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October 6, 2017

ALI to develop Mindanao ind’l estate

NEWS
Property giant Ayala Land Inc. (ALI) is building its first industrial estate outside Luzon as part of a mixed-use complex that will rise on its 526-hectare estate in Laguindingan, Misamis Oriental, deemed as the new gateway to Northern Mindanao. “There’s a resurgence in manufacturing,” ALI president Bernard Vincent Dy said in a recent interview with the Inquirer. While interest among foreign industrial locators in earlier years was mostly in Luzon due to its proximity to the port of Manila, Dy suggested that new locations were now emerging as good industrial hubs. In the case of Laguindingan, Dy noted that ALI had an existing landbank while the presence of the Laguindingan airport was very important. Of Laguindingan Special Economic Zone’s 526 hectares, about 300 hectares are up for initial development. The application as a special ecozone had been approved by the Philippine Economic Zone Authority and endorsed to Malacañang last May.
Source: Philippine Daily Inquirer, 02 Oct 2017 (Mon)
 
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RESEARCH VIEW
The Philippines continues to attract more investments with manufacturing being the major recipient of fresh equity inflows. This benefits the Cavite-Laguna-Batangas industrial corridor, the Philippines’ primary industrial hub. But firms are becoming more aggressive in developing industrial space outside of the Cavite-Laguna-Batangas area to respond to the growing demand brought about by the top conglomerates' foray into manufacturing and the planned construction of major infrastructure projects outside of the country’s capital which should raise the viability of emerging industrial locations in Northern and Central Luzon, Central Visayas, and Northern Mindanao. The country’s manufacturing prospects look strong as diversified conglomerate San Miguel Corporation (SMC) is exploring the possibility of venturing into electronics manufacturing, encouraged by the surging demand for smartphones and other electronic devices. The Taipei-headquartered large electronics enterprise New Kinpo Group, which currently operates three facilities in Batangas, has expressed an intention to expand operations and double its workforce to more than 14,000 over the next few years. Meanwhile, the luxury carmaker BMW is looking at sourcing more auto parts from the Philippines, eyeing the country as a regional auto parts hub


SMDC unveils condo project in Cavite

NEWS
PROPERTY developer SM Development Corporation (SMDC) on Tuesday launched the three-tower Green 2 Residences project in Dasmariñas, Cavite as the latest addition to its portfolio of “university town” developments. The project is located near three of Dasmarinas’ most populous universities—De La Salle University Dasmariñas, De La Salle Health Sciences Institute, and Emilio Aguinaldo College Cavite. SMDC expects the 1.6-hectare Green 2 Residences to be “much larger” than the preceding Green Residences along Taft Avenue, Manila, which sold at an average of P1.9 million per unit in 2011, and is now valued on average at P2.7 million per unit. Green 2 Residences will feature WiFi-ready study areas, a gym, lap pool, multi-purpose lawns, a function room, and lounges, and will house a retail strip for the convenience of its student tenants. The first tower of the development will have 19 storeys.
Source: The Manila Times, 29 Sep 2017 (Fri)
 
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RESEARCH VIEW

Both national and local developers have been active in addressing the rising demand for residential projects in major urban areas outside of Metro Manila.  Among the developers that launched residential projects in 2Q 2017 are SMDC, Palm Beach Realty, Vista Land, AboitizLand, Megaworld, Grand Land, Paramount Property, and Landco.  The projects were launched in provincial areas that are major sources of migrant workers including Pampanga, Cavite, Laguna, Batangas, Cebu, and Iloilo. Colliers believes that a significant part of the USD31 billion in remittances projected to be sent in by OFWs this year will be set aside for Filipinos’ housing requirements. A survey conducted by the National Economic and Development Authority (NEDA) reveals that nearly two-thirds of Filipinos consider owning a medium-sized home as one of their key aspirations.


Ortigas enters hospitality business

NEWS
Property developer Ortigas & Co. has entered the hospitality business with the launch of The Cirque, a 55-unit serviced residences business carved out of its master-planned mixed-use community Circulo Verde that straddles Quezon City and Pasig.
Ortigas has teamed up with Hospitality Innovators Inc. (HII), a 15-year-old local hotel and property management company, to manage these serviced residences, offering one-bedroom (46 to 51 square meters) and two-bedroom units (67 to 69 square meters).
As an introductory offering, serviced apartments at The Cirque are priced starting at P4,800 per night and up to P7,000 per night for the two-bedroom units. But the most popular units are the one-bedroom lofts currently priced at P5,800 per night. Longer-term occupancy of a one-bedroom unit is estimated to cost between P45,000 and P50,000 or lower for corporate accounts. “It’s a key part of what Circulo Verde is putting together to sort of provide a more compete package to customers in this area,” Ortigas senior vice president and chief operating officer Thomas Mirasol said in a press briefing on Friday.
Source: Philippine Daily Inquirer, 29 Sep 2017 (Fri)
 
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RESEARCH VIEW

The country’s travel and tourism sector remains robust and this is encouraging developers and operators to expand presence in the hospitality sector. A total of 2.88 million international tourists visited the Philippines in the first five months of 2017. The figure is 14% higher than total arrivals recorded in the same period of 2016. An estimated 60% of total visitors pass through Metro Manila. We project a 10% growth in international arrivals in 2017 as we see the likely slowdown in the historically slack 3Q being offset by the traditionally strong 4Q driven by foreigners and Overseas Filipino Workers (OFWs) who spend holidays in the Philippines. The thriving domestic tourism, fuelled by millennial spending and the growing popularity of "staycations", helps sustain hotel occupancy in Metro Manila. This compels developers to build more accommodation facilities across the country. Given the projected rise in both foreign and domestic tourists, Colliers expects hotel occupancy in Metro Manila to hover between 65% and 70% over the next 12 months. Occupancy rates will be between 60%-65% from 2019 to 2020 due to projected new completions.


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