By Nancy R. Cudis

Published in the Sun.Star Cebu newspaper on December 12, 2009.

AS SOON as the implementing rules are out next year, the Professional Regulation Commission (PRC) will regulate and supervise the real estate services instead of the Department of Trade and Industry (DTI).

Real estate practitioners have yet to come up with the guidelines to carry out the Real Estate Service Act of the Philippines (Resa).

The PRC began last month gathering nominations from the real estate industry on who will form the Professional Regulatory Board of Real Estate Service that will draft the implementing rules and regulations of the Resa.

Emily Amie Cabillada, president of the Philippine Association of Realtors Board Inc.-Cebu Realtors Board Inc. (Pareb-Cereb), said the board will be created this month or early next year.

President Arroyo signed Resa into law last June 29. The law, which is designed to develop the real estate industry through proper and effective regulation and supervision, took effect on July 30.

Cabillada said that 90 days after implementation of the Resa law, the DTI will turn over its responsibility of real estate services to the PRC.

But the PRC cannot carry out these functions because the Professional Regulatory Board of Real Estate Service has yet to be created.

Although the DTI and PRC reported to have signed a memorandum of agreement to address this matter, the details of the agreement have not yet been disclosed, said DTI 7 regulatory division chief Josh Carol Ventura.

While waiting for an order, the DTI will help out the PRC and the real estate industry, especially during the turnover of functions, through its trade regulation and consumer protection office, she said.

Cabillada said the DTI will still assume some functions while the board is being created.

According to the Resa law or Republic Act 9646, the Professional Regulatory Board of Real Estate Service will be composed of a chairperson and four members who will be appointed by the President from the list of names recommended by the PRC.

These recommendations are based on the list of nominees submitted by the accredited and integrated professional organization of real estate practitioners.

The licenses of real estate consultant, appraisers, brokers and salespersons cannot be renewed until the board and the IRR are created.

There is, however, a provision in the Resa law that gives them a grace period of two years while the board is being formed, Cabillada said.

Also, the board is to conduct licensure tests for the practice of the real estate service profession.

(The Philippine Star) Updated December 27, 2009 12:00 AM

MANILA, Philippines - Fresh from meeting 2009 head on in the face of global economic recession, the countryï¿½s most trusted real estate company, Ayala Land, Inc. (ALI) goes full throttle next year with a more aggressive posture.

Ayala Land takes on 2010 with the most number of new projects to be launched within a single year ever. Antonino T. Aquino, Ayala Land president, announces new initiatives on the establishment of multiple growth centers across the Philippines to bring to more areas the well-recognized expertise of Ayala Land in enhancing land, enriching lives. He says, ï¿½Weï¿½ll have the busiest year ever as weï¿½re expanding in geography, in the products that we offer including new business lines and in the market segments that we cater to. There will be a dynamic interplay of our projects and where we used to be focused only on the traditional segments, now weï¿½ll be expanding for the benefit of our customers.ï¿½

There is no landscape too small or too large to change

ï¿½We are thinking of more than a dozen different locations, starting off in the North with Baguio, Angeles in Pampanga, Subic and in five locations in Southern Philippines namely Cebu, Cagayan de Oro, Davao, Iloilo and Bacolod. We are making sure that we are coming around with product offerings that are best suited for the market and which will show the best practices that Ayala Land is known for,ï¿½ he states, as he proceeds to give an overview of activities to take place.

In Baguio next year, the retail area and the BPO complex will begin development in Camp John Hay, allowing customers to enjoy the natural beauty of Baguio. Meanwhile in Subic, a bustling development will arise with a mix of retail, BPO and residential components.

In Pampanga, the company relishes the market acceptance of the Marquee mall in levels beyond expectations।ï¿½In the pipeline for the area is a very nice residential development right across the mall. It will be a mid-rise project with a Serendra feel,ï¿½ enthuses Aquino.

With the successful expansion this year of Ayala Center Cebu with The Terraces, the company is set to have its first foray with Alveo and Avida offerings in the first quarter in Cebu.

Meanwhile in Davao, where Ayala Land jumpstarted its entry with the lifestyle mall, Abreeza Mall, new residential developments are slated to be launched coupled with a BPO complementary project, states Aquino. Similar mixed-use developments are also planned for in Cagayan de Oro.

Northpoint, a project of Ayala Land Premier in Bacolod, will host a new commercial development along the main road fronting it, making the area a multiple growth center. Aquino points out, ï¿½The whole idea behind our multiple growth center strategy is to highlight our mixed-use experience as a major differentiator of our organization. Weï¿½re known for how we masterplan things and how our projects develop into excellent growth centers, bringing in a new lifestyle.ï¿½ This will also be realized in the mixed-use project to be developed in Iloilo.

In the Greater Manila Area, where Ayala Land focused largely in Makati and in the South, year 2010 sees the company pushing thru with plans for development covering the North Triangle area in Quezon City. Ayala Land again manifests its expertise in master planning, envisioning for the city a thriving business district that Quezon City still needs to date. ï¿½We want this to happen in a shorter time as we know there are business locators and partners who would like to see the priming of the area accomplished soonest,ï¿½ Aquino declares.

A piece of land is never just a piece of land

In line with bringing in a new lifestyle, first off to be introduced as a new product in the retail segment will be the neighborhood and community centers. These will be quaint shops and retail establishments that will support residential and BPO developments. Ayala Land is also exploring hotels and tourism-related products to expand its portfolio.

Expansion projects and the opening of new phases of other existing developments are also set to go on full swing.

