Sustained momentum

IF past trends are to be made basis, the National Economic Development Authority (Neda) 7 has reason to believe the economy of Central Visayas grew by six percent “at the very least”.

http://www.mediahub360.com/virtual-tours/robinsons/final/amisa/index.html

An economic situation report prepared by Neda 7 Assistant Regional Director Efren Carreon stated that past trends show the region’s growth is faster than that of the national economy.

According to the report, Central Visayas posted 12.5 percent GRDP (gross regional domestic product) in 2010, the highest growth in the country that year, and 7.5 percent in 2011, second to the Caraga’s 9.6 percent growth.

Carreon pointed out that compared with the Philippine economy, which grew by 7.6 percent in 2010 and 3.9 percent in 2011, Central Visayas has consistently shown stronger growth.

“I am glad to report that preliminary indicators suggest that the Central Visayas economy was able to sustain the economic growth momentum realized in 2010 and 2011,” Carreon said.

Carreon said that many leading industries continued to turn in good performances in 2012.

With the Philippine economy growing 6.5 percent for the first nine months of 2012, they are confident that the region posted a high growth for the whole year, citing the last two years showing Central Visayas surpassing the national average.

For Neda 7, industry and services are what drive the region’s economy. Carreon said the sustained expansion of outsourcing and tourism markets fueled the growth of construction, real estate, transportation, retail trade and banking sectors. The high level of consumption among families of overseas Filipino workers is also seen as benefitting the retail trade and real estate sectors.

Retail expansion

Citing a report from the Cebu Investment Promotion Center (CIPC), Carreon said 17 new foreign business process outsourcing companies opened in Cebu, majority of which were from the non-voice sector, a sector that requires high value-added skills.

Aside from the new locators, existing companies like Accenture Philippines and Stream Global Services expanded, providing more employment opportunities in the region.

In retail, store chains expanded operations while Cebu also saw new players joining the retail industry in Central Visayas. These included the new operations of SM Consolacion, Gaisano Grand Mall in Talamban, 7 Eleven, Mini Stop and Wilcon Builders Depot.

Carreon said retailers took advantage of increased consumerism and improved spending capability among residents here, as the purchasing power of consumers has risen due to the availability of well-paying jobs in the BPO sector and the steady remittances of OFWs.

The report also cited real estate and construction as among the sectors that benefitted from the expansion of other industries.

“More and bigger projects were stated in 2012 to support the expansion of the outsourcing, retail trade and tourism industries. The real estate and construction industries benefitted from the steady demand for real property investments from OFWs,” the report said.

The report noted data from the National Statistics Office showing an increasing trend in the number and value of construction projects of hotels, office buildings, stores and residential condominiums.

The Board of Investments also indicated 13 out of 24 projects registered with them in 2012 were for mass housing and hotel construction. The total estimated cost of these projects reached P4.3 billion, representing nearly 10 percent of total investments registered with the BOI in 2012.

Growth of real estate and construction has remained steady in the past two years as both sectors posted double-digit growth since 2010. They are also considered among the key contributors to the region’s economic growth.

Construction was the highest performing industry in 2011, with a growth rate of 21.5 percent while real estate services were the best performing sector at 10 percent.

The report also showed positive figures in tourism, shipping, aviation and exports, although the data available only covered the first half of 2012.

http://www.sunstar.com.ph/cebu/business/2013/01/25/sustained-momentum-264850

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DOT to explore new marketing strategies

CEBU, Philippines -  The Department of Tourism (DOT) is embarking on a market development thrust this year, which entails expanding the potential market for new users and new uses.

“We will look into segments that we have not thoroughly explored. We will explore more creative executions geared towards sustaining the fun we have started. We hope to have stronger representation and be part of the future of tourism in Asia,” said tourism secretary Ramon R. Jimenez.

Jimenez admitted that it is going to become increasingly challenging to meet the future targets, which is to hit 10 million arrivals by 2016, “but we know that Filipinos are the biggest believers of our slogan. It’s more fun in the Philippines.’

The secretary is confident however, that the country will be able to cross the five million milestones in 2013.

The country, bringing the slogan of “It’s more fun in the Philippines,” ended the year 2012 with a total of 4.3 million foreign visitors, a 9.07 percent increase from 3.9 million visitors recorded at the end of 2011.

The year 2012 marks the first time in the country’s tourism history to surpass the four million visitor arrival mark, said Jimenez.

South Korea set a new all-time high by supplying a total of 1,031,155 visitors or 24.13 percent of the total visitor volume to the Philippines.  Registering 11.45 percent growth from 2012, South Korea remains the biggest market and the first to contribute one million visitors.

The United States of America came in second with 625,626 visitors, equivalent to a 15.27 percent share. Japan ranked third with 412,474 visitors or 9.65 percent of the total inbound traffic.

Other markets consistently providing significant volume and positive growth are China with 250,883 arrivals (5.87 percent), Taiwan with 216,511 (5.07 percent), Australia with 191,150 (4.47 percent), Singapore with 148,215 (3.47 percent), Canada with 123,699 (2.90 percent), Hongkong with 118,666 (2.78 percent), Malaysia with 114,513 (2.68 percent), United Kingdom with 113,282 (2.65 percent), and Germany with 67,023 (1.57 percent). Overseas Filipinos supplied 5.05 percent to the total tourist traffic at 215,943 arrivals, exhibiting a steady growth rate of 4.24 percent.

