SENATOR BONGBONG MARCOS - A HOME FOR EVERY FILIPINO

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SEEING IS BELIEVING







Contents 16 Purita Soliven 24 Meranti 30 Park Terraces 40 West Grove 48 Architect: Palafox 56 Makati Redevelopment 62 Suntrust ADV Supplied 68 PREF: Real Estate 76 Asian Reit 80 Hotel H2O 84 Bohol 90 Singapore 94 Interview: Bongbong Marcos 124 Marissa Del Mar 128 CREBA 138 RICS

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SINGaPOREJEWELS•MaKaTIREDEVELOPMENT•PaLaFOX

Up Close: Purita Soliven Overview:

Public-PrivatePartnership

Asian REIT Condo living Atty. Morales

RESA Law BPO Industry Mass Housing What is a Realtor?

Sen.Bongbong Marcos

A HOME FOR EVERY FILIPINO

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Published by

EVERY FILIPINO A HOME FOR

Published by

Sen.Bongbong Marcos Atty. Morales Condo living Asian REIT Public-PrivatePartnership

Overview:

Purita Soliven Up Close:

Realtor? What is a Mass Housing BPO Industry RESA Law

SINGaPOREJEWELS•MaKaTIREDEVELOPMENT•PaLaFOXMaGIC

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RealestateWorld daNIel R. dela CRUZ PUBLISHER

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Real Estate World is published quarterly by Media Central Inc. Opinions expressed in its pages are solely those of the writers and are not necessarily endorsed by Media Central Inc. We welcome unsolicited manuscripts and photographs. We prefer to receive soft copies, by email. If you send these by post kindly accompany these with a self- addressed stamped envelope if they are to be returned. While reasonable care will be taken by the editors, no responsibility is assumed for the said materials. Copyright © 2008 Media Central, Inc. all right Reserved. Other Publications by Media Central Inc.


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PublishersNote Realestate WoRld

The industry is definitely bullish about prospects at least up to the medium term, barring any major crisis. For one, Vice President Jejomar Binay, Chairman of the Housing and Urban development Coordinating Council (HUDCC), and Senator Ferdinand Marcos Jr., Chairman of the senate Committee on Urban development and Planning, are single-minded about addressing policy issues for the sector to reach its full potential to help end social problems in the country. a Department of Housing, better fiscal incentives, and closer private sector partnership are all part of their work program. We are pleased that after our feature on the Vice President in November, Senator Marcos Jr. took time out to grant us an interview in this issue where he shared his thoughts and plans for the sector, particularly in mass housing. Secondly, pronouncements by the business process outsourcing (BPo) sector about even better business this and the coming years will mean more office spaces and employment. Inside is a feature detailing what the BPO sector is expecting, in the words of its CEO. Tourism, another booming sector, likewise poses huge potentials considering the requirements for hotels, resorts, restaurants and related developments. Then, we are of course aware of the 3.5 million housing backlog that offers room for private and government players and stakeholders to be innovative and creative in filling this up, considering a host of issues. the challenge to reduce carbon footprint is encouraging employees to live nearer their places of work in Metro Manila, increasing opportunities for condominium developers, the special focus of this issue. Imagine the positive ripple impact on the sub-sectors and allied industries that housing provides! Notwithstanding these developments however, we take note of urgent issues that we are very seriously concerned about. For this reason, we devoted at least three articles in this issue to explain common and specific problems that are the focus of industry association advocacies. We are positive that if these are solved, the industry is set to achieve new heights of success not only locally but as it gradually ventures into overseas projects. daniel de la Cruz Publisher

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R eal estate editorialNote WoRld

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V.V. Soliven Group eyes to be in Phl’s top 10 real estate firms business…We paid our tuition on Purita Soliven’s significant earnings experience in various business endeavors could help transform her 45-year-old company into one of the top 10 real estate corporations in the country in the next five years. Soliven recalls she was only 12 years old when she became the manager of the poultry business established by her parents who were regular government employees then. “We were five in the family; our eldest sibling studied medicine, the next one took dentistry. Thus, my parents could no longer support my study if they did not put up a sideline

from eggs and chicken,” she says. after finishing her elementary and secondary education in College of the Holy Spirit in Tagbilaran, Soliven took an Industrial and Personnel Psychology course at the Philippine Women’s University in Manila. While studying, she managed the medical book review business of her brother who went to the United states that time. Her brother bought a lot and she was asked to settle the monthly amortization through profits in the business. this was how she met her husband, Victorio Soliven, who was the manager of the former st. Louie Realty Corporation.