Ayala Landï¿½s continued redevelopment of Ayala Center is brought to another exciting stage with the opening of the Ayala Triangle Gardens. According to Aquino, this will be the starting point for ramping up the Makati Central Business District with projects that will include upgrading the Glorietta retail center as well as launching a high-end residential play for Ayala Land Premier in that area, very much like how The Residences at Greenbelt (TRAG) is just a walk away from the mall. Other new residential offerings by Alveo will be in the office enclaves of Salcedo and Legaspi Villages. ï¿½These are excellent follow-throughs for the continued upscaling of the areas in Makati,ï¿½ he describes.

The Bonifacio Global City (BGC), more popularly recognized as the Home of Passionate Minds, will witness Bonifacio High Streetï¿½s expansion to complete its 1-kilometer development plan to end closer to the Mind Museum, which will be the best science museum in the country. Also known as the ï¿½live, work, and playï¿½ zone, the city will likewise witness next year the addition of another building offering a total of 31,000 sqms of BPO space along with the launch of Avida Towers BGC and a new phase of Two Serendra, The Meranti.

Alabang will in turn follow thru with enhancements at the Alabang Town Center with an additional retail complex featuring department stores and supermarkets. Aquino added that Avida Towers Alabang will also be launched.

Further South in Laguna, the countryï¿½s first eco-community and now regarded as the nationï¿½s sustainability capital in Ayala Landï¿½s portfolio, NUVALI, earlier enjoyed highly successful take-up for its Ayala Land Premier (ALP) offerings: Abrio, Montecito and recently Santierra.

The sterling record provided fresh proof of Ayala Landï¿½s ability to offer unique and highly-valued propositions to the high-end market. Where Ayala Westgrove Heights and Ayala Greenfield Estates further South fulfilled desires for lakeside sceneries, rolling hills and orchard-like environments, these new ALP offerings in NUVALI addresses particular aspirations for sustainable lifestyles.

Alveo will also be launching a project in NUVALI in the 2nd quarter of next year, while Avida will be expanding with Avida Settings Phase 4 and introducing new projects, Avida Village NUVALI and Avida Estates NUVALI.

Aquino also announced the introduction of more retail elements in NUVALI alongside the Sta.Rosa-Tagaytay road, with the construction of a new supermarket that enhances the Solenad retail area which has already scored distinct success in its provision of dining, shopping and convenience retail in the area.

ï¿½We expect NUVALIï¿½s overall retail success and launch of residential developments to add to the attractions of One Evotech as a premium space for BPO locators,ï¿½ states Aquino as he reveals the addition of the second BPO building next year.

Avida will be very busy launching some new phases in its existing developments, like Tower 5 for Avida Towers New Manila, Tower 5 for Avida Towers San Lazaro, and Tower 7 in Avida Towers Sucat, all to be launched in the 1st quarter and Avida Settings Phase 2 in Cavite in the 2nd quarter.

Cebuï¿½s Amara and Alegria Hills in Cagayan De Oro will likewise see the addition of new phases.

A testament to enriching lives for more people

To top if all off, Ayala Land will be coming up with a breakthrough by launching projects in 2010 entering a new market segment. Aquino announces, ï¿½As part of being socially-responsible and contributing to nation-building, more will be benefiting from Ayala Landï¿½s quality and level of service through ï¿½Amaiaï¿½. This is categorized as the economic housing line of Avida, ushering Ayala Landï¿½s entry into a wider marketï¿½the very people who need us more. Amaia will offer house and lot packages with prices ranging from P700,000 to P1.3 million, to provide them with a high-quality product for their hard-earned money.ï¿½ Amaia presents its maiden offerings in Laguna early next year.

ï¿½As we continue to finetune our products, our core competency on masterplanning is our distinct advantage and we want more and more people to benefit from this. This is part of our key thrust for the years to come, corporate social responsibility. This will be more integrated into Ayala Landï¿½s business models, not as dole-outs but being more powerful as a driver for economic growth.ï¿½ declares Aquino.

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Posted on 09:27 PM, December 27, 2009 [ BusinessWorld Online ]

Measure simplifying titling of residential lands awaiting Arroyoï¿½s OK for enactment

CONGRESS HAS ratified a measure providing a less-tedious and cheaper option to titling residential lands, and is awaiting the Presidentï¿½s signature for enactment into law.

The reconciled version of House Bill 5618 and Senate Bill 3429 or the proposed "Act Authorizing the Issuance of Free Patents to Residential Lands" ratified by the Senate and House of Representatives before Congress went on Christmas break last Dec. 19, allows the Land Management Bureau (LMB) under the Department of Environment and Natural Resources to issue free patents to residential lands, expanding its authority from agricultural lands.

The patent is then submitted to the Registry of Deeds for the issuance of a title.

The proposed law allows applications for titling if the tenant has occupied the property for 10 years from the current 30 years under the Public Land Act.

The titleï¿½s coverage should not exceed 200 square meters (m2) in highly urbanized cities; 500 m2 in other cities; 750 m2 in first and second class municipalities; and 1,000 m2 in all other municipalities.

The LMB currently issues patents for alienable and disposable lands only for agricultural purposes. It has estimated that the law would cover 7.8 million hectares of residential lands nationwide, mostly in Cebu, Davao and Baguio cities.

Residential patents could either be coursed through the Bureau of Internal Revenue (BIR) or through the courts with the accompanying fees. Under the proposed law, residential patents can be issued for free with certain documentary requirements.

Explaining the BIR process, Jaime V. Santiago, assistant commissioner and officer-in-charge of the taxpayer assistance service, said the BIR issues a certificate that would authorize the titling provided the following are submitted: a deed of sale or a will and testament to validate rights to the land, tax declarations, and pay a capital gains tax or 6% of the fair market value of the property and a documentary stamp tax of 1.5% of the fair market value.

Allan V. Barcena, LMB assistant director and head of policy development, said in an interview that the new law would only require the submission of tax declarations and affidavits from barangay officials and two witnesses other than their relatives which state that the applicant has stayed in the area for 10 years.