“Crossing the 4-million mark is a feat in itself and puts us well on track to achieve our ultimate goal of 10 million visitor arrivals by 2016,” Jimenez enthused.

Three significant source markets have also surpassed their respective target arrivals for the year in review. Japan’s actual visitor arrival output of 412,474 is 3.86 percent higher than its target of 397,141. Taiwan surpassed 10.46 percent by registering 216,511 arrivals. Russia, an emerging market, yielded 22.12 percent more than its target of 23,149 arrivals.

The country achieved 93.8 percent of its 4,556,582 visitor arrival goal for 2012. Some shortfalls were felt due to economic and political pressures from traditional markets such as US, Europe, and China.

 However despite a few bumps on the road, all key source markets still registered positive growth for the year. (FREEMAN)

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RLC to launch 6 new projects

MANILA, Philippines - Robinsons Land Corp. (RLC), the property development arm of tycoon John Gokongwei, will launch six new residential projects this year as it expects stronger demand in the residential sector.

“We hope to launch at least six, a mix of condominiums and subdivisions,” RLC president Frederick Go told reporters on the sidelines of the 16th Outstanding Filipino Retailers & Shopping Centers of the Year awards night.

“In the past, most people thought that our residential business would either be negative or flat,” Go said.

However, sales turned out to be robust, with the residential business seen to outperform expectations this year, he said.

The six residential project launches slated this year in areas like Ortigas Center in Pasig, Manila and Quezon City is already higher than the four projects initially targeted by RLC, Go said.

In its 2012 fiscal year that ended last September, the residential division’s revenues fell five percent to P4.3 billion “due to lower project completion of various ongoing projects.”

To prepare for an expected higher sales, Go said the company beefed up its sales force last year.

RLC operates under four brands: Robinsons Luxuria for the high-end market, Robinsons Residences for condominiums in central business districts, Robinsons Homes for house-and-lot developments in provinces and Robinsons Communities for the middle income segment.

Last week, RLC announced a capital spending of P13 billion this year to take advantage of the sustained property boom. It is higher than the P9.5 billion in the 2012 fiscal year.

Of the capital allotment, two-thirds will be spent for the development of malls, office buildings and hotels while the remaining 33 percent will be taken up by residential condominium and housing projects.

Go said the capital expenditures will be sourced from internally generated cash of RLC, which is also into hotels, malls and office space development and management.

Profits of RLC rose seven percent to P4.2 billion in the 2012 fiscal year. The company has built 32 malls, 33 residential projects and eight office buildings to date.

Apart from its core property businesses, RLC is entering the gaming business. Late last year, it sealed a deal with Japanese gaming tycoon Kazuo Okada to jointly develop a $2-billion hotel and casino complex in the 100-hectare Entertainment City along Roxas Blvd.

Okada’s Tiger Resorts & Leisure Corp. is one of four groups that were granted a license by the Philippine Amusement and Gaming Corp. to operate a casino on a reclaimed land along Manila Bay, which the government expects to turn into the world’s number two gaming destination, ahead of Singapore and Las Vegas and behind only Macau.

http://www.philstar.com/business/2013/01/24/900336/rlc-launch-6-new-projects

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Mactan Island, Cebu Developments

Amisa Private Residences' aerial photo for the 3 of 6 tower condominium complex.Currently, it has 6 hectare master planned development with 210 meters beach front with hotel and entertainment center components. According to information, adjacent lot with an area of approximately 3.5 hectare was acquired as an addition to the estate and will expand the area to 9.5 hectares with an aggregate beach frontage of approximately 350 meters. Beach development will start within the quarter and tower C will start its turn over by 4th quarter of 2013, a year ahead of original schedule which is 2014.

Mactan Island, Cebu along Barangay Mactan and Punta Engano showing upbeat development. This will be the next "leisure and retirement district" in the future

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Inputs and descriptions herein are subject to verification and perspectives are "only" the writer's point of view and initial information gathered and known.

MANILA, Philippines - Investments in luxury property developments are expected to rise in Boracay, Cebu and Palawan as the government continues its promotion of these areas as tourist destinations, real estate advisory firm CBRE Philippines said.

CBRE Philippines chairman and founder Rick Santos said in a press briefing yesterday that as the government’s tourism promotions continue and foreign visitor arrivals increase, more investments in luxury developments are expected to be made in tourist destinations of the country.

“With tourism efforts now into full swing, a captive international market for destination properties in Cebu and Boracay will revitalize investment and luxury developments in these areas,” he said.

Liz Silvestre, CBRE Philippines associate director for investments and capital markets said in the same event they are seeing more investments in luxury property developments this year in Cebu, Boracay, as well as Palawan, as these areas are among the top tourists’ picks in the country.

She said many tourists are visiting these three locations not only because of the government’s continuous efforts to promote tourism but also because of special attention from overseas.

With more foreign travelers to these areas, opportunities are available for luxury property developers.

“The direction of investors is looking in to high-end developments in these areas,” Silvestre said.

She said there are property developers indicating interest to invest in these areas, with one even planning to bring a five-star hotel this year.

She declined to name the firms, but cited one recent luxury development in Boracay which is Aqua Boracay by Yoo.

Aqua Boracay is the first branded five-star class resort residence on the Island of Boracay.

Master-planned in a 16,000 square-meter property right across a pristine beachfront, Aqua Boracay comprises a four-story, low-density and low-rise building with 134 one-and two-bedroom luxury apartments, offering residences that are spacious, modern and have a sophisticated design.

