy condominium units, but with Persimmon, they ran out of units as local buyers gobbled it all up,” Monticon said. “We are answering the strong demand from local buyers and we expect this market to grow so we need to keep up.”
The same local market is being targeted by Ajoya, coined after the word Joy, a typical characteristic of Cebuanos which helped make Mactan island an international tourism destination. The middle-class project aims at providing housing units for workers based in Mactan Island.
Monticon said Mactan is growing economically not only through the hotels, but its economic zones. She bases her assumption on another Aboitiz-owned property, Mactan Economic Zone 2, which has seen significant growth even through the crisis years.
She said AboitizLand is expected to further grow with the real-estate industry in Cebu. She said the company, part of the Aboitiz family conglomerate, is still on the look-out for more developments in Mactan island and even in mainland Cebu.
“The industry is growing and this can be supported by the arrival of Manila-based developers who have come to build communities in Cebu,” Monticon said.
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SM Prime allots P6B for 2 malls in Cebu

Written by Miguel R. Camus / Reporter /July 18, 2010/ http://www.business mirror.com. ph/index. php?option= com_content&view=article&id=27822:sm- prime-allots- p6b-for-2- malls-in- cebu&catid=24:companies&Itemid=59

SM Prime Holdings Inc., the country’s largest mall developer and operator, is investing P6 billion in Cebu over the next three years to launch two more malls in the fast-growing Visayan province.

In a chance interview last week, SM Prime president Hans Sy said the listed company is investing P5 billion to build a mall on a 28-hectare lot within the reclaimed 240-hectare South Road Properties (SRP) in Cebu City.

Sy said another P1 billion will be spent to develop an SM shopping center in a five-hectare property in Consolacion, a first-class municipality approximately 12 kilometers north of Cebu City.

Construction works in the two will start this year. The Consolacion mall, the smaller of the two, is expected to be completed by 2011. Sy said earlier that this mall will offer 50,000 square meters (sqm) of gross floor area.

The SRP mall, which will be the developer’s third shopping center in the island, will feature 250,000 sqm of gross floor area. SM Prime made its debut in the island province when its opened SM City Cebu in 1993.

Meanwhile, the P5-billion budget for the SRP mall represents a fourth of the P20 billion the SM Group plans to invest in the area, which is being positioned as a smaller version of its Mall of Asia Complex in Pasay City.

Apart from the shopping center, plans for the SRP complex include a 60,000-sqm convention center as well as hotels and condominium buildings to be constructed under SM Development Corp., the listed middle-income condominium developer of the SM Group.

SMDC president Rogelio Cabuñag said earlier his company has been “invited” to build projects near the SRP mall.

The hotel arm of the SM Group is also bullish on Cebu, with its plan to open within this year the 400-room Radisson Blu Hotel Cebu at the city’s North Reclamation Area near SM City Cebu.

SM Prime plans to be the first company in the Philippines to hold a Real Estate Investment Trust offer. The company is eyeing to raise up to $600 million by spinning off its “mature” mall assets into a separate entity to be listed and traded on the local stock exchange.

SM Prime earlier reported a 10-percent increase in its first-quarter net income to P1.9 billion while revenues grew 15 percent to P5.4 billion.

This year SM Prime plans to spend P12 billion to launch four new malls in the country and one in China. The company expects to have a total of 44 malls by the end of the year, of which 40 will be in the country and four in China.

SM Prime to build P5-billion retail complex in Cebu property

By Zinnia B. Dela Peña (The Philippine Star) Updated July 19, 2010 12:00 AM/ http://www.philstar .com/Article. aspx?articleId= 594512&publicationSubCateg oryId=66

MANILA, Philippines - SM Prime Holdings Inc., the country’s largest shopping mall operator, has earmarked P5 billion over the next three years to develop a retail complex within the reclaimed 240-hectare South Road Properties (SRP) in Cebu City.

SM Prime president Hans Sy said the company intends to focus on the development of the recently-acquired 28-hectare lot within the SRP. Plans are also underway to acquire an additional five hectares which will require an investment of P1 billion.

The P5-billion investment represents a quarter of the P20-billion spending program that SM Prime has allotted for a mixed-use development project at SRP over a 15-year period.

The shopping center is estimated to have a gross floor area of 250,000 square meters, which would become the biggest retail complex in Visayas and Mindanao. It is targeted for completion in 2012.

Apart from the mall, also being planned are a 60,000-sq.m. convention center as well as hotels and condominium buildings possibly to be constructed under SM Development Corp. (SMDC), the listed middle-income condominium developer of the SM Group.

  SM Prime acquired the property for P11,000 per square meter or nearly P3 billion.

SM Prime is spending P12.1 billion this year for the opening of five new malls nationwide and one in China. Slated for opening this year are Calamba, Laguna; Masinag, Antipolo; Tarlac, Novaliches and San Pablo, Laguna which will provide 279,228 square meters in total gross floor area.

The company is scheduled to open its fourth mall in China, SM Suzhou in the fourth quarter of the year. Located in the province of Jiangsu. SM Suzhou will have a GFA of approximately 70,000 sqm.

Two new malls programmed for opening in China in 2011 and 2012 are Chonggqing and Zibo which will add to SM Prime’s three existing malls - SM Xiamen, Jinjiang, and Chengdu.

SM Prime is targeting to put up two malls each year in China to bring the total number of malls in the mainland to 10 by 2014 as it seeks to take its malls overseas public.

By end this year, SM Prime expects to have a total of 41 malls with total gross floor area of 4.5 to 4.8 million square meters. Its malls currently have a foot traffic of over 2.5 million per day.

For next year, SM Prime will start building malls in General Santos City, Commonwealth Avenue in Quezon City, Lanang (second mall in Davao City) and its second mall in Cebu to be located in La Consolacion, South Reclamation project.

Developer pledges: No more floods

Saturday, July 31, 2010

LAND owner and developer Genvi Development Corp. yesterday assured the public there will be no more flooding this rainy season in the areas near Monterrazas de Cebu.

Twelve detention ponds are already operational in the 210-hectare urban residential resort community development in Guadalupe, Cebu City to deal with flooding, the company said.

According to Ting Agbisit, vice president for construction and technical planning, “there are already four detention ponds located in Northridge and eight in the Peaks. We are planning to add 12 ponds after a few years.”

Monterrazas started their development in April 2007 and it spans four kilometers and 210 hectares of land covering portions of Barangays Guadalupe, Labangon, Tisa, Sapangdaku and Buhisan.

In past years, landslides in nearby barangays were blamed on the upscale subdivision and caused the suspension of the development. But after they put up flood mitigation measures, the ban was lifted in 2009 by then mayor Tomas Osmeña.

Monterrazas at that time was still under Landco Pacific Corp., which severed their ties with lot owner Genvi last February. Genvi then took hold of Monterrazas.

Published in the Sun.Star Cebu newspaper on July 31, 2010.

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Aklan pushes P1.3B project for Boracay

By Nestor P. Burgos Jr.
Philippine Daily Inquirer
First Posted 22:07:00 07/26/2010/ http://newsinfo. inquirer. net/inquirerhead lines/regions/ view/20100726- 283318/Aklan- pushes-P13- B-project- for-Boracay

ILOILO CITY—The Aklan provincial government will continue to implement a P1.35-billion reclamation project in Caticlan, jump-off point to the country’s prime tourist destination, Boracay, and on the resort island itself despite opposition from a group of business owners.

Governor Carlito Marquez said the project covering 36.82 hectares in Barangay Caticlan in Malay town and 3.18 ha in Boracay, would help Boracay’s tourism industry and the economy of the province, contrary to the belief of the Boracay Foundation Inc. (BFI) and other critics.

“It is their right to oppose although their concerns are unfounded and we believe the project will benefit the greater majority,” Marquez told the Inquirer in a phone interview on Monday.

The BFI, composed of around 200 business owners in Boracay, has issued a resolution opposing the project, citing the lack of adequate consultation on affected areas and communities, environmental concerns and fears that the development may directly compete with businesses on the island.

Marquez said the group might have been misled by “wrong information.” He said: “We will not put up businesses that will compete with Boracay. In fact, it will complement and enhance the island.”

The governor gave assurance that the project would abide by environmental laws and guidelines. He pointed out that it had already been issued permits from various government agencies.