V.V. Soliven Group of Companies After getting married, Victorio and Purita Soliven established their own company with the name V.V. Soliven Realty and Associates (VVSRA) in 1965.

The firm initially sold

subdivisions owned by reputable developers and landowners. Three years after, the couple incorporated the VVSRa now called the V.V. Soliven Realty Corporation. From just selling exclusive subdivisions, it branched out into construction of houses and development of subdivisions. solid Builders Inc. was then formed in 1973 to meet the need for mass housing construction. The housing projects of the V.V. soliven Group of Companies range from low-cost to high-end housing represented by its crowning glory the millionaire’s row, called the Loyola Grand Villas, a 120-hectare property located at the back of ateneo University and bounded by La Vista, Balara and ayala Heights.

Soliven, the company’s chief operating officer, credited this success to pioneering ideas the couple had introduced to make their business competitive. “since we had no big capital then, we went into joint ventures and swap deals…also that time, coming out nice brochures for the properties was in vogue but these were not developed as per schedule so buyers were discouraged. so we put a two-year guarantee in our contract indicating that their money could be returned. That attracted more buyers, that was how we grew,” she relates. “It doesn’t mean that if you have no capital, you would not grow big. It is just a talent of making entrepreneurial ideas.”

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“Our goal for the next five years to 2016 is to be considered one of the top 10 real estate companies (in the country). We want to revitalize the V.V. Soliven Group. We have so many idle assets and I’m really out to make sure that these assets are going to be developed.”

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Winning attitudes for success From just selling exclusive subdivisions, it branched out into construction of houses and development of subdivisions. solid Builders Inc. was then formed in 1973 to meet the need for mass housing construction.

“Perseverance, positive mental attitude, very industrious and never giving up on all problems and difficulties but instead treat these as challenges…Women should believe that we can just be as good as men when it comes to being successful in the real estate business,” says Soliven.

Soliven, the company’s chief operating officer, credited this success to pioneering ideas the couple had introduced to make their business competitive.

Soliven is handling the overall operations of the company after her husband died last November. their children are also into the business.

“since we had no big capital then, we went into joint ventures and swap deals…also that time, coming out nice brochures for the properties was in vogue but these were not developed as per schedule so buyers were discouraged. So we put a two-year guarantee in our contract indicating that their money could be returned. That attracted more buyers, that was how we grew,” she relates. “It doesn’t mean that if you have no capital, you would not grow big. It is just a talent of making entrepreneurial ideas.”

“Our goal for the next five years to 2016 is to be con sidered one of the top 10 real estate companies (in the country). We want to revitalize the V.V. Soliven Group. We have so many idle assets and I’m really out to make sure that these assets are going to be developed,” she says further. apart from managing her company, Soliven, since 2000, has been occupying various positions in the Chamber of Real Estate and Builders’ associations Inc. (CREBa) and the subdivision, Housing developers association Inc. (sHda). –-lG

“It doesn’t mean that if you have no capital, you would not grow big. It is just a talent of making entrepreneurial ideas.”“

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Success Profile:

Editha Manansala

speaksonsuccessandindustry prospects Are you also active in industry advocacy and associations? Which organization/s and your position here? I am a long standing member of the Chamber of Real estate and Builders association or CReBa where I served as vice president for Internal affairs and Publications and now as director. I am also the president of the CREBa International Foundation Inc., and FIaBCI Philippines where I am a director. How is the real estate industry now compared to when you started? Competition wasn’t as stiff then as now, chiefly because we had less players competing for the same market. In the period from the late ‘80s through the ‘90s we only had players such as Filinvest, Camella Homes, Sta. Lucia, FilEstate, VV Soliven, Moldex, and just a few others. then as now, bureaucratic red tape and restrictions held back industry progress, especially initiatives and projects in low-cost row housing, which was one of the industry’s major areas of interest. Other industry interests then were townhouses (really popular) and single-detached homes. Nowadays, medium-rise developments are getting more interests because of the scarcity of land, especially in urban areas such as Metro Manila. Will you consider yourself successful already? What are the factors contributing to this success? Well, I think yes, I have had some success. I have come a long way since I started in this field, thanks to my sales network and the organizations where I belong. To be successful in the real-estate industry—and in other fields, for that matter—you need a few enablers. In my case, I operate under a set of work principles I call HOPE: H for hard work; O for openmindedness and not being resistant to change; P for patience and perseverance; and E for enjoyment of work. You see, I consider myself as my own competition. and so each second, each minute, each hour, each day must count. I have to produce every day. I have to have a new, innovative idea every day.

