Ayala subsidiary bullish on Cebu property market
Author: Irene R. Sino Cruz
Source: Cebu Daily News
AYALA Land Inc. subsidiary Cebu Holdings Inc. would be implementing a major residential project next year to show its optimism over the firm’s prospects in the real estate sector.
“We are seeing the potential (of the real estate sector). We are seeing the demand. That’s why we’re investing,” Cebu Holdings president Rene Almendras said.
Except for a few real estate projects, the real estate industry has been on a slump for the past few years.
The industry slowdown started when the currency crisis hit the Philippines and the rests of Asia.
With the slump, most of the real estate projects were either suspended or even cancelled as demand dropped to practically zero.
Recently though, some companies have started investing in real estate - both on residential and commercial projects.
According to Almendras, the project, a residential development, is a joint venture with an old Cebuano family.
Apart from saying that the project would be a unique one and another first for Cebu, he refused to divulge any other details.
Meanwhile, the company is also looking at the opportunities available in the Cebu South Reclamation Project (SRP), he said.
“We’re studying the market. We’re looking at opportunities,” he said.
Almendras said the company already had discussions with Cebu City government but these were still in the initial stages.
The Cebu City government plans to bid out blocks of SRP to real estate developers, both local and foreign.
The scheme would save the city development costs since it would only be funding the construction of major roads and leave the rest of the road network to the different developers.
The SRP would be divided into blocks for commercial, industrial and other purposes.
He said the company is studying what possible developments could be done at the SRP.
“We’re looking for tourism opportunities both at SRP and outside areas,” he said.
On the other hand, the company has suspended selling its Ayala Heights since it is reengineering the project, he said.
Almendras also disclosed that Ayala Land has committed to build one public school building in Cebu City.
The school would be built at barangay Sibugay-Pong-ol, a mountain barangay in Cebu City.
It forms part of the company’s commitment to build three school buildings in celebration of its 15th anniversary, he said.
In the next 12 months, he said, Ayala Land would be holding various events in relation to its anniversary.