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Development of the real estate business
August 18, 2010/ http://www.sunstar.com.ph/cebu/osmena-development-real-estate-business
THE real estate business in the early 1950s was largely unorganized and the caveat emptor spirit of the time – “let the buyer beware” – prevailed. No government license laws existed to govern activities of real estate brokers and their salesmen.
Congress later enacted Republic Act 9646, “An Act Regulating the Practice of Real Estate in the Philippines, Creating for the Purpose a Professional Regulatory Board of Real Estate Service, appropriating funds therefore and for other purposes.” It took the government five decades to finally resolve the implementing rules and regulations urged then by the Philippine Association of Real Estate Board to establish trade ethics, standardization of real estate brokerage practices, commission charges, and servicing fees.
In the early 1960s, the Cebu Realtors’ Board was organized on the concept that the exchange of real estate practice and business trends information among the individual real estate boards instilled the need for unity in the real estate business. As a trade organization, the Philippine Association of Realtors Board (Pareb) was patterned after the US National Association of Real Estate Boards, when it drafted and adopted in 1913 a comprehensive code of ethics which contributed greatly to the transition of real estate from an unorganized business to its current status of a profession.
The adoption of the association’s emblem and the coining in 1916 of the trademark term “realtor,” which is reserved for sole use by the association’s active members, followed. The success of these individual real estate boards soon attracted the attention of organizing other real estate organization.
The creation of the Housing and Land Use Regulatory Board (HLURB) and the enactment of the condominium law during the Marcos rule eventually led toward the accomplishment of desirable social and economic ends to real estate development. Gone were the developers and fly-by-night operators whose road networks in the residential subdivisions are substandard, where road width is more of an alley and only open canal served as storm drainage.
One such environmentally-friendly Marcos decree was prohibiting the development of land with a slope over 60 percent and the area to be used for silviculture only. The purpose of the decree is to prevent soil erosion where the trees and shrubs hold the soil. Critics argue that HLURB should re-implement the 60 percent slope prohibition to prevent future flooding of the coastal areas.
The realtor’s preamble to the code of ethics set forth that, “under all is land, upon its wise utilization and widely allocated ownership depend the survival and growth of free institutions and of our civilization. The realtor is the instrumentality through which the land resources of the nation reach its widest distribution. He is a creator of homes, a builder of cities, a developer of industries and productive farms.”
For the record, let it be recognized that realtors have, for many decades, played an important role in the development of the industry in Cebu. It is because a realtor endeavors always to be informed regarding the law, proposed legislation, and other essential facts and public policies, further, the “realtor pledges himself to be fair to purchaser or tenant, as well as the owner whom he represents and whose interests he should protect and promote as he would his own; it is the realtor’s duty to advise the owner honestly and intelligently regarding its fair market value.”
It is the duty of every realtor to protect the public against fraud, misrepresentation, or unethical practices in connection with real estate transactions. Although most people think of real estate brokerage when the term real estate business is used, the greater part of real estate activity initiates in other areas of real estate specialization.
Many who are actively or inactively engaged in real estate are not in the brokerage branch of the business and are not negotiating real estate transactions for others and for a commission. They are investing in real estate or mortgage, buying and selling an interest in real estate on their own account, appraising real estate, constructing buildings, or working in a government agency that owns, manages, regulates, taxes, finances, or seeks to stimulate the economic use of real estate. The challenge addressed to the Cebu Realtors’ Board is to broaden and encourage real estate education especially to the unlicensed “colorum” realty salespersons.
Published in the Sun.Star Cebu newspaper on August 18, 2010.

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Filinvest Land to build P25B project in December
August 27, 2010/ http://www.sunstar.com.ph/cebu/developer-build-p25-b-project-december
FILINVEST Land Inc.(FLI) requested Cebu City Hall to finalize the power supply, telecommunications and transport utilities at the South Road Properties (SRP), as it prepares to start construction of its P25-billion project this December.
It also wants the City Council to confirm through a resolution the City Attorney's legal opinion clearing them of any obligation to pay transfer taxes amounting to P3 million.
Other than the city treasurer's move to collect transfer taxes from them, which he said was a minor “hitch,” Tristan las Marias, FLI's vice president for Visayas and Mindanao, said the City Government has been cooperative in their joint venture.
FLI will break ground later this year for the first 150 residential units in its joint venture with the City, and the development of a commercial and entertainment complex in the 10.6-hectare Pond F.
Las Marias said they can turn over at least P72 million to the City Government by June next year if all 150 units are sold immediately.
The amount represents the City's 10-percent share in the joint venture for the development of 60 residential buildings on the 40-hectare lot.
“We have received quite a significant amount of intentions and reservations from interested buyers... Our arrangements with the City is we would be able to remit almost quarterly what we collect. So if we can convert all these reservations to actual sales and collection by the time we get our license to sell.
Hopefully by second quarter next year, we would be able to remit the share of the City,” las Marias said.
Its license to sell and collect payment for the residential units is scheduled for release this October.
First phase
Some P4 billion will be poured in for the first phase of Citta di Mare, which includes four five-story buildings in Amalfi Coast, the car-free residential area; and Il Corso, the commercial and entertainment area on Pond F.
FLI is the first investor to buy a property at the SRP. In February last year, it signed the contract for the purchase of the 10.6-hectare lot for P1.5 billion and the joint venture to develop the 40-hectare area.
The City's contribution to the joint venture is the lot, while FLI will invest in the construction of 60 residential buildings with commercial and retail areas. Some 12,000 to 15,000 condominium units will be constructed.
For the first four buildings in Amalfi Oasis, 150 units will be constructed this December and these are expected to be completed in 12 months.
Most of the units have a floor area of 60 square meters at P75,000 to P80,000 per square meter. At P4.8 million per unit, FLI can sell the first 150 units for P720 million.
From that, Las Marias said the City could earn at least P72 million for its share from the joint venture.
In a press briefing yesterday, Las Marias presented their plans for the 50.6-hectare Citta di Mare, which is Italian for “City by the Sea.”
Once completed in 20 to 25 years, Citta di Mare will resemble the seaside communities in Italy.
Features
It will be an environment and child-friendly residential area, he said, since 65-percent of the 40-hectare development will be parks and open spaces, and it will be a completely car-free zone.
Road networks and parking spaces will be underground, and motorized vehicles will not be allowed in the residential area, las Marias said.
The 10-hectare Il Corso will also feature an amphitheater, an amusement park, a beach sandbox, a hotel, retail and commercial centers and a water sports activity area.
Its centerpiece would be a Spanish-era galleon that will feature a museum and restaurants.
In a press briefing yesterday, las Marias said the City has been a “very cooperative” joint venture partner in terms of providing the necessary utilities at the SRP.
“The City has been cooperative in terms of things we need from them. They have discussed their plans on water and power facilities, so I guess it's just a matter of implementing these things,” he said.
Water supply is already available, but the City has yet to ink a deal with the power supplier and set up telecommunications and transport utilities, particularly the Bus Rapid Transit (BRT) system.
He also said it would help them market the project better if the City can fast track the implementation of the BRT as the means of transport in SRP. The BRT will be set up in 2013 yet.
“I think the capacity of the City to contract a party or generate its own power to support developments in the SRP, that's going to be very critical. They're doing studies and they're talking to business groups on how they can provide this basic utility. I hope they can have a firmer plan in the soonest possible time,” he told reporters.
In a separate interview, Joel Mari Yu of the Cebu Investment and Promotions Center, the marketing and management arm of the SRP, said the water and power supply is not an issue.
The Metropolitan Cebu Water District was already contracted for the water supply.
Although the City still has to enter into an agreement with the Visayan Electric Co. for special arrangements on power supply at the SRP, Yu said it is providing electricity to establishments at the SRP at present.

Published in the Sun.Star Cebu newspaper on August 27, 2010.