In cases of two or more claimants, Mr. Barcena said that the LMB central office would resolve the dispute but its decision is appealable in court.

He said they expected to have finished drafting the billï¿½s implementing rules and regulations by March.

"We are targeting that by January, the Office of the President has already signed this and then we can start implementing the guidelines. We expect to finish within three months," he said in a telephone interview.

"We expect that there would be a surge of application for patent [of residential land] because this soon to be made law is providing an easier way to get land titles. Right now itï¿½s not attractive to go through this process because applicants would either pay to the BIR or go to the courts. With this [bill], many would be encouraged to get land titles."

Mr. Barcena said it may take the same period to issue a residential patent compared to the agriculture patent -- six months, but noted they may hire and train new personnel since it would be the first time that the LMB would handle residential patents.

Meanwhile, Suzanne L. Felix, executive director of the Chamber of Thrift Banks, said the new law would encourage economic activity.

"Land titles can be used as collateral to borrow from banks so if the land titling process is hastened, banks would also benefit because there would be added market activity with the increase in land title holders," she said in a separate telephone interview.

Claro G. Cordero, Jr., head of research and consultancy at Jones Lang LaSalle Leechiu said conflicts may arise from illegal settlers.

"On the negative side, there would arise a problem of determining which lands are eligible to this [measure]. There are lots of government lands that have yet to be accounted for like residential areas which are on major highway roads that are sometimes illegally occupied," he said in another telephone interview.

The measure amends Commonwealth Act 141 or the Public Land Act. House committee on special land use and Zamboanga del Sur Rep. Antonio H. Cerilles (2nd district) said that the bill will be enrolled in Malacaï¿½ang before the month ends. -- JFSV

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SM signs P2.7B deal with Cebu City

CEBU CITY ï¿½ Cebu City Hall earned its first billion from the South Road Properties (SRP) Thursday after it closed the sale of a 30-hectare lot to SM Prime Holdings Inc. worth P2.7 billion, three years after the negotiations started.

By 2012, the SRP will be home to the biggest shopping mall in the Visayas and Mindanao with a gross floor area of 25 hectares, SM Prime Holdings President Hans T. Sy said Thursday.

SM Prime will invest at least P20 billion for a mixed-use development project facing the sea, which will include a convention center, hotels, residential condominiums, a school and a hospital.

After they signed the deed of conditional sale Thursday afternoon, Sy turned over to Mayor Tomas Osmeï¿½a a P406-million check to complete its down payment of P677.4 million. This represents 25 percent of the contract price of P2,709,712,000.

The P270.9-million bid bond paid earlier will form part of the down payment.

This is Cebu City Hallï¿½s second sale at the SRP, after its deal with Filinvest Land Inc. (FLI).

SM Prime will make four quarterly payments this year that will amount to P433 million so that by the end of 2010, SM Prime will have paid the City a total of P1.11 billion.

ï¿½This is the start for us. We will roll up our sleeves and we will definitely deliver a project that all Cebuanos will be proud of. This is really a project that we envisioned that will attract not only Cebuanos but also those from Visayas and Mindanao and even from Luzon,ï¿½ Sy said.

With the P677-million down payment, the City has so far earned P1.04 billion from the SRP, which includes Filinvestï¿½s P348-million down payment last year and Bigfoot Propertiesï¿½ lease payment of P15.2 million for the past two years.

Osmeï¿½a said the Cityï¿½s income from SM Prime and the Cityï¿½s sale and joint venture contracts with FLI will be enough to cover the loan payments for the SRP until 2025, so the City does not need to sell any more properties after the SM deal.

ï¿½It is anticipated that the City will not have to sell additional property to meet our debt service because with the installments coming in from SM and Filinvest and the other revenues we will be generating from the joint venture, I think it will be more or less enough to meet the debt service for the entire SRP,ï¿½ he said in a speech after the turnover of the check.

For this year alone, the City stands to earn P1.11 billion from SM Prime, P298 million from FLI and P7.7 million from Bigfoot, which will be more than enough to cover its loan obligation of P693.3 million to Land Bank of the Philippines for 2010.

As specified in the contract, SM Prime will pay the balance of P2,032,284,000 over a period of six years in quarterly installments, with a five percent annual interest.

Vice Mayor Michael Rama, city councilors and department heads witnessed the signing of the deed of conditional sale at SM City Cebu conference hall yesterday afternoon.

During the event, Sy presented Thursday their plans for the property and said they will break ground later this year, with construction work continuing in the next eight years.

The first structure to rise will be the shopping mall with a gross floor area of 250,000 square meters, which he said would be similar to the Mall of Asia in Pasay City.

The construction of a hotel with a minimum floor area of 60,000 square meters and the convention center with a minimum floor area of 20,000 square meters will follow.

After five years, Sy said they may consider starting the residential condominiums, the school and hospital.

SM Prime vice president Ronald Tumao said that what attracted them to the SRP is its location, being the only property in the city with ï¿½a real sea view.ï¿½

The signing of the contract came after the City Council called for a special session Thursday morning so they can approve the resolution authorizing the mayor to sign the documents.

After making minor amendments in the contract, the council approved the resolution, saying the sale of the property went through ï¿½a transparent competitive selection process through a Swiss challenge.ï¿½

Since the components of SM Primeï¿½s development were not included in the contract, the council agreed to make the documents of SMï¿½s unsolicited proposal an integral part of the sale contract.

Of the 240-hectare area of reclaimed land in the SRP, only around 150 hectares are left, which includes the roads and other service areas.

The City sold a 10.6-hectare lot to FLI last year and entered into a joint venture agreement to develop another 40 hectares.