Silvestre said that while there is interest to start more luxury developments in the country’s tourist destinations, the government would have to continue investments in necessary infrastructure to attract more tourists to these areas.

“We are seeing plans for refurbishments of airports, but we think the government will also have to start investing in the upgrade of ports,” she said.

Data from the Department of Tourism showed that arrivals to the country reached 4.273 million last year, up 9.07 percent from 2011.

The Philippines aims to attract 10 million visitors by 2016.(Phil. Star)

http://www.philstar.com/business/2013/01/24/900345/cbre-sees-increase-luxury-property-devt-tourist-areas

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AboitizLand to spend P8M for next Persimmon towers

CEBU, Philippines - After reaping positive sales performance from its condominium units at the Persimmon, the 1.4 hectare urban village project located in Mabolo, Aboitiz Land Inc., is now on the planning stage of building another two towers that would cost around P8 million of investment.
“We are on the planning stage now. Soon, we will announce the construction of two more towers of Permission,” said AboitizLand vice president for sales, marketing and customer service Pia Mantecon.
AboitizLand president Andoni Aboitiz said in an earlier interview that the company is spending at least P4 million for every tower. Now, Persimmon” has two twin-towers. All the 157 units at Tower 1 are already sold out, while the other tower with the same number of units is currently 40 percent taken.
Last Friday, AboitizLand formally opened the commercial component called “Persimmon Plus” a support facility which offers a total leasable area of 2,200 square meters.
At present, there are already seven merchants operating at “Persimmon Plus,” these include; Mr. Coffee, Happy Roaster Home Furnishing Store, Urban Indulgence Family Organic Spa and Salon, Softwash Laundromat, Cebu Trip Tours, and Flores fashion shop.
The Permission is the first condominium residential project of AboitizLand and is the first integrated urban village in Cebu.
The company announced earlier that it is spending P2 billion this year, to introduce more residential projects in Cebu, including expansions of its existing developments.
Bigger chunk of the capital expenditure (capex) allocation for this year will be poured on the expansion of “Persimmon.” The company will be spending about P400 million for the construction of each tower.
Aboitiz said the company is on the constant lookout available land, for other projects, especially for condominium developments, as it has seen a strong take up of condominium units in Cebu, since the company offered the Towers 1 &2 units to the market.
Part of the expenditure will also be used to construct the commercial segment of its high-end residential project in Talamban—the Pristina North, including the Town Houses component of the chic subdivision.
AboitizLand’s middle-range subdivision project in the Southern part of the City, Kishanta, will also be expanded next year, as take up sales is also starting to gain some ground, he said.
The company expects to complete all the 628 condominium units at 1.4 hectare Persimmon project located in Mabolo area soon.
“[We noted] good performance of [real estate] sales especially in the condominium market. Some years ago we made judgment call that Cebuanos will embrace condo living,” Aboitiz said adding that today, the condo market is hitting very strongly and the projects a more competitive market in the next few years.
“We are studying some areas and good properties [around Metro Cebu] for our future condominium development projects,” he said.

Source: The Freeman Cebu

Vista Land sets 22 new projects under Camella brand

MANILA, Philippines - Capitalizing on strong demand for affordable housing, Vista Land & Lifescapes Inc. has lined up 22 new projects this year under the Camella brand, translating to 17,500 new units located all over the country.
In a statement, Vista Land said the move is aimed at further cementing Camella  Homes & Communities’ dominant position in the affordable housing segment and boost its total portfolio to 97 projects nationwide.
Camella president Maribeth Tolentino said these new projects will be put up in various areas in Mega Manila as well as in key provinces and cities outside Luzon such as Cebu, Iloilo, Tacloban, Cagayan de Oro, Davao and Gen. Santos.
“We are leveraging the bigness of Camella, in terms of geographical reach, land banking, contribution to group sales, number of houses built and other key attributes, to achieve two aims more effectively. One is to be the first choice of home buyers on the basis of long-term satisfaction based on enduring quality and value. The other is to achieve higher levels of financial and operational efficiencies, and thus profitability,” she said.
Tolentino said the company, which has been providing value for money homes in master-planned communities for over 30 years, is targeting overseas Filipino workers who want to buy a house of their own.
Vista Land has earmarked P10 billion for capital expenditures this year for the launch of 30 new projects and landbanking activities. This would bring the group’s total number of projects to 157 , widely dispersed in 19 provinces and 46 cities and municipalities
Vista Land has built the largest number of homes among all local developers, a total of more than 200,000. Other companies under its wing include Brittany, which builds high-end communities; Crown Asia, focusing on the mid-range category; Communities Philippines, which develops projects in the provinces; and Vista Residences, the newly launched company and brand name which consolidates all of the group’s residential condominium projects.

Source: The Philippine Star

San Miguel to exercise Petron option this year

DIVERSIFYING food and beverage giant San Miguel Corp. is looking at pushing through this year with its plan to take a majority stake in Petron Corp.
"I think we might exercise the option this year," Ramon S. Ang, San Miguel chairman and president, told reporters yesterday.

San Miguel in December 2008 signed an option agreement with Petron’s owner, UK investment firm Ashmore Group, for a 50.1% stake in the refiner via the purchase of Ashmore unit SEA Refinery Corp. The option, which cost San Miguel $10 million, expires in December this year.

Exercising the option, Mr. Ang said, would be followed by a tender offer.

