Developer invests P1.5B

Share

Katlene O Cacho

www.sunstar.com.ph

27 January 2013

http://www.sunstar.com.ph/cebu/business/2013/01/27/developer-invests-p15b-265148

A REAL estate player is allocating some P1.5 billion for the construction of 1,500 houses in the Visayas and Mindanao this year.

Of that investment, the bulk will be set aside for three projects in Cebu with a total of 800 units. The remaining 700 units will be distributed in Cagayan de Oro, Davao and Iligan cities.

According to Richard Lim, president and chief executive officer of Johndorf Ventures Corp., the capital expenditure (capex) share for Cebu is the biggest so far since the company’s entry in 2004.

“Cebu is becoming progressive. It is one of the fastest growing cities in the country.

In fact, its growing population and bullish property market have attracted big players to expand their projects here,” Lim said. Their presence in Cebu is a manifestation of how optimistic and confident local players are about Cebu and the booming real estate industry.

A total of nine hectares of land will be developed into affordable subdivisions under the Johndorf and Prohomes brands. Two of these projects will be located in Mactan and one in Carcar, Cebu.

Different segments

Meanwhile, the Mindanao projects will have a total of 35 hectares of land to be developed into socialized and mid-range housing projects.

Late last year, Johndorf announced it has taken full control of the management of Prohomes Development Inc., a former subsidiary of the company. Prohomes, Lim said, will maintain its role in developing affordable residential units. Johndorf will focus on building residential units for the middle-income market.

Lim said they have already started building one of the Mactan projects. Construction of the two remaining projects will commence, the company hopes, in the third or fourth quarter this year.

Lim stressed that despite the presence of big and new players doubling efforts in serving the housing requirements, there are segments that are not fully served. He believes demand is still present in all segments, particularly in the low and middle-income market, spurred by Cebu’s growing population and thriving businesses.

Cebu’s three-million population is one factor that developers consider in terms of putting up projects, he said.

CBRE Philippines noted that the affordability of housing units brought about by the intense competition in the market, low interest rates and easy financing schemes offered by banks have led the country to experience “democratization” in the housing sector, from a nation of renters to nation of owners.

Condo ventures

Lim also announced that his company is building up its land banking activities in Cebu in preparation for the continued demand in the property market.

“We are starting to look outside Cebu City because nearby cities and the countryside are showing progress. The developments here are gearing toward the south of Cebu,” said Lim.

Aside from building horizontal projects, last year Johndorf also ventured into condominium development through 148 Residences, the studio-type and dorm-type project located on Pelaez St. near University of San Carlos.

Lim said the company has no plans yet of building another condo project but he is not closing doors on building another one, given the huge demand for condos.

Johndorf has already built more than 10,000 homes in Visayas and Mindanao since its establishment in 1986.

Adchemy

Yesterday , we concluded the handover of our unit located on the 27/F of Philamlife Tower. It was a relief that we finally have access and can proceed with our minor refurbishments. Finally an official announcement can be given to our Engineers who really deserve a better facility that they can call their own.

Much of this good news and feelings of self-achievements of getting this unit would not be possible without your help and that of you most gallant employees, Mr. Francis Bautista and Mr. Philipp Llave.

Initially our head office in San Francisco was not in favor to get our own unit and moving out of Regus because of the initial capital outlay it represented. Eventually we were granted approval to start the search on the condition that it would be a tail-end of an existing lease, with no capital outlay needed for fit-out, cabling and furniture on our part. Knowing what the real estate market in the Philippines is like and our prior experience in finding office space, the situation proved very challenging, if not frustrating for us.

But with their professionalism, persistence and unique knowledge of the market, Francis and Philipp were able to find us a unit that fit the specifications of our head and negotiate a deal that was beneficial to us. To sweeten the deal further, the space they provided is just a few floors away from our existing office thus making it an easier transition for us.

Bottom line, what I am trying to say is “THANK YOU” to both most especially to Francis who’s been very instrumental on all my needs in terms of office spaces.

Keep up the good work guys!

For inquiries, fill up the form below.

Name

Email Address

Subject

Message

For inquiries, fill up the form below.

Name

Email Address

Subject

Message

For inquiries, fill up the form below.

Name

Email Address

Subject

Message

We would like to hear from you on how we can serve you better. Please fill out the form below and we will get back to you as soon as we can.

Name

Email Address

Subject

Message

Captcha

CAPTCHA code

Share