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Cebu City awaits bus rapid system
By Cris Evert Lato
Philippine Daily Inquirer
First Posted 01:12:00 09/18/2010/ http://newsinfo.inquirer.net/inquirerheadlines/regions/view/20100918-292922/Cebu-City-awaits-bus-rapid-system

IF THINGS flow smoothly as planned by the Cebu City government, buses will replace jeepneys in the city’s major roads by 2013.
A total of 190 buses will move more than 300,000 passengers daily once the bus rapid transport (BRT) system is fully functional, according to Nigel Villarete, city planning and development officer. Around 400 bus drivers will be employed, he said.
The BRT system is expected to address traffic problems as the city grows to become the premier choice for investments in business process outsourcing and tourism.
It “will create a full mass transport system that is efficient, affordable, comfortable, safe and fast,” said Villarete, who is also BRT project development officer.
“It will integrate the economy by an urban mass transport system which also integrate social needs and addresses environmental concerns especially climate change,” he added.
At first, the buses will run from Barangay Bulacao in the south to Barangay Talamban in the north, passing through the Cebu Business Park, where Ayala Center Cebu is located.
A pre-feasibility study conducted by a World Bank consultant, Integrated Transport Planning of England, showed the viability of the BRT system for Cebu.
Villarete said the government would put up the BRT structure, but the private sector would manage the bus service operations.
The mass transport system is part of a 50-kilometer BRT in Metro Manila and Cebu, with a proposed budget of $350 million. Villarete said the funding had been assured even before the pre-feasibility study was conducted.
Part of the amount will come from the Clean Technology Fund (CTF), which is administered by a trust-fund steering committee and jointly handled by the World Bank, Asian Development Bank and other multilateral development banks.
Villarete said $250 million of the total project cost would come from a World Bank loan, $50 million from the CTF, and another $50 million as counterpart funding from the government.
Former Mayor Tomas Osmeña (now Cebu congressman) came up with the BRT concept in the 1990s, patterned after a model of a convenient public transportation system in Curitiba in Brazil. Formal talks, however, with World Bank and other agencies started only in 2008.
In mid-2009, Osmeña visited Bogota in Columbia, upon the invitation of its former Mayor Enrique Peñalosa. Bogota’s BRT took off from the Curitiba system, which was implemented in the early ’80s.
Approval
Business groups in Cebu welcomed the BRT project, saying that they have long waited for it.
“More importantly, the city needs world-class traffic and urban planning system, and the political will and vision to implement it. This has been sorely lacking. Without these, our traffic situation will continue to degrade and urban sprawl will worsen,” said Gordon Alan “Dondi” Joseph, president of Cebu Business Club.
Sam Chioson, president of the Cebu Chamber of Commerce and Industry, said buses “would greatly help our traffic situation since these will replace jeepneys.”
A group of small and medium entrepreneurs consider the BRT a way of checking migration from the rural to urban areas.
“Neighboring towns and cities can get easily to Cebu because it is easy and convenient to go home. They do not have to transfer residence,” said Rey Calooy, president of Filipino Cebuano Business Club Inc.
Calooy said the BRT would also spur businesses in the small towns since companies will have a faster road network in delivering products and services.
Partnership
The BRT will cost some $7 million per kilometre – cheaper than the Light Rail Transit (LRT) and the Metro Rail Transit (MRT) in Metro Manila, which cost between $32 million and $60 million per kilometer, Villarete said.
He said the city government was hopeful that the Aquino administration would include the Cebu BRT project in its list of priority projects.
“The Cebu BRT is one of the better examples of private-public partnership implementation and also includes ODA [official development assistance] funding, which will ensure the barest Philippine government exposure,” said Villarete.
While the BRT infrastructure will be built by the government through the CTF, he said, service operations will be fully run by private sector. He said the private sector would invest in vehicles, as well as software and hardware systems for fare collection and management, and trip scheduling.
“It will maximize the efficiency of private sector in managing facilities. We are all going full force on all of this,” said Villarete.
He said the Department of Finance, Department of Transportation and Communications, and the National Economic and Development Authority had already sent letters of endorsement to the World Bank to proceed on the formal feasibility study, including a detailed planning and design of the BRT infrastructure, institutional arrangement and proposed loan arrangement.
Mandaue, Lapu-Lapu, Talisay and other neighboring cities may also be covered by the BRT, Villarete said. So far, only Mandaue has submitted a resolution asking the World Bank to make it part of the system.
Villarete pointed at future extensions between South Road Properties and SM, which can be connected through Ayala. Mandaue, on the other hand, can be reached through Barangay Talamban.
Issues
Leaders of the transport sector said they were not against the implementation of the BRT, provided that arrangements would be accorded the displaced drivers.
Ryan Benjamin Yu, chair of the Cebu Integrated Transport Services Cooperative (Citrasco), said his group had asked the city government to assist the drivers in getting new routes or alternative livelihood.
“The BRT cannot serve all the routes, especially the secondary routes. We have two requests. One, for those drivers who decide to operate their transport business, request the city government to facilitate their transfer to other routes,” Yu said.
The transfer, he said, should be free-of-charge to the drivers through a special agreement between the city government and the Land Transportation Franchising and Regulatory Board.
Drivers who will choose to stop plying the routes will ask the city government for livelihood and entrepreneurial training and seminar. They should also be allowed to borrow capital for their new businesses.
“I already raised these concerns in an informal talk with [former mayor] Tomas Osmeña because it is not possible that you implement a new system and just don’t care about those who will be affected like they never existed,” Yu said.
Nilo Bastion, 45, a jeepney driver who plies the Talamban route, said the implementation of the BRT system would mean the loss of his primary means of livelihood.
“What will we do without passengers? We will always eat salt with rice,” said Bastion, the family breadwinner.
He said the city government must work on a scheme that will benefit all parties.
For Maribel Melgar, an office worker, the BRT will be a better alternative to jeepneys since it would address two issues—traffic congestion and safety.
Melgar, a mother of three, travels everyday from her house in Mandaue, passing through Talamban where traffic is unbearable.
“Most of the jeepney drivers do not unload and load in the designated areas even if the signs are clear that you should load and unload in the proper places. Some park their jeepneys on the road itself, causing traffic,” she said.
However, she said, the BRT operators should make sure that everyone could afford the fare rates. Otherwise, she said, it would defeat the purpose of building the system.
Under study
Villarete said the displacement of jeepney drivers had been taken into consideration. “There will be changes and negative impacts, but the feasibility study will incorporate all possible means of minimizing negative impacts and alleviating them so that no sector will be left behind,” he said.
As for fare rates, Villarete said the pre-feasibility study indicated that the system had a benefit cost ratio of 2.0+. This means that if the BRT will have the same rate as jeepneys, it can be operated “without loss and will possible work with a profit,” he said.
In Cebu, jeepney passengers pay P6.50 for the first five kilometers. “How much more if we have a little higher rate?” Villarete said.
The study also showed that clients were actually willing to pay more, considering that the buses would be much faster and more comfortable than the jeepneys, he added.
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Aquino tells Cebuanos: Investment confidence in RP ‘very, very good’

Written by Wilfredo Rodolfo III / Reporter

Thursday, 16 September 2010 15:02

President Aquino visited Cebu on Wednesday, the first time since he took office, and with his economic team presented their plans to the business sector.

Business-sector leaders presented their wish list during the interchange.

Mr. Aquino lauded the strong public-private partnership in Central Visayas while reporting that investment confidence in the country was “very, very good.”

He promised the rehabilitation of the Mactan Cebu International Airport as well as the establishment of a cold-chain logistics system spanning Mindanao, the Visayas and Luzon.

“You are well poised to take advantage of the economic climate in the country,” the President said.

“These linkages [public and private] can help us meet our mutual goals that will benefit the entire nation.”

The business leaders presented him with seven requests, which they said would support the economic growth in the region:

1. Infrastructure projects worth P4.4 billion.

2. Priority for tourism and the value-chain network

3. Reduction of fuel and power costs

4. Expansion and modernization of the Mactan-Cebu airport

5. Mass transit system in Metro Cebu

6. Construction of the Panglao International Airport

7. Construction of a bridge connecting Cebu and Bohol

In a press conference that followed, the President, gave promising remarks on the airport projects. But he said he would still have to look at the infrastructure wish list.

“The Bohol-Cebu Bridge could be too ambitious,” he said. “The money may be there but we want to know if these are the projects that we really want.”

The President’s economic team met with some 200 businessmen before the Chief Executive’s arrival, and presented their plans for the next six years.

National Economic Development Authority Director-General Cayetano Paderanga said the administration was hoping a 5 percent to 6-percent GDP growth in 2010 and a 7 percent to 8-percent growth from 2011 to 2016.

He also said the administration planned to roll out close to P740 billion worth of infrastructure projects in the medium term.

The administration wants to add tourism to the three existing pillars of the Philippine economy at present—the OFW remittances, the semiconductor export industry and the BPO, Paderanga said.

Finance Secretary Cesar Purisima said the administration is also determined to cut red tape and reduce, if not stamp out, corruption, while improving the country’s tax-collection efficiency to the regional standard of 17 percent from 13 percent.

Trade Secretary Gregory Domingo said he planned to roll out the online-based Philippine Business Registry system in the next three months to expedite and streamline business registration in the country.

Energy Secretary Jose Rene Almendras said his department would focus on building additional supply while working on energy efficiency in the country.

The President later met close to 5,000 campaign volunteers as well and recipients of government poverty alleviation programs.

(source from: business mirror online)

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Norkis plans IT park project in Mandaue
By Ehda M. Dagooc (The Freeman) Updated September 25, 2010 12:00/ http://www.philstar.com/Article.aspx?articleId=615129&publicationSubCategoryId=108
CEBU, Philippines – The Norkis Group of Companies is going to convert its three-hectare property in Mandaue City into an Information Technology (IT) Park, in the next two to three years.