Ashmore currently owns 91% of Petron but last year already allowed San Miguel to join the refiner’s board.

Ashmore first bought into Petron in March 2008 by taking Saudi Aramco’s 40% stake for $550 million. The investment firm later that year raised its interest to 51% via a tender offer, then capped the year by purchasing the government’s 40% stake for P25.7 billion. At the time of the government stake sale Ashmore said it could turn around and resell to another party.

Mr. Ang’s statement sent Petron share prices to as high as P6.20 yesterday. The firm closed the day at P5.60

Source: Businessworld Online

GMA inks land titling, tax info sharing laws

TWO LANDMARK LAWS -- one allowing the sharing of taxpayer information with foreign entities and another making it easier for Filipinos to secure land titles -- have been signed into law by President Gloria Macapagal Arroyo.
Approval of Republic Act 10021, or the Exchange of Information on Tax Matters Act of 2009, was prompted by the Organization for Economic Cooperation and Development’s (OECD) blacklisting the country as a tax haven last year.

"It is the declared policy of the State to promote and pursue tax environment that contributes in sustaining a favorable international investment climate and instills confidence in the adequacy and capacity of the country’s tax administration to comply with its commitments under existing international conventions or agreements on tax matters," Section 2 of the new law, signed by Mrs. Arroyo last March 5, states.

It allows the Bureau of Internal Revenue chief to inquire into bank deposits and other related information held by financial institutions following a requests by a foreign tax authority.

The new law likewise allows a foreign tax authority to examine the income tax returns of taxpayers in the country.

Local authorities had previously said they could not comply with the international tax information standard given bank secrecy laws, among others.

While the Philippines was quickly put on by the OECD on a "grey" list last year after local officials committed to pass relevant laws complying with an international tax standard, France last month said the country was on its list of tax cheat-friendly states.

Mrs. Arroyo, meanwhile, also signed into law Republic Act 10023, otherwise known as the Act Authorizing the Issuance of Free Patents to Residential Lands, last March 9.

It amended Commonwealth Act 141 or the Public Land Act.

The new law states that Filipinos who occupy untitled residential lands for at least 10 years -- down from the previous requirement of 30 years -- may apply for titles.

It also makes it easier for landowners to apply for titles as they simply have to apply for one at the Department of Environment and Natural Resources without the need to hire the services of a lawyer.

Landowners, however, will only be given titles as long as the land will be used for commercial purposes.

Banks are expected to benefit from the new law as the land titles can be used as collateral to secure loans from banks.

"This will boost lending since the landowners will now have collateral for borrowing," Chamber of Thrift Banks Executive Director Suzanne I. Felix said in a text message yesterday.

Source: Businessworld Online

Villalons to take full control of Monterrazas development

CEBU, Philippines - Landco Pacific Corporation and Genvi Development Corporation officially ended their agreement to jointly develop the 210-hectare high-end hillside residential resort called Monterrazas de Cebu.
Genvi Development Corporation, owned by the prominent Villalon family in Cebu who is also the landowner, is now taking full control of the development, after the two companies terminated their joint venture agreement recently.
In a press conference, Genvi Development Corporation president and general manager Augusto Villalon said that the company is committed to stick with the original plan to develop the entire 210-hectare property with a capital expenditure of P5 billion in the next 10 to 15 years.
Despite the termination of Genvi’s partnership with Landco, Villalon assured property owners, and prospective buyers of Monterrazas de Cebu to fast track the project. The targeted completion of the phase one of the project was delayed due to drainage and environmental problems, among others.
Villalon said Monterrazas de Cebu will now become Genvi’s biggest real estate project, as the company had only been developing small low-cost housing projects in Cebu.
Although the company has not been known as developer of big residential and high-end projects, the Villalon family committed to continue the original masterplan. In fact, it has readied a P300 million budget to move the development faster in the next 30 months.
“We are laying our company on the line here. We have to fulfill what is expected from us,” said Marga Villalon, Genvi’s vice president and treasurer.
In an official joint statement, Villalon and Landco Pacific Corporation president and chief executive officer (CEO) Alfred Xerez-Burgos III said they have agreed for Genvi to take over as developer and landowner of Monterrazas de Cebu.
Villalon reiterated the Genvi’s commitment to pursue Landco’s original vision for the project, while Landco agreed to be a consultant in the next several years to ensure smooth transition.
Early last year, the Metro Pacific Investment Corporation (MPIC) trimmed down its stake of Landco from a majority 51 percent to 30 percent, after agreeing to sell part of its shareholdings to AB Holdings for P220 million.
AB Holdings acquired P500-million loan to MPIC, an earlier report said that AB Holdings used Landco’s shares in three mall corporations to pay up the loan exposure.
Landco is one of the country’s biggest real estate developers. The Monterrazas de Cebu could have been the company’s flagship showcase in its first entry in the Visayas.
Villalon, who is a well-known architect in the country, assured that the phase I of the project, which is composed of two cluster lots, is scheduled to complete in the next three years, and land owners can already build their houses by the end of this year.
Upholding their good name as Cebuanos, the Villalon family erased impressions on the project’s uncertainty, instead vowed a much faster completion of the development.
“We know there will be market apprehensions, it is expected. But the proof is our delivery. We have a fantastic team that is very experienced in this kind of development,” Marga Villalon said.
Landco and Genvi inked the joint venture agreement in December of 2006, to start the Monterrazas de Cebu project, which is one of the largest integrated residential development projects, being built in Cebu in the last few years. It is located in the huge 220-hectare prime hillside estates which covers several barangays in Cebu City Labangon, Sapang Daku, Guadalupe and Buhisan.
 The development, which will build complete line of real estate products, such as chic home address, townhouses, condominiums, commercial/lifestyle facility is targeted to complete in the next 10 to 15 years.