A three-hectare area is being leased to Bigfoot for 20 years.

Properties were also donated to the University of the Philippines (5.17 hectares), the Department of Public Works and Highways (4.8 hectares) and the Department of Health (2 hectares). (Linette C. Ramos of Sun.Star Cebu)

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Pag-IBIG readies more loans for housing

Posted on 11:50 PM, February 24, 2010 [ BusinessWorld Online ]

THE HOME Development Mutual Fund, commonly called the Pag-IBIG Fund, has hiked its allocation for housing loans by 10.5% this year, as it expects more people to tap the fund for their housing needs.

Pag-IBIG Chief Executive Officer Jaime A. Fabiana told reporters on Tuesday that P50.5 billion is available for housing loans this year, up from the P45.7 billion extended to members in 2009.

ï¿½We expect an increase in housing loans because of the affordability of the loans and reduced interest rates,ï¿½ he said in a telephone interview yesterday.

Interest rates of Pag-IBIG housing loans were slashed in April last year with the aim of making the loan program more affordable to members.

Interest rates have been reduced from 10.5% to 8.5% per year for loans of over P750,000 up to P1 million, and to 9.5% per year for loans of over P1 million up to P1.25 million.

ï¿½Despite the economic slowdown last year, housing loans increased,ï¿½ Mr. Fabiana said.

Pag-IBIG housing loans grew by 34% last year from P34 billion in 2008.

ï¿½We think housing loans will continue to grow this year,ï¿½ Mr. Fabiana added.

The Pag-IBIG Fund was formed in 1978 through a presidential decree.

It is mandated to provide affordable housing finance to its members.

The Pag-IBIG Fund will be issuing P12 billion worth of five-year bonds next month, the proceeds of which would be used to refinance its P7 billion worth of maturing obligations as well as to support its lending operations. -- Louella D. Desiderio

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Innoland kicks off flagship project at Asiatown IT Park

By Ehda M. Dagooc (The Freeman) Updated April 24, 2010 12:00 AM/ http://www.philstar .com/Article. aspx?articleId= 569262&publicationSubCateg oryId=108

CEBU, Philippines - Newly established real estate company Innoland Development Corporation officially kicked off its P1 billion-flagship project development at Asiatown IT Park in a groundbreaking ceremony that marks the start of its first green hybrid building in Cebu.

Dubbed as “The Calyx Center”, the 26-story building will offer over 200 residential and commercial condominium units intended for the growing market of mobile professionals and technology workers in Cebu.

Innoland chief operating officer Charles Ong said The Calyx Center is the first of three developments that are being lined up by the company for the next few years.

Ong said the company will focus more on residential projects to take advantage of Cebu’s economic vitality that has attracted local and international residential property buyers.

The organically designed, green building located on a 2,953 square-meters premium lot beside Asiatown’s “The Walk,” will be a community within a bigger community with retail, office and residential components in one building, Ong said.

Ong said the establishment of the green building is seen to give boost to Cebu’s strong commitment to the environment.

The residential tower’s units will be on the 11th floor, a story above the transition level at the 10th floor will have two gardens. The bigger one is designed as an active zone with a lap and wading pool, a gym, shower rooms, a Laundromat, two function room for parties and business meetings exclusively for residents.

The smaller garden facing northeast will accommodate yoga, meditation, reading, and quiet conversations in an outdoor setting. Adjoining is a Lounge with a wifi center and workstation as well as a seating area for relaxation, receiving visitors, hob nodding with neighbors.

The first nine floors will be designed as a podium accommodating office spaces with footprints of over 2,000 square-meters to meet BPO (Business Process Outsourcing) requirements.

Innoland is the sister company of the entity that recently developed three buildings, two of which are BPO buildings, the Sykes building and 16-story TG Universal (TGU) Building at the Asiatown IT Park.

The group, which is led by its chief executive officer (CEO) Joy Anthony Ong, expressed its keen interest in venturing into the real estate development in Cebu, and soon will eventually venture into projects in other regions, after establishing its name here.

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Posted on 11:57 PM, April 20, 2010 (BusinessWorld Online)

Draft REIT rules issued by regulator

DRAFT RULES to implement the Real Estate Investment Trust (REIT) law were issued by the Securities and Exchange Commission (SEC) on Monday amid plans by top property developers to raise cash through the investment vehicle.

"The implementing rules of Republic Act 9856 of 2009 shall make way for the full implementation of the REIT Act, which seeks to promote the development of the capital market and democratize wealth by broadening the participation of Filipinos in the ownership of real estate in the Philippines," the SEC said in a statement yesterday.

The regulator said it was open to comments on the draft rules until April 26.

The REIT bill lapsed into law last December, amid objections by the Finance department that it would lead to billions in foregone tax revenue.

SM Prime Holdings, Inc., the country’s largest mall operator, in February said it was looking to raise $300 million through a REIT. Last week, property giant Ayala Land, Inc. also said it wanted to raise $300 million through a REIT.

A REIT, as defined in the rules, is a stock corporation "owning income-generating real estate assets". It must be listed on the stock exchange and have at least 1,000 shareholders, each with at least 50 shares of any class and who, in the aggregate, must own a third of the REIT’s outstanding shares.

A REIT should have a minimum capitalization of P300 million. It must dispense 90% of its distributable income -- defined as net income adjusted for unrealized gains or losses -- as dividends each year.

The draft rules also list the kind of investments a REIT can make: "A REIT may invest in real estate located in the Philippines, whether freehold or leasehold. At least seventy-five (75%) of the deposited property of the REIT shall be invested in, or consist of, income-generating real estate."

"Deposited property" refers to the total value of a REIT’s assets and investible funds.