Norkis Group chairman Dr. Norberto B. Quisumbing Jr., announced that the company's master plan to venture into the promising BPO-real estate development is now on the drawing board.

According to Quisumbing, the company is open for joint-venture deals with interested BPO (Business Process Outsourcing) companies for the establishment of buildings or it may be done through lease-contract agreement with Norkis.

As the company's headquarters and plant will be moved to its 100-hectare property in Compostela, north of Cebu, Quisumbing said Norkis is also taking advantage of the promising BPO market, which is also considered as the largest employer in the country today.

To be called Norkis IT Park, the initial plan is to build eight high-rise buildings suited for the BPO clients, as well as the establishment of an Academy for ESL (English as Second Language) in partnership with a big university in Cebu.

Once completed, the father of the Norkis Group said that the Park can easily employ more or less 20, 000 to 30,000 people.

BPO, he said is a good employment generator for the country in this generation, and in line with this thrust to provide more employment to Cebuanos, keeping them from working abroad, Quisumbing said establishment of an IT Park in Mandaue is one of the solutions to unemployment.

He admitted that the Norkis group like other companies is losing good people to high paying BPO companies. Although, the company will continue to expand its core business in manufacturing, marketing, financing, agri-business, export, and real estate, entering into BPO market is not only good for the Group's growth, but also to the Cebu constituents.

"The reality is-BPO is here to stay," Quisumbing said in an interview Thursday.

Aside from the eight high-rise buildings that will be designed for the BPO company locators, and the ESL academy, the company also plans to put up residential condominiums for the employees working within the park.

Adjacent to Norkis' three-hectare property in Mandaue City, is the ongoing construction of a leisure and shopping destination being developed by exporter Justin Uy. The Norkis IT Park will complement with Uy's development, he said specifically that part of Uy's plan is also to establish a five-star hotel within the area.

Quisumbing lauded the efforts of the present Mandaue City administration led by Mayor Jonas Cortes in providing an investor-friendly environment, which further encouraged more capitalists to invest in the City.

Although, he said good urban-planning for zoning in Mandaue should be implemented, in order to attract local and foreign investors.

Norkis, one of the country's transportation and retail financing giants operate more than 300 retail financing branches around the Philippines and is employing over 6,000 people, of which mostly are Cebuanos. (FREEMAN)

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Citta Di Mare Fli kicks off construction of first residential cluster
By Ehda M. Dagooc (The Freeman) Updated November 16, 2010 12:00 AM/ http://www.philstar.com/Article.aspx?articleId=630659&publicationSubCategoryId=108
CEBU, Philippines - Filinvest Land Inc., (FLI) officially started the construction of its first residential component called Amalfi Oasis at its 50.2-hectare integrated development Citta di Mare at the South Road Properties (SRP).

FLI vice president for the Visayas and Mindanao Tristan Las Marias announced that a total of 120 condominium units will be turned over to its owners by December 2011. The company already started accepting letters of interest from buyers, pending the project’s permit to sell from the Housing and Land Use Regulatory Board (HLURB).

The six-hectare Amalfi Oasis will have a total of nine medium rise buildings (five-story each). The company kicked off with the construction of the first building with a formal ceremonial ground breaking held over the weekend.

This early, the company according to Las Marias is already preparing for the construction of the second building, while it is already entertaining reservations for the next condominium buildings.

Of the total 40 hectare residential component, FLI expects to offer a total of 12,000 chic and seaside condominium units in Cebu to transform the way of lifestyle in Cebu by promoting resort living.

The Amalfi Oasis development is an Italian-inspired community, patterned after a development of the same name in Southern Italy.

Initially, FLI will incur about P3 billion in the next three years for the construction of both the residential and commercial components of the Citta de Mare.

Citta di Mare or “City by the Sea’ is a P25-billion project of FLI, which is a joint project with the Cebu City government. It is a master-planned community that intensifies the attraction-wealth of Cebu—the resort living.

Prices of the Amalfi Oasis condo units range from P5 million to as high as P10 million, Las Marias said that surprisingly, buyers who already signified interest to buy the units are 80 percent composed of Cebuano buyers, while 10 percent are foreigners, the rest are buyers from other provinces across the country.

Creating a City within Cebu City at the SRP is what will be expected in the next 15 to 20 years.

According to Las Marias, the development may be completed ahead of the target number of years, depending on the momentum of the take up of units.

Las Marias added that starting with the Amalfi Oasis, FLI will start pushing Cebu as the preferred second-home destination in the world, highlighting the resort living advantage with world-class facilities.

On the other hand, Las Marias expressed confidence that the City Government is already working on the relocation of the dumpsite located in Inayawan before the year ends.

He said that since the project is a joint venture with the City, he is optimistic that the government will take the appropriate action to further increase the marketability of the entire development. (THE FREEMAN)

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Group of entrepreneurs venture into real estate
By Ehda M. Dagooc (The Freeman) Updated December 11, 2010 12:00 AM/ http://www.philstar.com/Article.aspx?articleId=638045&publicationSubCategoryId=108
CEBU,Philippines- A group of Cebuano entrepreneurs, most of whom are engaged in the construction business, have pooled their resources together to build a 17-story mixed use medium-rise building at the Cebu Business Park, to be called “Apple One Tower.”

This is the first project of the Apple One Properties Inc., to jumpstart the company’s plan to take advantage of the country’s fertile real estate industry may it be in residential or commercial development.

The Apple One Tower located adjacent to the Cebu City Marriott Hotel, will provide a total of 46 units of commercial spaces that are geared towards attracting the Business Process Outsourcing (BPO) companies, while providing a limited 18 units of residential condominium facilities.

In an interview with Apple One Properties vice president for operations Yvet V. Andalis, she said that the building will be completed in the next 18 months, while the company is currently negotiating for companies to transfer immediately after the completion.

Its condominium units, which are also positioned for high-end clients, are also getting strong interest specifically from expatriates and BPO executives that are based in Cebu.

Despite the entry of seasoned and well established names in real estate developments announcing their multi-million-peso condominium projects within the 52-hectare CBP, Andalis said Apple One Tower will have its advantage because it will focus on office and commercial leasing business.

“We only have limited residential units,” Andalis said adding that the company is not competing with any developer within the PEZA-accredited business park. Instead the project is complementing to provide wide-choices for customers to get commercial space and residential units within the area.

“Everybody is expanding. We need to provide them with spaces,” she said.

The P500 million Apple One Tower is largely banking on the robust BPO sector in Cebu, following its proclamation being the 8th emerged destination as BPO destination in the world.

This early, Andalis said the company is already negotiating with several BPO companies, like animation studios, and other outsourcing firms.

In the ground floor of the building, the company will dedicate the commercial spaces to financial institutions like banks, and insurance companies.

Following the formal launching of the project held recently, the company has started its pre-selling activities for its residential condominium units, that are priced from P4 million to as high as P8 million, depending of the floor-area size and number of bedrooms.

According to Andalis, the company led by Cebu-based Ven Ray Construction, which also part-owner of several several real estate properties in Cebu including Diamond Suites, Apple Tree Suites, BoardWalk City Residences at the North Reclamation Area, among others, is also planning to invest on more projects soon, in Metro Manila and in Cebu.

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Banner year for Real Estate

Date Posted: 2010-12-21

(By Sunstar.com.ph)

Real estate players in Cebu described 2010 as a banner year for the industry, with numerous real estate projects being developed in the province.

Subdivision and Housing Developers Association Inc. (SHDA) governor for the Visayas Rey Ralota credited the upward trend of the industry to the strong surge in overseas remittances from Filipinos abroad, a reliable market for property developers.

He also cited the strong business process outsourcing (BPO) industry in Cebu, which led to an increased demand for housing facilities like condominiums and office buildings, as well as Cebu’s positioning as a premier business and tourism destination.

“Cebu has always been regarded as the second biggest market after Manila. This factor alone makes Cebu an attractive destination for business activities,” Ralota said.

Philippine Association of Realtors Board Inc.-Cebu Realtors Board Inc. (Pareb-Cereb) president Emily Cabillada said the industry’s resurgence was felt after the Asian financial crisis that began in 1998, a period that challenged the real estate industry.

Cabillada also pointed out public investments of the past administration for Cebu like road improvements, among others, which opened opportunities in the real estate sector.

Cabillada said there is an equal increase of both vertical and horizontal projects in Cebu this year.