Source: The Freeman Cebu

Consumers warned vs low-quality cement

IMPORTED cement now being used in construction projects in Metro Manila is substandard and
was brought into the country without proper clearance from the government, a consumer
advocate warned.
“Cement imported from Vietnam is now being used without the required Import Commodity
Clearance [ICC] from the Department of Trade and Industry [DTI],” said Adrian Sison, a lawyer
known for his proconsumer advocacies.
Before an ICC is granted, the commodity being imported has to pass certain quality tests to
ensure that it will not endanger consumer welfare and safety, Sison explained.
Sison said an importer has already used the cement in a construction site on Tatalon Street,
Ugong, Valenzuela City, without any ICC. What is worse, he said, is that there are reports that
the cement used failed the quality test that the DTI conducted.
The cement bags, he pointed out, are also without the proper markings required by the DTI to
guide consumers on the product’s proper use. This enables the government to track the identity
of the manufacturer, who can be held accountable for any problems arising from the cement’s
use. These bags are also not in the 40-kilogram bags as required by law.
Sison pointed out that the cement in question was stored in a place different from what is being
claimed, thus making government monitoring of this particular cement shipment
difficult—constituting a third violation, the lawyer said.
Sison alerted the DTI of a similar cement importation in May last year. He is now again calling
the attention of the department to look into what he noted are violations of the law, as well as
DTI trading rules, in order to protect consumer welfare and safety.

Source: The Businessmirror Online

Real estate loans rise in ‘09

UNIVERSAL, commercial and thrift banks increased their exposure to the real estate sector in 2009 by extending more loans, central bank data showed.
Data released on Friday showed that total exposure of these lenders to the real estate sector reached P393.6 billion as of December, up by 9.4% from the previous year.

Universal and commercial banks accounted for almost three quarters of the total, while thrift lenders accounted for the balance.

“The additional exposure came primarily from real estate loans, which rose [by 9.67% year-on-year] to P383.7 billion,” a statement from the Bangko Sentral ng Pilipinas (BSP) explained.

“Investments in [debt and equity] securities issued by real estate companies also expanded by 1% to P9.9 billion.”

Total real estate exposure as ratio of banks’ total loans excluding loans they made between themselves rose to 14.47% from 13.96% from a year ago.

But Victor J. Asuncion, director for research and consultancy at CB Richard Ellis Philippines, Inc., downplayed the figures, pointing out that while loans to the real estate sector have been growing, the rise has been tempered by other funding sources available to developers.

“Real estate developers, if they can help it, don’t want to borrow from banks anymore... because loans that have floating rates make their borrowing costs more volatile... [Bank loans] are still a part of funding sources, but no longer the primary one,” he said.

Mr. Asuncion added that property companies prefer to fund projects with equity, bonds or from pre-selling projects, and the share of bank loans as a funding source could go down with the introduction of real estate investment trusts or REIT, a company that pools funds and invests these in properties.

Central bank data also showed that real estate loans for construction and development of commercial properties accounted for nearly three-fifths of total real estate loans at P221.1 billion, while the balance was granted for the construction or improvement of residential units by individual borrowers.

Of total real estate loans granted by universal and commercial banks, 73.7% or P203.1 billion were directed to commercial projects, while the balance of P72.6 billion went to residential purposes.

Thrift banks lent out P90 billion to finance the acquisition, improvement or construction of residential units for households, and provided only P18 billion for commercial real estate loans.

Soured real estate loans rose to P23.18 billion from last year’s P22.83 billion, but as percentage of total real estate loans, slid to 6.04% in December from 6.53% a year ago because of a higher growth in loans.

In February, BSP Deputy Governor Diwa C. Guinigundo said monetary authorities may further limit banks’ exposure to the real estate sector from the current 20% of total loans as a way of controlling excessive foreign capital flows that may stoke an asset price bubble.

The deputy governor noted that the central bank had done this before when it limited banks’ exposure to the real estate industry to 20% from 30% after the Asian financial crisis in 1997.

He said that while an asset bubble is unlikely to emerge in the Philippines, this policy tool is available to the BSP in case a slower than expected recovery in developed markets prompts investors to seek higher yields in emerging economies.

Source:  Businessworld Online

Oakridge adds commercial component to business park

CEBU, Philippines - The high demand for office space in Cebu prompted the Oakridge Realty and Development Corporation (ORDC) to go full-blast in developing its three-hectare business park along A.S. Fortuna street, Banilad, in Mandaue City.
Oakridge Business Park, the location of call center giant Tele Tech, is now constructing a commercial component within the park, and eventually develop the entire three hectare property in the next two to three years.
ORDC, used to be a fully-gated business park, is now opening the facility to the community, with the commercial component called OakTree Drive.
“The OakTree Drive will complement the business park facility, offering the support products and services to initially cater the two thousand people working within the park,” said ORDC chief executive officer (CEO) Edmund Liu during the official ground breaking ceremony to start off the OakTree Drive construction.
At present, the park houses 20 tenants including the PEZA (Philippine Economic Zone Authority) registered IT Center currently occupied by Tele Tech operation

