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Monday I 03 July 2015

IEC participants to benefit condominium owners

Condominium investors may benefit from the 51st International Eucharistic Congress
(IEC), which will draw more than 50,000 people to Cebu in January next year. Anthony
Leuterio, president of online rental portal Rent.ph, said the big number of IEC guests
from all over the world cannot all be accommodated in Cebus hotels. Hence, condominium owners, particularly investors, can take advantage of this market demand. Although the church is also encouraging Cebuanos to accommodate IEC guests in their
own homes, Leuterio said there are others who prefer to stay in their own private place.
This is where condominium investors, who lease out their units for income, earn from
the thousands of international guests. He projected that this can go beyond 50,000.
Should Pope Francis decide to attend the IEC, Leuterio said the number of guests will
increase exponentially.
Source: SunStar, 25 June 2015 (Thurs)

Developer shells out P1B for flagship project

A Cebu property builder sets to complete its flagship condominium project by 2017,
estimating its total investment to reach close to P1 billion. Beverly Dayanan, president
and chief executive of Contempo Property Holdings, announced yesterday that her
company is breaking ground the third tower of its one-hectare Bamboo Bay condo project in Mandaue City in September this year. Dayanan told reporters in an interview that
the company is set to turn over the units of its first tower to homeowners by end of the
year. The second condo tower which the property firm topped off yesterday is targeted
to be completed and delivered to unit owners late next year. The property developer
is investing around P986 million for the completion of the 750-unit condo project which
started construction in 2013. She said majority of the buyers of Bamboo are investors
those who rent their units for profit, and the rest are end users who are in the middle
market segment. When asked about the plans in the next few years, Dayanan said the
company is looking at developing both condo and housing projects in Cebu, noting the
strong demand in the real estate sector. But the official declined to give further details
on the matter. Sunberry Homes Inc, a Contempo affiliate, is also building a 2.5-hectare
mass housing project in Mactan Island with an initial investment of P100 million.
Source: The Freeman, 25 June 2015 (Thurs)

Streetscape: a new place to hang out

Jessica and Carla Go long planned to bring a new dining and lifestyle concept to Cebu.
After acquiring the 4,000 square meter lot in Paseo Saturnino, Ma. Luisa Road, Banilad,
the mother-daughter tandem built Streetscape, a two-storey commercial strip that offers
new concepts in food, health and wellness, learning, and convenience stores. Before
they opened Streetscape, Carla said her mother Jessica kept herself busy with her real
estate business Jedca Development Corp. for 20 years. However, their familys main
business is in oil manufacturing. The neighborhood commercial development which
has 35 units are now occupied by 20 tenants, of which 13 have already started commercial operations. By August, Carla expects all stores to be fully operational. Asked
if there are plans to develop a similar concept in other areas in Cebu, Carla said they
will first focus on developing and marketing Streetscape. She disclosed that the family
has properties that they can convert into residential or commerical projects, depending
on market demand.
Source: Sunstar, 27 June 2015 (Sat)

Filinvest eyes high-rise projects in SRP

With land value rising in the South Road Properties, a Filinvest Land Inc. (FLI) official
said that the companys future projects in the SRP will mainly be high-rise buildings.
Boler L. Binamira Jr., FLI assistant vice president and Visayas area sales head, revealed this on Saturday on the sidelines of a topping-off ceremony for the third building
of Amalfi, a nine-building condominium project. Amalfi, together with San Remo Oasis,
is part of the first cluster inside the 40-hectare property FLI that is developing under a
joint venture with the Cebu City Government. Binamira said there will be seven more
clusters to be developed by the company. The first cluster will be different from the others because it will be the only low-density and low-rise portion of the master-planned
community with only five levels per building. The rest, Binamira said, will be high-rise
residential projects. Aside from these projects in the City di Mare site, Filinvest is developing a separate 10-hectare property, the lifestyle and retail hub Il Corso. When we
started before (around 2009), property price was still at P12,000 to P15,000 per square
meter, but now its valued at around P30,000, Binamira said. The best way to maximize
the property, he observed, is to develop vertically.
Source: Sunstar, 29 June 2015 (Mon)