Other allowed investments include:

* real estate-related assets;

* debt papers issued by the government, whether denominated in peso or foreign currencies;

* debt papers issued by other governments or by multilateral organizations such as the Asian Development Bank;

* corporate bonds;

* stocks of non-property firms listed on the local stock exchange or foreign exchanges; and

* cash and cash equivalents.

A REIT must appoint a fund manager, who must be independent of the REIT, whose duties principally entail execution of the REIT’s investment strategy.

This strategy, according to the draft rules, must be good for three years -- but has to be submitted by the REIT to the fund manager annually -- and must cover "intended purchases and divestments of real and other properties."

The draft rules also lays out the REITs’ tax treatment: "A REIT shall be subject to income tax ... on its taxable net income ... provided that in no case shall a REIT be subject to a minimum corporate income tax."

"Taxable net income" is defined as gross income minus deductions allowed by the Tax Code and the dividends distributed.

The sale or transfer of real properties to the REIT shall be levied only half the applicable documentary stamp tax (DST) as well as registration and annotation fees.

Initial and secondary public offerings of securities will be exempted from the IPO tax while the sale or exchange of securities will be exempted from the DST.

Earnings from the sale of any real property, or rental earnings from the property, will be subject to value-added tax (VAT). A REIT’s sale or transfer of securities will not be subject to VAT since it is not considered a dealer.

The tax perks will be withdrawn in the event the REIT is delisted from the stock exchange.

"Any tax incentive that has been availed of by the REIT thereafter shall be refunded to the government within 90 days from the date of delisting," the rules state.

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Boracay under threat
Written by Lito U. Gagni / Market Files/ May 20, 2010/ http://www.business mirror.com. ph/index. php?option= com_content&view=article&id=25458:boracay- under-threat&catid=28:opinion&Itemid=64
A growing number of stakeholders in Boracay—considered one of the world’s best beaches because of its unique white sand that does not burn one’s feet even at midday—are worried about plans for an international airport in nearby Caticlan that could sound the death knell to what Boracay is famous for.
Members of the Boracay Foundation, which groups hotels, resorts and other tourism-related firms in the area, are at their wits’ end on how to block the construction of the international airport.
What strikes fear in their hearts are findings that building the international airport would mean leveling the so-called Caticlan Hill. This hill provides not only natural cover to the pristine beaches but induces patterns of wind and current directions that make up the Boracay beach sands. “Leveling of the hill will trigger local hydromet changes on the environment that would eventually lead to the longshore erosion of beaches along Boracay,” according to scientist Dr. Ricarte S. Javelosa.
We understand that opposition to the construction of the Caticlan international airport being planned is mounting by the day as the full impact of the study made by Dr. Javelosa triggers huge concerns: losing the famed beach sands, and the tourism revenues.
The Boracay stakeholders want to pursue the original proposal: the construction of an international airport in Kalibo, Aklan—not in Caticlan. To them, the bottom line should be that there must just be only one international airport in the province and that is the one being planned in Kalibo. By adhering to this plan, there would no longer be any need to level the Caticlan hill. The Boracay stakeholders have adopted the buzzword: Level the hill, Boracay beaches disappear.
Under the microclimate theory advanced by Dr. Javelosa of the Mines and Geosciences bureau, removing the hill that acts ad the climate barrier that drives the replenishment cycle of the unique beach will result in the beaches eventually disappearing as a result of the disturbed microclimate, thereby causing major erosion from the sea and leading to the stoppage of the replenishing of fine and light white sand by the gentle breezes.
Javelosa explains that unlike other beaches which have sand made out of silica, Boracay’s powdery sand comes from finely polished crushed coral eroded from the bedrocks of Caticlan and Boracay. His study revealed that the main drivers for replenishing Boracay’s sandy beaches are the wind and the waves tempered by the hill at the end of Caticlan airport’s runway. The hill, according to him, acts as a barrier against the harsh winds of the habagat and amihan converting these into gentle breezes that swirl around the areas of Caticlan and Boracay while carrying light sand particles that replenish the beaches of its unique white sand.
Aside from this, Javelosa posits that leveling the hill will unleash the full force of the monsoon winds and wreak havoc on Boracay’s so called microclimate. The strong winds will carry even heavier topsoil that will discolor the beach, and will create higher waves that will crush the beach, dragging its unique sand back into the sea. These strong winds will also cause foreign object damage to planes in the airport.
What Dr. Javelosa details are frightening and this is what serves as a unifying force for the Boracay stakeholders opposing the planned international airport of a big conglomerate. Of what use, after all, is an international airport in Caticlan if this would lead to disastrous results. The Typhoon Ondoy and Pepeng catastrophes have strengthened the resolve of the Boracay stockholders to bring to the consciousness of the populace the need to oppose the planned international airport.
The disastrous effects of the climate change brought about by the failure of the government to rein in corporate greed have been highlighted by the economic upheavals that were brought by the lack of environmental concern. For starters, the country needs to refocus its efforts on the Boracay environmental challenges, especially those that pose hazards to Boracay’s come-on as a tourism destination. There is so much at stake here and it’s time the government spoke with one voice on environmental concerns.
Perhaps it is time for the incoming administration to zero in on the situation obtaining in Boracay. The famed beach is in danger of losing its tourism driver and all because of a plan to level the Caticlan hill. The Noynoy Aquino administration should level the plan to put up an international airport and instead have the planned airport put up in Kalibo. There is no other way out except to forego the leveling of that hill.