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Are you also active in industry advocacy and associations? Which organization/s and your position here? as I mentioned earlier, mediumrise development is popular today and should continue to be so in the next few years, especially for units in the P1.5M to P4M range because of the strong emerging aspirational market of young professionals and OFW beneficiaries. Of course, the industry is well aware now that the market desires green elements in the design, and so they will surely be an integral part of these developments. Perhaps as a result of that, we’re seeing too a preference for resort-type features. Those are going into the designs now and into future projects as well. still, the need for low-cost housing remains great because of the substantial deficit separating demand and supply. Our housing backlog, to be frank, is huge. If the new government can remedy even some of the more restrictive, obstructionist policies of its regulatory bodies, the industry can make an immediate dent on the housing problem. What emerging trends in materials and designs do you see? The choice of materials always follows the design. With designs going green we expect the use of naturally-occurring materials over synthetic ones, and also good local materials over expensive imported ones.


at Top Rank, where I serve as president, our current flagship project, the larossa Residences, is a medium-rise development built around an urban botanical-garden framework. It also promotes Filipino architecture, encapsulating in one project the best of what is endemic and the best of what is green. It’s quite a unique concept. Unfortunately, good lumber is hard to come by today because we have over logged all our forests. However, we can work with substitutes, as we have for many years now, such as coco lumber and also steel. Cement, more than ever, will be a very important material in the foreseeable future. In relation with this, we at CREBa are strongly committed to supporting and initiating green development, particularly in the proper—that is, environment-aware—use of land and in the use of green technologies.

Company background When and how did the company start? Why go in the real estate industry? Few realize the important role real estate plays in the economic life of any community or, for that matter, a society. Real estate is major pump primer because it affects over a dozen other principal industries. and it provides the community what very few other industries can, a home for the family. That is why we are in the real estate business. Top Rank is composed of a team of experienced professionals and creative young talents that now total 41 under my guidance as president. It was created to provide the ideal home to the modern Filipino family through innovative and highly accessible acquisition plans. In a nutshell, we specialize in delivering the best in real estate properties.

Current and future projects Top Rank’s premier offering is the3.6-hectare, 11-building Larossa Residences project, with an estimated value of P10B. It is Metro Manila’s first and only true urban botanical community. Other prestige projects will be added in our portfolio in the near future as our mother company, Primehomes Real Estate Development Inc. has taken an aggressive stance. although the primary target market is the professional modern Filipino family, Top Rank projects also target expatriates, small and medium-sized entrepreneurs, corporations/associations and OFWs.

Company plans and future projects Because Top Rank is always looking to provide the best real-estate products for the Filipino, future plans will gravitate toward prestige projects that are quality yet reasonably priced.

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NaRsharesprofessionaland technicalexpertisewithCREBA

Jeff Hornberger, NAR Director for Global Alliance.

A

Chicago-based, non-profit organization, NAR represents 1.2 million members in the United States, the largest if not one of the largest in the world. Established in 1908, it has set up partnerships with 80 organizations in 60 countries. “The U.S. is different from the Philippine real estate sector in that construction is very strong here, unlike the U.S. which is a re-sell market,” explains Jeff Hornberger, NAR Director for Global Alliance. He also acknowledges the huge potentials in the sector. “The Philippines is very attractive for the resort and second home market, particularly among America’s baby boomers who are looking to the Philippines as a retirement venue. Other than this, the booming call center industry also spells tremendous opportunities for the sector.”Asuncion Henry, a broker/realtor who serves as

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the NAR President’s Liaison to the Philippines, mentions that her dream is to put up an international village here to cater to foreigners who wish to leave the winter season in their countries to find a warmer “refuge” also for leisure. The attraction of the country as a tourist and investment site rests as well on the fact that the Philippines offers the least expensive real estate in Asia. Thus, there is the need to build local capacity to meet these opportunities. And this is an expertise of NAR”, she notes. The MOA gives CREBA members access to a wealth of resources of NAR, including the opportunity for them to be called realtors, a trademark of NAR, a global brand for professionals who adhere to a code of ethics, explains Hornberger. Under this fiveday program under American trainors, NAR will bring to the country an international

Members of the Chamber of Real Estate and Builders’ association (CREBa) can look forward to upgrading their skills and profession to global status after the organization inked a memorandum of agreement (MOa) with the National association of Realtors (NaR).

education program, graduates of which will be called Certified International Property Specialists (CIPS) and become international members of NAR. In the U.S., only 3,000 NAR members have so far gained such certification, making them an “elite group”, he adds.