Vertical developments such as office buildings and condominiums are in demand to serve the growing BPO market, while horizontal developments such as subdivisions strategically located in the city continue to grow.

The housing backlog was estimated by SHDA 7 at 50,000 units.

Cabillada also noted that infrastructure projects such as road improvements in South Road Properties and Tayud Coastal Road in the north have also paved the way for more projects. Developments now reach areas like Consolacion, Liloan, Minglanilla and Naga, among others.

Cebu-based developer Taft Property Venture Development Corp., in particular, sees a stronger market for residential developments in Cebu because of its robust economy.

Taft Property chief operations officer Manuel Colayco Jr. said that despite the tough competition in the market today, there remains a stronger market, especially in the lower-to-middle category, which the industry should maximize.

Colayco said the company is confident about expanding its projects, giving more housing options for the growing Cebu populace.

Business leaders of Cebu have also identified the real estate industry as one of the sunshine industries that fueled the economy of the island this year, aside from the BPO and tourism industries.

Mandaue Chamber of Commerce and Industry (MCCI) president Eric Mendoza said the construction industry alone has helped the local economy in creating jobs.

Cebu Chamber of Commerce and Industry (CCCI) president Samuel Chioson said the real estate industry has created a multiplier effect benefiting other sectors in the economy.

Cebu Business Club president Dondi Joseph said real estate developments in Cebu also signal the continued confidence among investors, a trend which he hopes will continue in 2011.

But for the industry to sustain its growth, the business chambers said a strong public-private partnership should be fostered to maintain the industry’s momentum.

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Alphaland to build resort near Boracay

December 6, 2010/ http://www.bworldonline.com/main/content.php?id=22430

ONGPIN-led property developer Alphaland Corp. has sealed a deal to develop its first leisure and tourism project in the country, the company said in a disclosure yesterday.

The proposed Alphaland Boracay Gateaway resort near popular tourist spot Boracay will be a masterplanned, mixed-use complex.

“[On Friday afternoon], Alphaland entered into a development agreement with Akean Resorts Corp. to develop around 500 hectares of land owned by Akean Resorts,” the company said.

The lot is located in the municipalities of Nabas and Malay in Aklan province near the Caticlan airport, which is the main gateway to the world-famous white sand beaches of Boracay Island.

“The project, a resort complex consisting of residential and commercial developments, will be anchored by a polo and country club,” Alphaland said.

“It is designed to be a fully integrated leisure township development with a wide range of components including hotels and other accommodations, as well as water sports and other recreational facilities, and large, top-of-the-line homesteads,” it added.

Akean Resorts is an affiliate of the Prudentialife Group of Companies, a pre-need, health care and financial service firm led by Ambassador Francisco A. Alba.

“The parties have agreed that Akean Resorts will contribute the property while Alphaland will provide the necessary funding, equipment, materials, supplies, development works expertise, management, labor supervision and related undertakings,” the company said.

The 1,006-hectare Boracay Island is a home to about 12,000 people in three barangays.

Alphaland wants to put up several membership clubs around the country in the next five years given an expected uptick in the leisure sector.

Other projects include the Alphaland Balesin Country Club in a 424-hectare island-resort in Lamon Bay, 33 kilometers off the eastern coast of Luzon, and Alphaland Shangri-La at the Fort that will have residential units and leisure facilities.

The property development firm led by former trade minister Roberto V. Ongpin joined the local stock exchange last year after taking over Macondray Plastics, Inc. under a backdoor listing scheme.

Alphaland is also into office, condominium, and commercial space development. In October last year, Alphaland opened its first project, the Alphaland Southgate Tower in Makati, which has a 40,000-square-meter office space and a commercial center.

Shares in the property developer -- which recorded a P34.38-million net loss in the nine months that ended in September from a profit of P30.08 million last year due to a 400% surge in operating expenses to P204 million -- were last traded on Friday at P62.75 apiece. -- Neil Jerome C. Morales

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Real estate boom to take peak in 2011
(The Freeman) Updated January 01, 2011 12:00 AM

CEBU, Philippines - As big and small developers started to pour in their investments in 2010 to dramatically change Cebu’s real estate landscape, the year 2011 ushers in a new dimension of the industry’s boom.

The renewed confidence of investors and market for the Philippine economy in general will benefit the entire real estate industry, especially in Cebu—the new second-home attraction for both local and foreign markets, said Philippine Allied Chamber of Real estate Brokers and Licensed Salesmen (PhilACRE) president Anthony Leuterio.

“The year 2011 will be the most exciting year real estate sector in recent years. A golden rabbit is a great sign for all of us. The influx of tourists and with the renewed confidence brought about by the new government will make the Philippines, especially Cebu more attractive for real estate buyers all over the world,” said Leuterio.

Aside from condominiums, which fuels the growth of the real estate sector in Cebu, Leuterio said increasing demand for middle-range and economic housing projects is projected to strengthen, and that OFWs are the main target market for this segment.

Although, there is also a good market outlook for high-end and sophisticated retirement residential projects, Leuterio said this particular segment only accounts for minimal percentage of the entire real estate growth for 2011.

Multi-billion pesos real estate projects will be started in Cebu this year, a combination of commercial and residential developments.

In 2010, Cebu gained the attention of the country’s top developers, where billions of pesos had been allocated to change the landscape of the Queen City of the South—making it a truly world-class urban center.

Established developers such as SM Prime, Filinvest, Ayala Land Inc., Aboitiz Land Inc., and among others are just few of the dozens of real estate capitalists that in the Philippines that officially announced their serious investments in Cebu in the real estate sector.

With limited availability of land in the island Province, developers have opted to build high-rise buildings for condominiums, commercial and BPO facilities, shopping malls, hotels, and re-creation centers.

The most awaited development which was announced in the middle of this year, is the conversion of the 30-hectare lot at the South Road Properties (SRP) for a mixed-used development of the SM Prime Holdings, which include the establishment of one of the world’s largest malls in Cebu.

Hans Sy, SM Prime Holdings president said that the company will spend at least P20 billion of the development of the SRP lot in the next few years, of which planning and construction activities started in the latter part of this year.

According to Sy, Cebu’s well-managed economy is one of the reasons why the company has put its money here.

“We are confident of how the whole Cebu is being managed. We are going to duplicate in Cebu what we’ve done in Manila,” he said.

Gotianun-led Filinvest Land Inc. (FLI) started its P25 billion project also at SRP in 2010, with the introduction of Citta di Mare or “City by the Sea,” a project, in partnership with the Cebu City government.

FLI’s Citta di Mare is a master-planned community that intensifies the attraction-wealth of Cebu—the resort living.

Aside from the 12 thousand to 15 thousand condominium units that will be constructed, the development will also construct integrated facilities, such as commercial, waterfront lifestyle strip, and a residential cluster, among others.

CIPC managing director Joel Mari S. Yu earlier announced that CIPC and the real estate and tourism sectors in Cebu will together formulate a roadmap in making Cebu as an International “Second Home Destination” not only in the world.

Selling condominiums to foreign national buyers, is the easiest way as it does not restrict them from owning one. Owning a land property on the other hand, requires foreigners to have a legal linkage with a Filipino partner, in most cases (for residential purposes)—a Filipina wife.

In June of this year, Ayala Corporation chairman and chief executive officer (CEO) Jaime Augusto Zobel de Ayala expressed his confidence of Cebu’s real estate sector, saying country’s giant conglomerate will advance its presence Cebu’s real estate landscape, disclosing interest to buy more lands in the province.

Zobel said that the company’s interest through its various subsidiaries in real estate development group led by ALI will be magnified here.

AboitizLand Inc. on the other hand, announced to launch at least two to three projects by 2011, mostly are into residential and commercial condominium facilities.

Newly established real estate company, Innoland Development Corporation recently announced its P1 billion investments for the “The Calyx Center”, a 26-story building will offer over 200 residential and commercial condominium units that will target the growing mobile professionals and technology workers in Cebu.

Robinsons Land Corporation also will complete its latest project ahead of schedule its first tower in the AmiSa Private Residences, the residential component of AmiSa, its master-planned five-star leisure resort community in Punta Engano, Mactan, Cebu.

The property development arm of the J. King and Son Inc., Fuente Triangle Realty Development is also currently building more condominium properties in Metro Cebu, including its condo-tel projects around the country.

Aside from these developers, there are also a growing number of new entrants in the real estate sector in Cebu, taking advantage of the booming real estate business here.

New entrant Cebu Green Peaks Development Inc., recently launched the all -residential garden high-rise condominium project located on Molave Street in Lahug, this City. The project will provide a total of 165 units of one-bedroom, two-bedroom, and garden villas and suites.