in Cebu.
While it is tempting to maximize the three-hectare property with available offices and buildings, Liu said the company is committed to make the Business Park, one of Cebu’s landmarks in “green architecture.”
ORDC, is not limited to attracting BPO-related companies, but also to other industries, as aside from Tele Tech, the business park is the home of other service-oriented firms such as Basic Graphics Inc., Golden ABC Corporation, OVF Law Office, among others.
Liu hopes that the Park will attract diverse industry and service-based companies once it will construct sophisticated and modern office infrastructure, with emphasis on “green” development concept.
“The temptation to add more leasable spaces was there, but we are not losing touch of the park ambiance,” Liu said adding that providing an ample green-space within the property is the development’s priority.
The OakTree Drive will offer a total leasable space of 628 square-meters that will host food chain, coffee shops, and other food and retail businesses.
Although the building occupied by Tele Tech is the only PEZA-registered facility within the park, Liu said the company is open to convert some of the buildings to a cyber-zone registered to give way for potential BPO/IT related companies to take advantage of the fiscal perks offered PEZA.
To date, Oakridge Business Park has a total leasable area of 18,000 square meters, it boasts of an integrated road network, well-maintained building facilities, 24/7 security, a one-megawatt generator, ample parking space and easy access by public transportation.
The company is open to possibilities of developing similar infrastructure within the metropolis in the next few years, after it will maximize the business park’s total leasable space.

Source: The Freeman Cebu

Cebu City now Asia's top outsourcing city - survey

MANILA, Philippines - Cebu City emerged as Asia’s top outsourcing city, overtaking Chinese cities Shanghai and Beijing, a survey from one of the global outsourcing advisory firms showed yesterday.
Data from strategic advisory firm for global outsourcing and investments Tholons ranked Cebu City as the top Asian outsourcing city, followed by Shanghai and Beijing in China. Three other Philippine cities were included in the top 18 Asian outsourcing cities: Pasig, Quezon City and Mandaluyong.
However, the survey showed that Makati City, the country’s leading business district has slipped from the survey as a good BPO destination. Tholons showed that Makati City is no longer in the list of Asian cities included in the Top 50 Global Emerging Outsourcing Countries.
 “It is unfortunate that the country’s acknowledged financial capital is losing out in the BPO boom. The impact is being felt by mostly the middle class residents of Makati who would otherwise be recipients of jobs and business opportunities in BPOs, especially call centers,” Makati Vice Mayor Ernesto Mercado said.
He also noted that allied sectors like construction and real estate have also been affected.
“While we read glowing accounts of investors being bullish about the Philippines as a BPO destination, most of them are locating in other cities in Metro Manila. As a result, residents in these cities get better opportunities for employment and livelihood, as well as skills training and education,” Mercado explained.
He said the city government has not been able to match the investments poured in by neighboring cities in education and infrastructure to suit the demands of BPO firms.
He also said the city government’s business support services have deteriorated, turning off many investors including BPO firms.
 “I have received unflattering reports about the way city hall has been treating our businessmen and potential investors. This has greatly contributed to the drop in the city’s overall competitiveness as a business haven,” Mercado noted.
He said Makati needs to regain its competitive edge, starting with a city government-driven campaign to address weaknesses and problems with key business services.
 “Makati needs to regain its competitive edge. The private sector is looking to the city government to institute programs to attract BPO investments. Sadly, city hall does not seem to realize the urgency of the problem,” Mercado said.

Source: The Philipp;ine Star

Robinsons Land a driving force in Cebu

| Zoom

MANILA, Philippines - The strong domestic retail market continues to paved the way for more property developments and expansion not only in major urban centers like Metro Manila but throughout the country. The expansion is being followed rapidly by BPO and call center companies as they moved to the Next Wave Cities.
Cebu has taken advantage of these developments and has landed itself as the premier destination for BPO and call center companies because of the presence of the correct mix of critical infrastructure, ample and appropriate human resources and lower cost. Cebu was selected as one of the highest-ranking BPO destinations in Asia due to high literacy and labor pool, fiscal incentives and competitiveness.
Robinsons Cybergate Cebu, Robinsons Land Corporation’s latest Cebu project that integrates BPO office spaces in its newest shopping and lifestyle mall development has reinforce the company stature as a driving force in the industry and the main developer of BPO sites that offers a total live-work-play environment.

Liloan to control issuance of development permits for socialized housing projects