“The essence of this MOA is really a partnership for a closer working relationship, where we can successfully engage in referral programs, share experiences, and improve products and services. This will certainly put the Philippines at the forefront of real estate,” he stresses.


How could a local real estate professional find their niche in the global market? Establish presence and exposure in the global real estate network? How can a local agent connect? The National Association of REALTORS (NAR), the “voice for real estate” representing over 1.2 million members in the United States and across the globe. As an overview, NAR started its international operations program in the early 1950’s; the association has built a network of cooperative agreements with real estate associations around the world, and is actively expanding and developing this network. As international developments play an increasing role in how and where capital is invested throughout the world, the NATIONAL ASSOCIATION OF REALTORS® is expanding global real estate market opportunities for its commercial and residential members, while advocating private property rights around the world. As a paid International REALTOR®T Member, benefits go beyond the use of its trademark and logo. Shonee Henry, CIPS

Broker, Owner Allegro Realty & Mortgage NAR President’s Liaison to the Philippine Real Estate

RESA9646 Law and Global Perspectives as I see it!

Global Real Estate, RESA9646 Law and NAR What does the RESA Law mean to all? Real estate practitioners play a vital role in the social, political, economic development and progress of their respective countries by promotion of the real estate industry in this competitive global market place. Strict regulations and guidelines shall uplift the standards of all practitioners and be in parallel with the international real estate community and be competitive in the global market. “The diaspora of our citizens throughout the world require that a strong national body serve to be a catalyst for the transfer of real property; this historic alliance will enable international business to the broker level in a profitable and ethical manner”.

NAR promotes among others: 1. Brand-Name Recognition. As a paid International REALTOR® Member, you are aligning yourself with the most trusted name in real estate. Only NAR members can use the REALTOR® logo and name, representing a strict code of ethics nearly 100 years in the making. 2. Resource & Research. c. Global Online Exposure through a worldwide directory d. Increase global engagement. e. Cost effective marketing activities, new products and services. f. Access trends and market reports g. Global business transformation. h. Social Networking. 3. International Trade missions, conferences, and expos. 4. International Educational Programs such as a. Certified International Property Specialist (CIPS) b. Council of Residential Specialist (CRS) c. Real Estate Advanced Program, CRS International Train the Trainor Program d. Certified Commercial Institute Management (CCIM) e. NAR’s Green Designation f. ARELLO (Association of Real Estate Licenses Law Officials) overseas market. Although we find the term “global” overwhelming and with the constant fear of not drumming up business and the risks associated with it success in the global market, becoming NAR International REALTOR® Member gives you excellent opportunities. Do not miss out on opportunities available to you. Only real estate professionals who are members of NAR’s cooperating association is eligible to become International REALTOR® Member.

With the passing of the RESA9746 Law in the Philippines regulating the practice of real estate in the country creates a milestone for real estate professionals across the globe. What is the importance of this new law in the global real estate community? Many foreign nationals invest in properties across the globe thus gives the Philippines great exposure to the global network with its strict licensing requirements In closing, as an International REALTOR® Member you are provides investors comfort. This also means all real estate a contributor in positioning the Philippines as a real estate professionals in the Philippines can now be recognized as destination with its richness in resources, known for its practitioners at a level with international brokers and at par hospitality, medical tourism and tourism. with international real estate standards. A milestone every real estate professional in the Philippines should be proud of!