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AboitizLand to develop P1.1B housing project in Mactan
Written by Wilfredo Rodolfo III / Reporter/ May 20, 2010/ http://www.business mirror.com. ph/index. php?option= com_content&view=article&id=25445:aboitizlan d-to-develop- p11-b-housing- project-in- mactan&catid=45:regions&Itemid=71
ABOITIZLAND announced its P1.1-billion residential development in Mactan Island, optimistic of the ever-growing local real-estate market in Cebu, which has kept the industry growing despite the economic crisis.
The new project, Ajoya, sits in a 15-hectare riverside property in Cordova town near its boundary with Lapu-Lapu City in Mactan Island. Construction is set to begin in June 2011.
Pia Manticon, vice president for residential business unit for AboitizLand, said the real-estate industry continued to grow in 2009 despite the global economic crisis thanks to local enthusiasm on real-estate investment. She said a huge chunk of the uptake for their other project, the condominium complex Persimmon, were local buyers.
“Usually it is the foreigners who race to buy condominium units, but with Persimmon, they ran out of units as local buyers gobbled it all up,” Monticon said. “We are answering the strong demand from local buyers and we expect this market to grow so we need to keep up.”
The same local market is being targeted by Ajoya, coined after the word Joy, a typical characteristic of Cebuanos which helped make Mactan island an international tourism destination. The middle-class project aims at providing housing units for workers based in Mactan Island.
Monticon said Mactan is growing economically not only through the hotels, but its economic zones. She bases her assumption on another Aboitiz-owned property, Mactan Economic Zone 2, which has seen significant growth even through the crisis years.
She said AboitizLand is expected to further grow with the real-estate industry in Cebu. She said the company, part of the Aboitiz family conglomerate, is still on the look-out for more developments in Mactan island and even in mainland Cebu.
“The industry is growing and this can be supported by the arrival of Manila-based developers who have come to build communities in Cebu,” Monticon said.
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SM Prime allots P6B for 2 malls in Cebu

Written by Miguel R. Camus / Reporter /July 18, 2010/ http://www.business mirror.com. ph/index. php?option= com_content&view=article&id=27822:sm- prime-allots- p6b-for-2- malls-in- cebu&catid=24:companies&Itemid=59

SM Prime Holdings Inc., the country’s largest mall developer and operator, is investing P6 billion in Cebu over the next three years to launch two more malls in the fast-growing Visayan province.

In a chance interview last week, SM Prime president Hans Sy said the listed company is investing P5 billion to build a mall on a 28-hectare lot within the reclaimed 240-hectare South Road Properties (SRP) in Cebu City.

Sy said another P1 billion will be spent to develop an SM shopping center in a five-hectare property in Consolacion, a first-class municipality approximately 12 kilometers north of Cebu City.

Construction works in the two will start this year. The Consolacion mall, the smaller of the two, is expected to be completed by 2011. Sy said earlier that this mall will offer 50,000 square meters (sqm) of gross floor area.

The SRP mall, which will be the developer’s third shopping center in the island, will feature 250,000 sqm of gross floor area. SM Prime made its debut in the island province when its opened SM City Cebu in 1993.

Meanwhile, the P5-billion budget for the SRP mall represents a fourth of the P20 billion the SM Group plans to invest in the area, which is being positioned as a smaller version of its Mall of Asia Complex in Pasay City.

Apart from the shopping center, plans for the SRP complex include a 60,000-sqm convention center as well as hotels and condominium buildings to be constructed under SM Development Corp., the listed middle-income condominium developer of the SM Group.

SMDC president Rogelio Cabuñag said earlier his company has been “invited” to build projects near the SRP mall.

The hotel arm of the SM Group is also bullish on Cebu, with its plan to open within this year the 400-room Radisson Blu Hotel Cebu at the city’s North Reclamation Area near SM City Cebu.

SM Prime plans to be the first company in the Philippines to hold a Real Estate Investment Trust offer. The company is eyeing to raise up to $600 million by spinning off its “mature” mall assets into a separate entity to be listed and traded on the local stock exchange.

SM Prime earlier reported a 10-percent increase in its first-quarter net income to P1.9 billion while revenues grew 15 percent to P5.4 billion.

This year SM Prime plans to spend P12 billion to launch four new malls in the country and one in China. The company expects to have a total of 44 malls by the end of the year, of which 40 will be in the country and four in China.

SM Prime to build P5-billion retail complex in Cebu property

By Zinnia B. Dela Peña (The Philippine Star) Updated July 19, 2010 12:00 AM/ http://www.philstar .com/Article. aspx?articleId= 594512&publicationSubCateg oryId=66

MANILA, Philippines - SM Prime Holdings Inc., the country’s largest shopping mall operator, has earmarked P5 billion over the next three years to develop a retail complex within the reclaimed 240-hectare South Road Properties (SRP) in Cebu City.

SM Prime president Hans Sy said the company intends to focus on the development of the recently-acquired 28-hectare lot within the SRP. Plans are also underway to acquire an additional five hectares which will require an investment of P1 billion.

The P5-billion investment represents a quarter of the P20-billion spending program that SM Prime has allotted for a mixed-use development project at SRP over a 15-year period.

The shopping center is estimated to have a gross floor area of 250,000 square meters, which would become the biggest retail complex in Visayas and Mindanao. It is targeted for completion in 2012.

Apart from the mall, also being planned are a 60,000-sq.m. convention center as well as hotels and condominium buildings possibly to be constructed under SM Development Corp. (SMDC), the listed middle-income condominium developer of the SM Group.

SM Prime acquired the property for P11,000 per square meter or nearly P3 billion.

SM Prime is spending P12.1 billion this year for the opening of five new malls nationwide and one in China. Slated for opening this year are Calamba, Laguna; Masinag, Antipolo; Tarlac, Novaliches and San Pablo, Laguna which will provide 279,228 square meters in total gross floor area.

The company is scheduled to open its fourth mall in China, SM Suzhou in the fourth quarter of the year. Located in the province of Jiangsu. SM Suzhou will have a GFA of approximately 70,000 sqm.