CEBU, Philippines - Mayor Vincent Franco "Duke" Frasco yesterday issued an executive order that will regulate the issuance of development permits for socialized housing projects.
"The Municipality of Liloan has been very generous and very lenient in granting many subdivision projects focusing on socialized housing projects such that there were residential houses that had been poorly built, without proper drainage, and narrow access to the main road," Frasco said.
Under the law, all subdivision developers are to provide 20 percent of their subdivision projects for socialized housing projects, pursuant to the Housing and Land Use Regulatory Board (HLURB) implementing rules and regulations.
Section 18 of R.A. 7292 states that a Balanced Housing Development requires every developer of a subdivision project to provide 20 percent of the total land area to a socialized housing project.
Frasco, in an interview with The FREEMAN, said there is need to regulate the socialized housing project in his town by taking the initiative of spearheading the construction of socialized housing projects.
Frasco said barangay Jubay has been identified as a site for a socialized housing program.
Under the law, local government units, in coordination with the National Housing Authority, the Housing and Land Use Regulatory Board, the National Mapping Resource Information Authority, and the Land Management Bureau, are to identify lands for socialized housing and resettlement areas for the immediate and future needs of the underprivileged and homeless in the urban areas, taking into consideration the degree of availability of basic services and facilities, their accessibility and proximity to job sites and other economic opportunities, and the actual number of registered beneficiaries.
The mayor said they have the constitutional mandate to deliver basic services such as health, sanitation, peace and order and among others.
"There is an impending need to exercise police power in promoting sound rural planning to ensure health, public safety and general welfare of the residents of Liloan from the ever growing population brought about by the development of socialized housing projects," Frasco said.
Under the Executive Order, the Office of the Building Official and the Municipal Planning and Development Council shall control and regulate the issuance of development permit for socialized housing projects in Liloan.
The Municipal Planning and Development Council and Office of the Building Official shall recommend to the subdivision developer in the application of its development permit to use the identified land of Liloan at barangay Jubay in the development of its socialized housing requirement, either by contributing cash equivalent to the 20 percent of total project cost or by constructing so much number of houses equivalent to the 20 percent of the total project cost.
Frasco said the Office of the Building Official and Municipal Planning and Development Council shall not issue development permits to subdivision developers if the land is not identified as a site for socialized housing project in Liloan.
"No subdivision developer for socialized housing project shall be given a development permit until such time the socialized housing project of Liloan at barangay Jubay is finished," Frasco said.
Section 4 of the Executive Order states that a subdivision developer is construed to have engaged in developing a socialized housing project if the sizes of the lot area developed are below 100 square meters and the number of lots developed exceeds ten in the subdivision plan.

Source: The Freeman Cebu

Cebu emerges as RP's top tourism destination

CEBU

, Philippines - Cebu has emerged as the number one tourism destination in the Philippines for 2009, the official year-end report of the Department of Tourism (DOT) revealed.
Cebu ‘s total tourist traffic arrival for the year hit 1.61 million, a 1.2 percent increase compared to the figure recorded in the previous year.
Korea remained the top tourist market for Cebu accounting for 29 percent of the total foreign tourists.
The report indicated that Chinese tourists to Cebu grew by a whooping 70 percent as more chartered flights were mounted between Cebu and Shanghai, as to Guangzhou.
A hefty growth in tourists from Kuwait was also recorded as students from the same markets streamed to Cebu for short-education programs.
More than the expansion in international and domestic flight frequencies to Cebu, from major tourist markets and destinations in Central Philippines, accommodations also increased as 804 new rooms opened in 2009.
Based on the report, this include the P3.18 billion Imperial Palace Water Park, Resort and Spa offering 567 rooms, the Citi Park Hotel with 105 room accommodations, the 84 rooms opened by Alpa City Suites, the establishment of Oftana Suites with 24 rooms, and another 24 rooms introduced by Gran Terra Suite.
DOT also attributed Cebu’s dynamic tourism industry in 2009, amid the global tourism slowdown, to the innovative and young entrepreneurs that bravely put their money on providing tourism-support services that prepped up existing tour package in Cebu and nearby destination.
The report mentioned the Island Banca Cruises, which helped provide spice for Cebu’s attractiveness to local and foreign tourists.
Existing heritage tour has also been enhanced to allow tourist to experience a different cultural and historical aspect of Cebu.
Cebu’s long-time partner in tourism—Bohol, also posted a 10.9 percent growth, hitting a total of 313,317 visitors.
Foreign tourists in Bohol, reflected an increase of 18 percent from previous year’s volume while domestic tourists went up by 7.9 percent.
Hong Kong and Chinese tourists to Bohol also recorded a remarkable increase of 467 percent and 99 percent respectively.
Bohol’s vibrant tourism figures for 2009 is attributed to the product diversification being undertake by the local government units (LGUs) and the private sector to stimulate greater tourist traffic and longer stay in Bohol.
Product development innovations were undertaken by the municipal government of Danao in Bohol which brought a new dimension and perspective to adventure tourism. Dubbed as Ecological, Environmental and Educational Adventure Tour (EAT) – Danao, this product which is fully funded by the municipal government offers an extreme and exhilarating challenge with its 45-meter plunge, 1.5-kilometre Suislide, caving, river tubing, rappelling, kayaking and root climbing.
Though with limited promotion capacity (initially only through word-of-mouth), foreign and domestic tourists trooped to this destination to experience a real adventure.
Following Cebu, in the top 10 top destinations in the Philippines is Camarines Sur, Metro Manila, Baguio City, Davao City, Boracay Island, Cagayan de Oro City, Zambales, Bohol, Puerto Princesa City, Camiguin, Cagayan Valley, Negros Oriental and Ilocos Norte.

Surce The Freeman Cebu

Cebu property owners, developers asked to submit more documents to increase city’s tax collections

IN order to improve the city’s tax-collection efforts, the Cebu City Council has passed an ordinance requiring property owners and developers to submit to City Hall more documents pertaining to any horizontal and vertical developments.

The ordinance, approved by the council last week, requires property owners and developers to submit to the city documents like service and supply contracts with their contractors, list of materials and suppliers, and contracts with subcontractors.

The documents will be required in getting building, occupancy and other permits from City Hall.

The author of the ordinance, councilor Nestor Archival, said the measure is two pronged: One is to encourage developers to hire Cebu City-based contractors; and two, for the City Treasurer’s Office to properly assess development as basis for the collection of real-property tax.