Other real estate developers are also scouting good locations for countryside residential developments, to re-enforce Cebu’s positioning as a retirement and second home destination in the world.

This active momentum of real estate investors to change the landscape of Cebu into a world-class metropolis, has given real estate sellers and brokers opportunity to expect 2011 as a “wealth” generator year, added Leuterio, who also owns the Leuterio Realty company in Cebu.

Economists said that the low interest rates have made it more attractive for people to buy real estate properties, while banks have also expanding their loan offerings especially to residential property buyers. (FREEMAN)

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For housing, relocation NHA offers partnership with LGUs
By Mitchelle L. Palaubsanon and Gregg M. Rubio/JMO (The Freeman) Updated February 17, 2011 12:00 AM

CEBU, Philippines - Local government units that wish to provide relocation sites for informal settlers can now partner with the National Housing Authority (NHA) through the latter’s Resettlement Assistance Program.

This was announced by Nancy Binay Angeles, daughter of Vice President Jejomar Binay during the “Strengthening Local Government Units in Housing Delivery and Local Development Planning” at the Radisson Blu Hotel yesterday. At least 90 mayors from Central Visayas attended the event.

Nancy read her father’s speech during the event.

Under the program, the local government would provide the land while NHA would provide funding for site development. This would be undertaken through a joint venture arrangement. LGUs that want to acquire land for their housing projects can also avail of the Localized Community Mortgage Program.

Under this program, the budget of the LGU may be supplemented by funds from the Social Housing Finance Corporation equivalent to 75 percent of the project cost.

“We will develop an investment-friendly business climate for the housing sector and encourage strong private sector support in the implementation of localized housing projects for the poor,” Binay said.

The vice president also challenged private housing developers to partner with the LGU’s in developing ide and underutilized government lands as the mode for complying with the 20 percent balance housing requirement.

“With such vision, with our partnership, I believe there can be no more effective weapons and equipment in waging the battle for housing, the battle for a better life for the poor,” the speech reads.

Binay, chairman of the Housing and Urban Development Coordinating Council, was not able to attend the event as he was called to Malacañang for some important matter.

But in his speech, Binay said the government will pursue the implementation of sustainable communities under a Public Private Partnership scheme, starting with the development of proclaimed sites for housing.

To make housing affordable to certain beneficiaries, Binay said he will initiate usufructuary arrangement, an alternative mode of land disposition for housing that would reduce cost by eliminating the price of land from the cost of development.

Binay likewise invited the mayors to join him in the campaign to provide shelter for those that do not own houses because “a roof over one’s head and home for one’s family is one’s own monument of self-respect and the start of one’s journey away from poverty.”

HUDCC’s Pabahay Caravan is a way of coming to the doorstep of every local government unit to offer the partnership of the national government in bringing the benefits of home ownership to the local constituents.

Both Cebu Governor Gwendolyn Garcia and Cebu City Mayor Michael Rama support the housing program.

Also yesterday, the Housing and Land Use Regulatory Board led other attached shelter agencies in launching the “Pabahay Caravan” in Cebu City.

Garcia said the partnership between the national and LGUs spare more benefits and improvements. The Local Government Code mandates that the delivery of housing services is primarily focused on the responsibilities of LGUs. —(FREEMAN)

Property demand seen to surge in Cebu

June 27, 2011/ http://www.bworldonline.com/content.php?section=Economy&title=Property-demand-seen-to-surge-in-Cebu&id=33806

CEBU CITY -- As Cebu tries to attract more investments to expand its economy, demand for real estate products here is expected to further escalate.

Real estate industry specialist Danilo A. Antonio, who teaches entrepreneurship and real estate development at the Asian Center for Entrepreneurship of the Ateneo Graduate School, said that unlike Metro Manila, which is running out of undeveloped land, Cebu still offers sizeable areas for property development within its key cities.

"We see an escalation in the demand for real estate projects in Cebu and we’d like to be here," Mr. Antonio, who also represented Filinvest Land, Inc., said during a forum on emerging industries as part of the Cebu Business Month celebration.

Real property trends in Metro Manila that are starting to manifest in Cebu include:

•mixed-use projects with residential, business and retail components;
•commercial play in vertical projects, where the ground floor is devoted to commercial and retail establishments;
•lifestyle-oriented centers, with their park-like ambience and eat-shop-play concept; and
•mall expansion

Although Cebu still lacks a faster transport network to boost accessibility of real estate developments, especially in the outskirts of the key cities, Mr. Antonio said Cebu’s advantage lies in the affordability of raw land for real estate projects.

"This is where we see plenty of opportunities," Mr. Antonio said.

"The cost of acquisition determines the type of product that you will create. Relative to Metro Manila, Cebu is still reasonable. Yet, we see that real estate products in Manila are something that we can sell here."

If a recommended game plan for the expansion of Cebu’s economy is realized, Mr. Antonio said demand for real estate projects would likely surge here.

Joel Mari S. Yu, managing director of the Cebu Investment Promotions Center, recommended that migration, especially of rich people and investors, to Cebu be encouraged to increase purchasing power of the domestic market and expand the economy.

"Everybody who’s coming in -- SM, Ayala, Filinvest -- is making a bet on our ability to increase purchasing power and expand domestic consumption," Mr. Yu said.

"The global economic strategy of choice is to expand domestic consumption. This is 180 degrees away from the outdated model of export expansion," he added.

He brushed aside concerns on the impact of a dense population in Cebu, saying the United Nations has set the ideal population for a metropolis at 2.5 million to 3.5 million. "Don’t get rattled that we’re hitting one million in [Cebu] city alone. We need to grow and hit a minimum of 2.5 million for Metro Cebu," he said.

Mr. Yu said Cebu’s main attraction is its livability and the best value proposition is to promote Cebu as a second home destination, not just to foreign investors but also to the local rich as well as retirees from Japan, South Korea, Hong Kong, Taiwan and China.

This strategy will require a wide range of living facilities on the market, he added.

Mr. Antonio downplayed concerns that the market would be saturated as more developers come in.

"I don’t think the bubble will burst because the market is still underserved," he said.

So far, major developers have invested in Cebu. Among them are Ayala Land, Inc., SM Group, Robinsons Land Corp. and Filinvest.

"We won’t be present here if we don’t see the opportunities in the property sector to be correspondingly high. Our economic requirements propel us to be here," Mr. Antonio said.

Data from the Housing and Urban Development Coordinating Council showed that Cebu is short by about 170,000 residential units for the mid- to high-end market, based on estimated demand against actual construction in the past 10 years.

The backlog for socialized housing is much greater at over one million.

Over 20 condominium projects are under way, but the total capacity of all developments in Cebu now doesn’t exceed 20,000 units, Taft Property Ventures Development Corp. chief operating officer Manuel Colayco, Jr. had said. -- Marites S. Villamor

Friday, July 22, 2011

Eldest son of Senator Villar takes the reins at Vista Land

By Zinnia B. Dela Peña (The Philippine Star) Updated July 23, 2011 12:00 AM

MANILA, Philippines - The eldest son of Sen. Manuel B. Villar is taking the reins of the family’s listed property holding firm Vista Land & Lifescapes Inc., which sells five brands under its wing.

In a statement issued yesterday, Vista Land said Manuel Paolo, who used to be the company’s chief finance officer, has assumed the post of president and chief executive officer, replacing Benjamarie Therese Serrano.

Serrano will assume a senior executive position in Fine Properties Inc., the investment holding company of the Villar family, while remaining a non-executive director in Vista Land.

Paolo, who turns 35 today (July 23), is a graduate of the Wharton School of the University of Pennsylvania, where he majored in Economics. He has held various senior positions in the Vista Land Group since 2001.

Vista Land is the holding company of five business units: Brittany, Crown Asia, Camella Homes, Communities Philippines and its condominium development subsidiary, Vista Residences. The company claims to have the widest presence in the Philippines among all the major property developers.

Paolo was instrumental in the public listing of Vista Land on the Philippine Stock Exchange. He spearheaded all major fund-raising activities for Vista Land over the last few years, after heading the Corporate Planning Group of Crown Asia Properties, Inc. (a subsidiary of Vista Land).

He worked for McKinsey and Co. in the United States before returning to the Philippines in 2001 to join the Vista Land Group.

Paolo’s appointment comes at a time when the group is aggressively expanding its presence in the highly competitive property sector.

Vista Land, which has sold over 250,000 homes in its 35 years in the business, has set a capital expenditure program of P45 billion from 2011 to 2013.

The company is aiming to further enlarge its footprint to reach 70 municipalities and cities by next year from the existing 48.