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OFWs FUELING VISTA LAND EXPANSION OFWs fueling Vista Land expansion VISTA LAND and Lifescapes, Inc. plans to increase the total value of its condominium projects for sale next year to P12.5 billion. New low- and mid-rise condominium projects, mostly in Southern Luzon, will add to Vista Land’s existing 17 projects. The firm’s portfolio has buildings worth P5.03 billion, the statement said. Vista Land Chief Executive Benjamarie N. Serrano said the property firm would be opening several buildings next year with a combined value of P7.5 billion. “The successful launching of the new development projects

would bring the total value of [the firm’s] vertical units to P12.5 billion by 2011,” Ms. Serrano said. Low- and mid-rise development is the “logical step for Vista Land, with the demand driven by end-users in the metropolis who want to enjoy the advantages of a low-rise or mid-rise development,” she added. Vista Land operates under five brands -- Brittany that sells house and lot units for as much as P9 million each, Crown Asia for units worth P3.5 million to P9 million, Camella Homes for units worth P3.5 million and below, Communities Philippines that sells Camella Homes in the provinces, and condominium arm Vista Residences

“The increasing number of vertical developments along [South Luzon Expressway] is a testament to the outward movement of the market,”

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Projects in Southern Luzon are expected to hike sales further. “The increasing number of vertical developments along [South Luzon Expressway] is a testament to the outward movement of the market,” Ms. Serrano said. The firm has delivered about 200,000 housing units since 1977. “We have opened a total of 17 low-rise and mid-rise buildings ... We are tapping into our existing master-planned communities where we will incorporate more of these types of developments,” Ms. Serrano said. The biggest “township” project, the 60-hectare Vista Lakefront at Sucat in Parañaque, will soon have residential condominiums. Vista Land has already completed six of seven mid-rise buildings

in the resort-themed Presidio enclave. Of the firm’s P10.2billion budget, P4.3 billion was spent in the first half for land development, housing construction and acquisition of more land on top of the existing 1,673 hectares. Shares in Vista Land, whose profits grew by 12% to P1.44 billion in the first half, closed P0.03 higher at P3.23 each yesterday.


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Innovations, greenery top The Meranti features Inspired by a vision of life where passion meets innovation, alveo Land unveils The Meranti, its third and newest high-rise section in Bonifacio Global City, Two Serendra. The Meranti is strategically positioned in the rising lifestyle, business, and retail epicenter in the metro – catering to the diverse interests and ways of life of residents in the area. “People who are looking for 65% greenery and a lot of space even while in their condominium will find these and more at The Meranti,” says anton Sanchez, Sr. Manager of the Project development department alveo land. “one important, new feature is the Culinary Studio in the Social Zone section. The Studio is a shared facility that can house about 30 people and from where residents can cook and entertain friends.” also in this section are the Living Museum, a lush landscaped garden enclosed in glass, which provides a venue for large gatherings and community festivals. The Enterprise Lounge, the Discovery Hall, and Stellar Peak boast of top-rate facilities that can cater to leisure, entertainment, and business meetings. Meanwhile, the Fitness Club is fully-equipped with complete gym amenities and panoramic views of the development’s lush ground. There are also the Kids’ Zone and Total Wellness Zone. The Meranti, which is already 50% sold, has 45 floors. a 36- to 40-square meter unit costs from P4 million, while bigger units can amount up to P13 million for 110 square meters. 24 | Real estate WoRld

Phase 3 water inspired masterplan


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Enjoylife’sfeastsat The Lerato If you want to experience a cosmopolitan lifestyle, then The Lerato, alveo Land’s newest project, is set to offer this pleasure. Designed specifically for executives, professionals and students within the Makati Central Business District (MCBD), the units measure from 30 to 32 square meter and costs P3 million, regardless of the height and view. “These are the investor, on-the-go market that wants home, work and play in one continuous area, says aris Gonzales, Senior Manager for Project Development of alveo Land. “The Lerato’s location makes it both a prime venue for residential living and for offering various dining options as a lifestyle choice, an experience unique to the development.” Further, The Lerato’s amenities—from lap and lounge pools, a workout studio, and the open green spaces that have become one of alveo’s distinguishing features are complemented by boutiques, cafes, and other commercial spaces, all in close proximity. add The Lerato’s convenient location that will connect residents to a wide range of destination hotspots – from world-class learning institutions to prime commercial business districts “The Lerato is aimed at satisfying the growing hunger of the Filipino for a cosmopolitan lifestyle and a fuller life,” he notes.