“We are creating a system where the Office of the Building Official [OBO] and the city treasurer have the same records,” Archival told the BusinessMirror. “This will ensure that developers and contractors will be honestly declaring their projects and they will be properly taxed.”

Archival said many contractors working on the city are actually from other cities and are just hiring subcontractors here. With the ordinance, the city government will be able to properly impose taxes on the developers who will, in turn, be encouraged to hire city-based contractors.

Underdeclaration of incomes by contractors will be caught when their projects seek for occupancy permits—which will reflect the magnitude of the projects they worked on. Developers cannot also underdeclare their developments as this will be cross-checked with documents from the contractor.

Archival said the ordinance will not create another layer of red tape as the documents required by the OBO and the treasurer must already be ready before projects start and the city is only asking for a copy.

The ordinance is also not meant to impose another layer of tax as the city is only relying on old tax codes and rates. The city treasurer and the OBO are only streamlining their process to be more efficient.

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Source: Business Mirror

Robinsons Land posts double-digit first-quarter profit

The real estate arm of the Gokongwei Group of Companies reported double-digit profit growth in the first quarter of the current fiscal year buoyed by strong earnings from the flagship mall division.

In a filing to the local stock exchange Robinsons Land Corp. (RLC) said net income from October to December 2009 rose 28 percent to P869.2 million. This, on the back of combined revenues (which includes hotel revenues) which added 10 percent to P2.49 billion.

The growth was driven by the company’s 41-percent hike in the earnings of the commercial centers division, which accounts for over half of the company’s gross revenues or P1.4 billion.

“Significant rental increment was contributed by the newly opened malls in Dumaguete, Ilocos Norte, General Santos, Tacloban and Davao. Metro Manila malls led by Robinsons Galleria Ortigas also contributed to the growth while other provincial malls also posted decent growth in rental revenues,” said RLC. 

This improved profit picture was also supported by interest income and movie revenues which amounted to P100 million and P164 million for the period, respectively. Without these, the segment still posted a 16-percent growth.

The high-rise and residential building division, which accounts for 22 percent or P603 million of revenues, saw a decline of 14 percent due to lower completion of several projects.

However, significant revenues were realized from recent projects such as East of Galleria, Gateway Garden Heights, McKinley Park Residences, The Fort Residences and Woodsville Viverde.

The office space and hotels segments each contributed about a tenth of total revenues at P264.8 million and P289.2 million, respectively. Office rentals were up 5 percent due to rental charges from Cybergate Centers 2 and 3. Lease income is derived from six office buildings, Galleria Corporate Center, Robinsons Equitable Tower, Robinsons Summit Center and Towers 1, 2 and 3 at Robinsons Cybergate Center.

Meanwhile, hotel revenues were higher by 3 percent due to the opening of Summit Ridge Tagaytay Hotel. The other existing hotels—Crowne Plaza Galleria Manila, Holiday Inn Galleria Manila and Cebu Midtown Hotel—posted occupancy rates of 76 percent, 79 percent and 50 percent, respectively.

The housing and land development division reported realized revenues amounting to P136.1 million, from P137.2 million during the same period last year, or a slight decline of 1 percent. This was brought about by lower percentage completion of various ongoing projects.

Shares of Robinsons Land added 2.17 percent to end Friday’s session at P11.75 each.

Source: The Business Mirror

BY MID 2010: Newly opened I.T. bldg expects 100% occupancy

CEBU, Philippines - TG Universal (TGU), one of the newest buildings that opened at the Cebu Asiatown IT Park, expects to be 100 percent occupied by middle of this year.
Shortly after it soft opened last year, TGU attracted 20 occupants, that filled in the 16-story structure developed by Business Ventures Corporation.
The company’s chief operating officer Charles Ong said that aside from those who expressed interest to locate at the building, the existing companies now occupying office spaces in the building are also expanding.
To date, big names in the IT sector have made their office-base at TGU building, these include; IBM Global Delivery Center, Bombardier Transportation

(Shared Services) Philippines Inc., Xlibris Philippines Inc., Windward Software Philippines Inc., Playtech—Bingames Limited, eBusiness BPO Inc., Next2Web, Taylor Science and Technology Philippines Inc., among others.
According to Ong, TGU which is the largest building in terms of gross floor area within the cyberpark, is expected to be fully occupied by the middle of this year.;
Business Ventures Corporation, which is also the developer of Sykes building in Mabolo, spent more than P700 million for the construction of the state-of-the-art IT building, to take advantage of the strong demand for BPO spaces in Cebu.
Ong, whose family core business is into real estate (apartment rentals, warehousing), said that the family decided to diversify its business to building development targeting the BPO investors because of the good prospect for this kind of development.
For this reason, the company has decided to focus on investing its money on the real estate trade in Cebu, with the establishment of a new brand, called “Innoland” which allocates close to a billion pesos capital expenditure (capex) for this year, to build three more sophisticated buildings within the metropolis.
Ong described one of its upcoming projects as an internationally-accredited “Green Building” that will put Cebu in another dimension of attracting investors that are looking for environment friendly structures.
The first project that will be started by the company in the next couple of months will be located in a 3,000 square-meter lot at the Asia Town IT Park. However, the group has not divulged the full description of the nature of project.
Innoland has done extensive research and feasibility study for Cebu real estate sector. “The market is different now—sophisticated, tech-savvy, well informed, and conscious of the environment,” Ong said.
Thus, the company’s line of projects will incorporate the different and sophisticated needs of today’s market.

Source: The Freeman Cebu