For this year, it intends to make its presence felt in Ilocos Sur and Ilocos Norte, La Union, Nueva Ecija, Bicol, Batangas, Quezon, Bataan, Pampanga, Davao, Butuan, Agusan del Sur and Zamboanga.

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Camella eyes Tagum City

Sunday, August 14, 2011

AS CAMELLA expands its presence in Southern Mindanao, it is always on the lookout for promising and fast-growing cities to locate its masterplan projects.

The most recent host to another landmark development of Camella is vibrant Tagum City.

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Camella looks to the growing population of a city where jobs are robust and industries are growing and both are poised to continue for many years to come.

It provides stylish and functional housing to meet the budding lifestyle of the emerging populace.

"We strategically identify new locations for our projects, and we believe Tagum's promising growth matches Camella's pioneering spirit of building communities in dynamic and fast growing markets in the country," said Marlon B. Escalicas, Camella Davao general manager.

As Tagum pursues its mission to become a developed city sustained by its strong agro-industrialization, it also aims to provide a peaceful environment to enable its people live a good quality of life. This is where Camella comes in, with its master planned subdivision that offers the best housing option to the people of Tagum to live the good life.

As the city progresses, its people will need well-appointed homes that will cater to their elevating tastes and lifestyle. As the country's largest homebuilder with over 250,000 homes built all over the country in 35 years, Camella knows what to offer this rising city.

Camella Tagum is a subdivision that will bear Italian-Mediterranean theme on its elegant homes that will be built on 14 hectares of prime flat land at the Visayan Village along the National Highway. Like any Camella community, the houses will be set within an environment of lush plant life, well-kept lawns and landscape, with a plus - a refreshing mountain view as a backdrop.

Camella Tagum homeowners will get to enjoy complete facilities and amenities, such as the clubhouse, swimming pool, gardens, playground, parks, and multi-court activity area.

The subdivision will also have an impressive entry gate that leads toward the entrance plaza, underground storm drainage, water system, complete electrical facilities, perimeter fence, and 24/7 security system. Camella will even provide shuttle service for the convenience of the homeowners within the subdivision.

Camella Tagum is seen to revitalize the neighborhood communities of Tagum, setting the pace for a new standard of living with its stylish and affordable houses, world-class amenities, and premier location.

While Camella Tagum carries the Camella trademark of quality, durable homes, world-class amenities, and the ambiance of high-end residential developments, it is offered at reasonably priced packages that go as low as P655,000 or P7,988 a month, or P266 per day.

With Camella, home ownership is within the easy reach of families with its flexible financing schemes, deferred cash option, payment discounts, and fast reservation process.

"In the same way that we created two of the most admired subdivisions in Davao City, the Caribbean-themed Solariega and Italian-inspired Toscana, we will also make Camella Tagum another community that this city will be proud of," Escalicas said.

Camella accepts all inquiries at their offices at 2/F Delgar Building, J.P. Laurel Ave., Davao City, or at 222-0963 and 0917-563-9617, or email vismin@camella.com.ph.

Published in the Sun.Star Davao newspaper on August 15, 2011.

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Thursday, September 22, 2011

Philippines as the next investment destination

TUESDAY, 12 JULY 2011 16:03 AIR URQUIOLA

The Metro Manila office market is experiencing a steady rise in lease rates as vacancy rates continue to fall to single-digit levels as of the second quarter of 2011 based on the recent findings by leading real-estate advisory firm CB Richard Ellis Philippines (CBRE).

In a recent press conference held at the Peninsula Manila in Makati City, CBRE CEO and chairman Rick Santos discussed growth on the different sectors of the Philippine economy, with the real-estate sector being a major contributor to the country’s economic growth. “The real-estate sector continues to be showing positive output during the first half of President Aquino’s administration. CBRE has been monitoring record investments pouring in Asia like in China and Singapore. The Philippines’ real-estate sector, on the other hand, has had huge demand. This can be seen in various developments by real-estate companies not only in the major business districts here in Manila but in key cities as well,” said Santos.

While much of the gains were made by the manufacturing sector, with the country’s GDP increasing by 4.9 percent in the first quarter, this growth was supported by real estate, renting and related business activities.

The Philippine business-process outsourcing (BPO) industry continues to expand. This expansion is seen to translate to the need to build close to three million square meters of office space. A need that is expected to drive further growth in the real-estate sector.

Vacancy rates are falling while lease rates continue to improve in all major business districts on the back of strong corporate expansionary demand coupled with a tight market supply. Office absorption was active in the first half with higher tenant requirements for both BPO and traditional offices. In Makati CBD, vacancy rate decreased to 4.64 percent during the second quarter of 2011 from 5.3 percent in the previous quarter. Vacancy has likewise decreased in Fort Bonifacio from 5.34 to 1.48 percent. In Ortigas, vacancy in the second quarter went down from 3.04 to 2.96 percent. Vacancy rates in Quezon City and Alabang have also declined to 2.79 and 3.08 percent, respectively.

Lease rates of the business districts have consistently been on the uptrend. The sustained demand for office space from expanding BPO companies has further pushed the rental rates up in the commercial areas of Taguig, Alabang and Quezon City.In Fort Bonifacio, lease rates increased by 1 percent from P691 per sq m in the previous quarter to P698 per sq m in the second quarter. Alabang posted a 6.1-percent increase in lease rates during the second quarter with rates now at P521 per sq m to P491 per sq m, while lease rates in Quezon City also went up by 3.1 percent from P501 per sq m in the first quarter to P516 per sq m. Meanwhile, lease rates in Makati CBD regained momentum as rents continue to go up by 2.65 percent in the second quarter amid the increasing demand by both multinational and local companies. Lease rates in the Makati CBD are now at P809 per sq m, up from P780 per sq m in the previous quarter, while lease rates in Ortigas posted an increase in the second quarter from P550 per sq m to P554 per sq m.

Leased commercial spaces across Metro Manila remain strong as ready-for-occupancy supply are taken up with few small office spaces left. Across these business districts, vacancy in the second quarter was below 5 percent. Prime office buildings in Makati registered a 2.63-percent vacancy rate, pulling down the vacancy rate in the CBD to 4.64 from 5.3 percent during the first quarter.

Santos said that the administration of President Aquino is doing a great job of implementing economic policies and, in fact, he sees a continued upbeat movement within the next four to five years. “We believe the Philippine office sector has some of the best fundamentals of all the Southeast Asian markets. While lease rates are on the rise, our office rental rates remain one of the cheapest in Asia. This high demand in office space despite the limited supply is a positive indication that Metro Manila and the Philippines in general remains one of the favored business destinations, particularly by the BPO sector destinations in Asia,” Santos shared.

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Date: Saturday, 5 November, 2011, 4:26 AM

BIR amends tax in sale and lease of real properties

November 4, 2011/ http://www.sunstar.com.ph/bacolod/business/2011/11/04/bir-amends-tax-sale-lease-real-properties-188668

“THE sale of real properties held primarily for sale to customers or held for lease in the ordinary course of trade or business of the seller shall be subject to the value-added tax (VAT).”

Section 2 of Bureau of Internal Revenue (BIR) Revenue Regulations (RR) 16-2011, which further amended RR 16-2005 or the Consolidated VAT Regulations of 2005, states that “the sale of residential lot with gross selling price exceeding P1,919,500 and residential house and lot or other residential dwellings with gross selling price exceeding P3,199,200, where the instrument of sale (deed of absolute sale, deed of conditional sale or otherwise) is executed on or after November 1, 2005, shall be subject to a 10 percent output VAT, and starting February 1, 2006, to 12 percent output VAT.”

If two or more adjacent residential lots are sold or disposed in favor of one buyer to use the lots as one residential lot, the sale shall be exempt from VAT “only if the aggregate value of the lots do not exceed P1,919,500,” the BIR ruled.

It explained that adjacent residential lots, although covered by separate titles and/or separate tax declarations, when sold or disposed to one and the same buyer, whether covered by one or separate deed of conveyance, shall be presumed as a sale of one residential lot.

Meanwhile, lease of residential units where the monthly rental per unit exceeds P12,800 but the aggregate of such rentals of the lessor during the year do not exceed P1,919,500 shall be exempt from VAT but shall be subjected to the 3 percentage tax, the new policy stressed.

In cases where a lessor has several residential units for lease, with some not exceeding P12,800 while others are leased out for more than P12,800 per unit, “the gross receipts from rentals not exceeding P12,800 per month per unit shall be exempt from VAT regardless of the aggregate annual gross receipts.”