Two new malls programmed for opening in China in 2011 and 2012 are Chonggqing and Zibo which will add to SM Prime’s three existing malls - SM Xiamen, Jinjiang, and Chengdu.

SM Prime is targeting to put up two malls each year in China to bring the total number of malls in the mainland to 10 by 2014 as it seeks to take its malls overseas public.

By end this year, SM Prime expects to have a total of 41 malls with total gross floor area of 4.5 to 4.8 million square meters. Its malls currently have a foot traffic of over 2.5 million per day.

For next year, SM Prime will start building malls in General Santos City, Commonwealth Avenue in Quezon City, Lanang (second mall in Davao City) and its second mall in Cebu to be located in La Consolacion, South Reclamation project.

Developer pledges: No more floods

Saturday, July 31, 2010

LAND owner and developer Genvi Development Corp. yesterday assured the public there will be no more flooding this rainy season in the areas near Monterrazas de Cebu.

Twelve detention ponds are already operational in the 210-hectare urban residential resort community development in Guadalupe, Cebu City to deal with flooding, the company said.

According to Ting Agbisit, vice president for construction and technical planning, “there are already four detention ponds located in Northridge and eight in the Peaks. We are planning to add 12 ponds after a few years.”

Monterrazas started their development in April 2007 and it spans four kilometers and 210 hectares of land covering portions of Barangays Guadalupe, Labangon, Tisa, Sapangdaku and Buhisan.

In past years, landslides in nearby barangays were blamed on the upscale subdivision and caused the suspension of the development. But after they put up flood mitigation measures, the ban was lifted in 2009 by then mayor Tomas Osmeña.

Monterrazas at that time was still under Landco Pacific Corp., which severed their ties with lot owner Genvi last February. Genvi then took hold of Monterrazas.

Published in the Sun.Star Cebu newspaper on July 31, 2010.

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Aklan pushes P1.3B project for Boracay

By Nestor P. Burgos Jr.
Philippine Daily Inquirer
First Posted 22:07:00 07/26/2010/ http://newsinfo. inquirer. net/inquirerhead lines/regions/ view/20100726- 283318/Aklan- pushes-P13- B-project- for-Boracay

ILOILO CITY—The Aklan provincial government will continue to implement a P1.35-billion reclamation project in Caticlan, jump-off point to the country’s prime tourist destination, Boracay, and on the resort island itself despite opposition from a group of business owners.

Governor Carlito Marquez said the project covering 36.82 hectares in Barangay Caticlan in Malay town and 3.18 ha in Boracay, would help Boracay’s tourism industry and the economy of the province, contrary to the belief of the Boracay Foundation Inc. (BFI) and other critics.

“It is their right to oppose although their concerns are unfounded and we believe the project will benefit the greater majority,” Marquez told the Inquirer in a phone interview on Monday.

The BFI, composed of around 200 business owners in Boracay, has issued a resolution opposing the project, citing the lack of adequate consultation on affected areas and communities, environmental concerns and fears that the development may directly compete with businesses on the island.

Marquez said the group might have been misled by “wrong information.” He said: “We will not put up businesses that will compete with Boracay. In fact, it will complement and enhance the island.”

The governor gave assurance that the project would abide by environmental laws and guidelines. He pointed out that it had already been issued permits from various government agencies.

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Development of the real estate business
August 18, 2010/ http://www.sunstar.com.ph/cebu/osmena-development-real-estate-business
THE real estate business in the early 1950s was largely unorganized and the caveat emptor spirit of the time – “let the buyer beware” – prevailed. No government license laws existed to govern activities of real estate brokers and their salesmen.
Congress later enacted Republic Act 9646, “An Act Regulating the Practice of Real Estate in the Philippines, Creating for the Purpose a Professional Regulatory Board of Real Estate Service, appropriating funds therefore and for other purposes.” It took the government five decades to finally resolve the implementing rules and regulations urged then by the Philippine Association of Real Estate Board to establish trade ethics, standardization of real estate brokerage practices, commission charges, and servicing fees.
In the early 1960s, the Cebu Realtors’ Board was organized on the concept that the exchange of real estate practice and business trends information among the individual real estate boards instilled the need for unity in the real estate business. As a trade organization, the Philippine Association of Realtors Board (Pareb) was patterned after the US National Association of Real Estate Boards, when it drafted and adopted in 1913 a comprehensive code of ethics which contributed greatly to the transition of real estate from an unorganized business to its current status of a profession.
The adoption of the association’s emblem and the coining in 1916 of the trademark term “realtor,” which is reserved for sole use by the association’s active members, followed. The success of these individual real estate boards soon attracted the attention of organizing other real estate organization.
The creation of the Housing and Land Use Regulatory Board (HLURB) and the enactment of the condominium law during the Marcos rule eventually led toward the accomplishment of desirable social and economic ends to real estate development. Gone were the developers and fly-by-night operators whose road networks in the residential subdivisions are substandard, where road width is more of an alley and only open canal served as storm drainage.
One such environmentally-friendly Marcos decree was prohibiting the development of land with a slope over 60 percent and the area to be used for silviculture only. The purpose of the decree is to prevent soil erosion where the trees and shrubs hold the soil. Critics argue that HLURB should re-implement the 60 percent slope prohibition to prevent future flooding of the coastal areas.
The realtor’s preamble to the code of ethics set forth that, “under all is land, upon its wise utilization and widely allocated ownership depend the survival and growth of free institutions and of our civilization. The realtor is the instrumentality through which the land resources of the nation reach its widest distribution. He is a creator of homes, a builder of cities, a developer of industries and productive farms.”
For the record, let it be recognized that realtors have, for many decades, played an important role in the development of the industry in Cebu. It is because a realtor endeavors always to be informed regarding the law, proposed legislation, and other essential facts and public policies, further, the “realtor pledges himself to be fair to purchaser or tenant, as well as the owner whom he represents and whose interests he should protect and promote as he would his own; it is the realtor’s duty to advise the owner honestly and intelligently regarding its fair market value.”
It is the duty of every realtor to protect the public against fraud, misrepresentation, or unethical practices in connection with real estate transactions. Although most people think of real estate brokerage when the term real estate business is used, the greater part of real estate activity initiates in other areas of real estate specialization.
Many who are actively or inactively engaged in real estate are not in the brokerage branch of the business and are not negotiating real estate transactions for others and for a commission. They are investing in real estate or mortgage, buying and selling an interest in real estate on their own account, appraising real estate, constructing buildings, or working in a government agency that owns, manages, regulates, taxes, finances, or seeks to stimulate the economic use of real estate. The challenge addressed to the Cebu Realtors’ Board is to broaden and encourage real estate education especially to the unlicensed “colorum” realty salespersons.
Published in the Sun.Star Cebu newspaper on August 18, 2010.