Cebu City makes P1.6B in 1 day

The Cebu City Government made P1.6 billion in one day, after it conducted the bidding for three lots in the South Road Properties
(SRP) with a combined area of 45.2-hectares. A consortium of Ayala Land-Cebu Holdings Inc. and SM Prime Holdings Inc. were
the lone bidders for a 26-hectare parcel and offered P10 billion or roughly P38,000 per square meter. Filinvest Land Inc. placed the
highest bid for the two other parcels, which have a combined area of 19.2 hectares. Its offer: P6.758 billion or about P35,128 per sq.
m. City Hall had expected to get at least P9.15 billion for all three lots. It raised P16.76 billion yesterday. It also received P1.6 billion
as the bid security, which forms part of the down payment and is equivalent to 10 percent of the total bid price. It will serve as a guarantee that the successful bidder will enter into a contract with the City after they are awarded the lots. Treasurer Diwa Cuevas said
the P1.6 billion was the highest revenue City Hall has ever generated in just a day. The Ayala-SM consortium turned over yesterday
a check for P1.1 billion as their bid security, after they offered to pay P10 billion for the land. There is always something positive in
synergy between the two parties and we are very thankful to Ayala for giving us this opportunity to tie up with them, said SMs Vice
President for Market Research and Planning Ronald Tumao. Tumao said this is the first time they will be working with Ayala on a
big collaboration in Cebu.
Source: Sunstar , 1 July 2015 (Wed)

Singaporean developer breaks ground on first Cebu project

A Singaporean real estate developer recently announced to build more affordable residential units in Cebu, including investments
on facilities that support health and wellness. Wei Kiat Management and Development Company, President Don Ang made this
announcement yesterday during the ground breaking ceremony of the companys flagship project, the 32-storey La Nivea condominiums located at Nivel Hills. The 350-unit condominium project marks the companys aggressive entry to the robust real estate
business in the Philippines. Its fully-furnished units are priced within the P2 million range. Company vice president Chris Ang said
that they need to establish its brand first through the La Nivea project, before it will introduce a series of housing and wellness investments in the medium term. In the next few months, the company will introduce another affordable condominium units in Mabolo
as its second project in Cebu. With units pegged to as low as P1.2 million, Chris said that the Mabolo project will offer 150 condo
housing units. Based on the companys market study, Don said that Cebu primarily needs affordable housing units both in vertical
and horizontal developments.
Source: The Freeman, 1 July 2015 (Wed)

Cebu Landmasters announces new development

Cebu Landmasters, Inc. (CLI) is set to develop its newest project in the heart of Cebu City at a neighborhood that stands as a landmark for the Cebuanos, the Base Line Center. From a former recreational and sports facility over the past decades, Base Line Center
will have four towers that will be built in two phases, disclosed Jose Franco B. Soberano, CLI chief operating officer. This development comes in the heels of the completion of Baseline Residences located adjacent towards the south of Base Line Center along
Juana Osmea St. in Cebu City. The first phase of the project includes two towers that feature a commercial area with grocery store
and food and retail outlets. Base Line HQ will be a 21-storey office condominium, a better option for business owners and investors
seeking the advantage of operating from the heart of Cebu City. With the third to the eighth floors meant for offices, the ninth floor
and the succeeding levels have been designated for condotel units that will be operated as serviced residences. Both offices and residences will have separate lobby access. Base Line Premier, on the other hand, will be a 27-storey residential condominium designed
with contemporary architecture to maximize the best views of midtown Cebu with the units designed for flexible interior configuration.
Source: Sun.Star Cebu 3 July 2015

Contact details
David A. Young
Managing Director
Philippines
david.a.young@colliers.com

Ieyo de Guzman
Executive Director
Investment Services
ieyo.deguzman@colliers.com

Jet Ilaga
Executive Director
Real Estate Management Services
jet.ilaga@colliers.com

Marissa Benitez
Consultant
Valuations & Advisory Services
marissa.benitez@colliers.com

Jie Espinosa
Director
Office Services
jie.espinosa@colliers.com

Julius Guevara
Director
Research & Advisory Services
julius.guevara@colliers.com

Paul Vincent Ramirez

Associate Director
Valuation & Advisory Services
paul.ramirez@colliers.com

Gigi Limguangco
Associate Director
Residential Sales & Leasing
gigi.limguangco@colliers.com

Chris Wells
Consultant, International Sales
Residential Sales & Leasing
chris.wells@colliers.com

Veronica Cabigao
Analyst
Research & Advisory Services
veronica.cabigao@colliers.com

Doreen Alo
Manager
Cebu Office
doreen.alo@colliers.com