But the gross receipts from rentals exceeding P12,800 per month per unit shall be subject to VAT “if the aggregate annual gross receipts from said units only (not including the gross receipts from units leased for not more than P12,800) exceeds P1,919,500.00. Otherwise, the gross receipts will be subject to the 3 percent tax imposed under Section 116 of the Tax Code.”

BIR said the term 'residential units' shall refer to apartments and houses and lots used for residential purposes, and buildings or parts or units thereof used solely as dwelling places like dormitories, rooms and bed spaces except motels, motel rooms, hotels, hotel rooms, lodging houses, inns and pension houses.

The term 'unit' shall mean an apartment unit in the case of apartments, house in the case of residential houses; per person in the case of dormitories, boarding houses and bed spaces; and per room in case of rooms for rent.

RR 16-2011, which increases the threshold amounts for sale of residential lot, sale of house and lot, lease of residential unit and sale or lease of goods or properties or performance of services as per Section 109 of the Tax Code of 1997, as amended, shall take effect starting January 1, 2012. (CGC)

Published in the Sun.Star Bacolod newspaper on November 04, 2011.

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Tax hike to greet property owners in 2012

Katrina Mennen A. Valdez Reporter/ December 12, 2011/ http://www.manilatimes.net/index.php/business/top-business-news/12997-tax-hike-to-greet-property-owners-in-2012

LAND owners are poised to pay higher real property taxes next year as local government units complete the update of their respective schedules of market values in a bid to raise more revenues.

So far, five provinces and 10 cities have already updated their schedules for real property tax assessments, while 12 provinces and 26 cities would undergo reviews starting next year.

The review stemmed from a joint memorandum circular issued last year by the Departments of Finance and of Interior and Local Government.

Issued in October 2010, Joint Memorandum Circular 2010-01 ordered all LGUs to update the schedules used by local assessors as basis for appraising properties for real property tax purposes.

“Using an updated SMV as basis in the assessment of real property tax increases LGUs’ capacity to generate revenue from real properties so that they do not depend much on their share of internal revenue allotment (IRA),” said Salvador del Castillo, officer-in-charge of the DOF-Bureau of Local Government Finance (BLGF).

IRA is the LGU share of revenues from the national government mandated under Section 284 of the Local Government Code. Provinces and cities would recieve 23 percent of total IRA, while municipalities, 34 percent; and barangays, 20 percent.

“By making SMV current, real property tax base expands, thus, provides LGUs the opportunity to generate additional income which can be used to finance various projects and improve delivery of basic services,” del Castillo said.

Under the law, LGUs should conduct a general revision of assessments and property classification every three years to reflect true market values of properties.

Del Castillo said most LGUs have yet to comply with this provision of the law.

Data from the BLGF, which has supervision over all LGU treasurers, showed that only 28 percent of the provinces and 22 percent of the cities in the country have revised their SMVs as of the last scheduled revision in 2008.

To date, a total of 29 provinces and 84 cities have yet to revise their SMVs with base years 2006 or even older.

“There are even a number of LGUs whose real property tax collections are based on the SMVs going back to 1996 and even 1993 when it was first implemented,” del Castillo said.

“If the LGU uses outdated SMVs in real property tax collection, then properties which have appreciated in value over time would still be taxed based on the lower values, thus taxes imposed are lower than what they should really be,” he said.

“Conversely, properties which have depreciated in value over time would still be taxed based on higher value, penalizing property owners as they are taxed higher than what they should really be taxed with,” he said.

As to concerns that revising SMVs will cause property taxes to shoot up, del Castillo said that the assessment levels or tax rates—two other factors being used to compute for real property tax—may be adjusted by the LGUs to cushion the impact of the increases in real property taxes.

“Tax policy options such as phased or staggered implementation and discounts for early tax payments should also be optimized to mitigate potential tax hike,” del Castillo added.

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Nexus launches three new projects in Cebu
(The Freeman) Updated October 25, 2008 12:00 AM Comments (0)

Eyeing a growing demand for housing, a new player in Cebu’s property development industry recently launched three new projects that target the middle to high-end segments of the market.

Since its inception in 2001, Nexus Real Estate Corporation has established its reputation by selling subdivided lots and building house and lots in several of Cebu City’s prominent subdivisions.

And with a string of successful projects, Nexus Real Estate continues its mark as a reputable developer with three new projects composed of Kamalaya Residences, Cypress Point Townhouses, and the Villagio de Dolce Vita.

Kamalaya Residences is composed of exclusive 31 one-storey and two-storey houses ideal for new families from the middle cost market with unit prices that ranges from P1.5 to P2.5 million

This exclusive Eden is close to the South Reclamation Project (SRP), church, schools and similar institutions and has ready water and electricity connections, said Shanna Louise Te Lopez, VP for Sales and Marketing of Nexus Real Estate Corporation.

Villagio de Dolce Vita on the other hand is a relaxing, two-hectare community that captures countryside charm with town homes nestled amid the lush greenery of San Fernando.

Lopez said that The Villagio is composed of 300 units worth below one million as it aims to provide affordable housing to prospective clientele who hopes to establish their dream homes in the South.

While the Cypress Point Townhouses aims to capture the higher end of the market with 13 units that will showcase the first of its kind Southern Miami architectural design here in the country, said Lopez.

The exclusive townhouses in Cypress Point, located in Paknaan, Mandaue will be priced from five million to six million pesos, she said.

Lopez announced that all these new developments will be delivered by 2009 and this month they will already start with the ground breaking and the construction of Kamalaya Residences.

Nexus Real Estate’s portfolio of completed residential projects include the Pacific Village, Consolacion Valley, Roseville and among others.

The company is in between socialized housing players and high end developers as they focus on providing housing to the middle market composed of overseas Filipino workers and their families, start-up families and young executives.

Lopez said that the three new projects that they have shows their bullishness with Cebu’s property industry amidst the glooming crises.

She said that people may be holding on to their money right now considering the effects of lowered consumer spending, but their company believes that investments in housing are basic needs of people.

Being a new and a smaller player, Nexus Real Estate hopes to position itself as an affordable and quality-conscious developer, said Lopez.

“We are committed to developing secure and premium housing communities that people of varied lifestyles call home as we want to ensure total customer satisfaction. We are very bullish in our developments because we know that people needs a house so we will be continuously looking out for more lots to be acquired to build homes that people can own,” she said.

Nexus Real Estate is under the Urban Investor Group of Companies, engaged in lending, real estate and financing. Among its affiliated companies include Urban Investor Inc., Blue Mountain Financing Corp., RTL Enterprises, Pacific Pensionne, First Happy Rice People Company, WT Construction and JVT Enterprises. —Rhia de Pablo

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Wednesday, January 11, 2012

Fund offers loan, fee condonation

Thursday, January 12, 2012

PAG-IBIG Fund Cebu South department manager Rio Teves announced that the housing loan restructuring and penalty condonation program is now available to all housing loan borrowers (except window 1 accounts) with over three months in arrears in amortization payments.

He said qualified borrowers should apply immediately since the penalty condonation clause of the program is up to June 30, 2012 only.

Applications filed after Junbe 30 can only avail of loan restructuring, without the benefit of penalty condonation.

Teves hopes concerned housing loan borrowers will take this last and final opportunity to save their property from foreclosure or cancellation.

Housing loan borrowers who would like to avail of the program are advised to visit Pag-IBIG Fund or call the loans and contribution management and recovery division at 234-2709 and 231-5570.

Pag-Ibig Fund is also offering a penalty condonation program for delinquent and unregistered employers.

The program applies to employers who failed to remit the membership contributions of their employees.

Qualified employers may apply for penalty condonation on their counterpart contributions.

Employers who collected membership contributions and short-term loan payments from their employees but failed to remit the same to the fund and employers who have previously availed of any penalty condonation offered by the fund are excluded from the coverage.

Employers have until June 30 to apply as beneficiaries. (PR)

Published in the Sun.Star Cebu newspaper on January 12, 2012.

Sunday, December 13, 2009

Nominations to body to draft RESA rules up

Sunday, December 13, 2009

Real Estate industry posts 15% sales hike

AboitizLand unveils new urban village development: The Persimmon

Ayala Land unveils 2010 plans in multiple growth centers

SM signs P2.7B deal with Cebu City

Pag-IBIG readies more loans for housing

Draft REIT rules issued by regulator

Aquino tells Cebuanos: Investment confidence in RP ‘very, very good’

Friday, July 22, 2011

Eldest son of Senator Villar takes the reins at Vista Land

Philippines as the next investment destination

TUESDAY, 12 JULY 2011 16:03 AIR URQUIOLA

Wednesday, January 11, 2012

Fund offers loan, fee condonation

Thursday, January 12, 2012

American broker works on Cebu realty database