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Filinvest Land to build P25B project in December
August 27, 2010/ http://www.sunstar.com.ph/cebu/developer-build-p25-b-project-december
FILINVEST Land Inc.(FLI) requested Cebu City Hall to finalize the power supply, telecommunications and transport utilities at the South Road Properties (SRP), as it prepares to start construction of its P25-billion project this December.
It also wants the City Council to confirm through a resolution the City Attorney's legal opinion clearing them of any obligation to pay transfer taxes amounting to P3 million.
Other than the city treasurer's move to collect transfer taxes from them, which he said was a minor “hitch,” Tristan las Marias, FLI's vice president for Visayas and Mindanao, said the City Government has been cooperative in their joint venture.
FLI will break ground later this year for the first 150 residential units in its joint venture with the City, and the development of a commercial and entertainment complex in the 10.6-hectare Pond F.
Las Marias said they can turn over at least P72 million to the City Government by June next year if all 150 units are sold immediately.
The amount represents the City's 10-percent share in the joint venture for the development of 60 residential buildings on the 40-hectare lot.
“We have received quite a significant amount of intentions and reservations from interested buyers... Our arrangements with the City is we would be able to remit almost quarterly what we collect. So if we can convert all these reservations to actual sales and collection by the time we get our license to sell.
Hopefully by second quarter next year, we would be able to remit the share of the City,” las Marias said.
Its license to sell and collect payment for the residential units is scheduled for release this October.
First phase
Some P4 billion will be poured in for the first phase of Citta di Mare, which includes four five-story buildings in Amalfi Coast, the car-free residential area; and Il Corso, the commercial and entertainment area on Pond F.
FLI is the first investor to buy a property at the SRP. In February last year, it signed the contract for the purchase of the 10.6-hectare lot for P1.5 billion and the joint venture to develop the 40-hectare area.
The City's contribution to the joint venture is the lot, while FLI will invest in the construction of 60 residential buildings with commercial and retail areas. Some 12,000 to 15,000 condominium units will be constructed.
For the first four buildings in Amalfi Oasis, 150 units will be constructed this December and these are expected to be completed in 12 months.
Most of the units have a floor area of 60 square meters at P75,000 to P80,000 per square meter. At P4.8 million per unit, FLI can sell the first 150 units for P720 million.
From that, Las Marias said the City could earn at least P72 million for its share from the joint venture.
In a press briefing yesterday, Las Marias presented their plans for the 50.6-hectare Citta di Mare, which is Italian for “City by the Sea.”
Once completed in 20 to 25 years, Citta di Mare will resemble the seaside communities in Italy.
Features
It will be an environment and child-friendly residential area, he said, since 65-percent of the 40-hectare development will be parks and open spaces, and it will be a completely car-free zone.
Road networks and parking spaces will be underground, and motorized vehicles will not be allowed in the residential area, las Marias said.
The 10-hectare Il Corso will also feature an amphitheater, an amusement park, a beach sandbox, a hotel, retail and commercial centers and a water sports activity area.
Its centerpiece would be a Spanish-era galleon that will feature a museum and restaurants.
In a press briefing yesterday, las Marias said the City has been a “very cooperative” joint venture partner in terms of providing the necessary utilities at the SRP.
“The City has been cooperative in terms of things we need from them. They have discussed their plans on water and power facilities, so I guess it's just a matter of implementing these things,” he said.
Water supply is already available, but the City has yet to ink a deal with the power supplier and set up telecommunications and transport utilities, particularly the Bus Rapid Transit (BRT) system.
He also said it would help them market the project better if the City can fast track the implementation of the BRT as the means of transport in SRP. The BRT will be set up in 2013 yet.
“I think the capacity of the City to contract a party or generate its own power to support developments in the SRP, that's going to be very critical. They're doing studies and they're talking to business groups on how they can provide this basic utility. I hope they can have a firmer plan in the soonest possible time,” he told reporters.
In a separate interview, Joel Mari Yu of the Cebu Investment and Promotions Center, the marketing and management arm of the SRP, said the water and power supply is not an issue.
The Metropolitan Cebu Water District was already contracted for the water supply.
Although the City still has to enter into an agreement with the Visayan Electric Co. for special arrangements on power supply at the SRP, Yu said it is providing electricity to establishments at the SRP at present.

Published in the Sun.Star Cebu newspaper on August 27, 2010.

Sunday, December 13, 2009

Nominations to body to draft RESA rules up

Sunday, December 13, 2009

Real Estate industry posts 15% sales hike

AboitizLand unveils new urban village development: The Persimmon

Ayala Land unveils 2010 plans in multiple growth centers

SM signs P2.7B deal with Cebu City

Pag-IBIG readies more loans for housing

Draft REIT rules issued by regulator