Developer invests P1.5B

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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.

Energizer Philippines

Dear Rick,

I’d like to thank you and your team – Joey Radovan and Morgan Mcgilvray in particular, for the assistance given to us during our recent Office Relocation process.
They were very well organized and helpful:

– Our site visits were conducted in a very timely manner and my management committee received clear and useful guidance on various aspects related to site selection –from what to look for in terms of building services, location, etc., as well as guidance on the discussion etiquette they should observe in order to safeguard the confidentiality of issues that could be valuable at the time of final selection and negotiation of the site.

– Both assisted us in the selection of the Office Design and Construction supplier; they were present in all the presentations and gave us objective feedback and opinions that helped my team feel more educated and confident about the decisions they were making.

– We also received guidance with various topics that arouse secondary to our office relocation, such as off-site document storage options just to name one example.

– They continued their liaison and support with the landlord and constructors throughout the process of negotiating and signing the lease, as well as during a very tight construction and relocation schedule during which a lot little (important) issues arise that must be solved swiftly in order to keep the deadlines.

The above is by no means a comprehensive list, and I’d like to extend our thanks to your team who supported Joey and Morgan in giving us such excellent service.

We are now pretty much settled in without any business interruption and with our colleagues quite happy about our new office and location; do come to visit us when you get a chance!

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