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Mass Housing :

A Priority in the Medium –Term Philippine Development Plan M ass and socialized housing has been listed by the Department of Trade and Industry (DTI) as a priority industry in the Medium-Term Philippine Development Plan 2011-2016. Government seeks to address the housing gap of 5.8 million units from 2011 to 2016 or about 800,000 units per year.

to support this, the Housing and Urban development Coordinating Council (HUdCC) announced that it has increased the target of housing loans from 75,000 to 150,000 housing units. It will also set aside P30 billion in new loanable funds for both buyers and developers. This is in line with the government’s thrust of facilitating access to a variety of housing options that are decent, affordable, and responsive to the diverse and changing needs of the people by providing incentives to low-cost mass housing developers. Investing on mass and socialized housing will enable investors to enjoy certain incentives. Mass housing is defined by the Board of Investments (BOI) as those with units sold at P400,000 up to P3 million. on the other hand, socialized housing covers units sold at less than P400,000. BoI provides incentives such as income tax holidays to developers of mass housing based on the project applied for. Meanwhile, the HUDCC gives incentives for developers or investors in socialized housing. 28 | Real estate WoRld


In the choice of housing developments, developers may consider the following priority infrastructure of government: o MRT 8 (Sta. Mesa-Taytay) o C-6 Expressway o North Luzon Expressway - East La Mesa Parkway o R-7 Expressway o CLEX Phase 2 Cabanatuan - San Jose o Central Luzon Expressway Phase 1 tarlac-Cabanatuan o SLEX Extension to Lucena City o Cavite-Laguna Expressway - Laguna side o Calamba-Los Ba単os Expressway o C-5/FTI/Skyway connector o Kalibo Expressway o New Bohol airport development o Puerto Princesa airport development o New legaspi (daraga) airport development o Kalibo airport Upgrading o NaIa terminal 3 Upgrading and Full Operation o Development of the Mindanao Railway System

Another project is the redevelopment of Intramuros which includes the resettlement of the informal settlers there, a ready market for the mass housing. - EZM

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Park Terraces Point Tower:

Redefining the good life

ayala Land Premier’s three-tower enclave, Park Terraces, defines a new address within ayala Center. Flanked by the diversity and ideals of being at the heart of a constantly evolving integrated city, future residents are now given access to a lifestyle that they can tailor-fit and call their own. the point tower is the second development within Park Terraces, following the same design philosophy: generously-sized units, energy-efficient features, refined finished, and select but special amenities. at the point tower, however, units are zoned so that all one bedroom units rise from the 5th floor to the 33rd floor, all two-bedroom units from the 34th to the 47th and all threebedroom units and penthouse units are at the 48th to the 59th floors. Units are designed to suit various lifestyles. One-bedroom units are designed with spacious bathrooms and dual access for bathrooms to be reached by guests without going through the bedroom. three bedrooms units, however, have the size for entertaining, so service entrances were provided to allow caterers the facility to enter and exit the unit without disturbing the party. 30 | Real estate WoRld


Park Terraces Point Tower Redifining the good life

But all units share common elements: optimal light and natural ventilation through sliding doors, a structural design that removes perimeter beams and allows for breezier and brighter units, energy-efficient features like master switch key cards which allow unit owners to manage their energy consumption once they leave their units, and refined finishes. there are also amenities such as its Club Floors that provide residents a variety of recreational options: courtyard gardens an interactive play area that offers children a safe and fun environment to interact with other kids, while a fully equipped fitness center and a swimming pool provide future residents with options for exercise or recreation. Cool down after a strenuous work

out in the airconditioned lounge or, hang out in the open-air veranda. Or one may simply soak in the sun on the elevated View Deck. and an elevated Relaxation comes in the form of other well-designed amenities at the top of the House: a Sky Terrace facing Laguna Bay, and two luxurious Club Rooms, which either offer views of the renowned Makati Skyline or the serene Manila Bay. a retail area on the ground floor opens up a world of possibilities for residents with provisions for restaurants, cafĂŠs, hair salons, and boutiques, all in just an elevator ride away.

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Park Terraces Point Tower Redifining the good life

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a sanctuary home offering luxury resort experience a re you looking for a sanctuary home away from the noise of the city after a stressful work? Roxaco Land Corporation’s newest development, Anya Resort and Residences, offers this ambiance and experience to residents and resort guests which are not available in typical subdivision community. The 5.7-hectare development located in weekend destination Tagaytay integrates a private and exclusive residential enclave with a luxury resort set in a calm and peaceful environment. The first product offering is the residential enclave of Anya consisting of only 48 open lots averaging 400 to 450 square meters, with terrain that is flat to gently rolling. Lot owners have three tropical Asianinspired signature home designs to choose from. What makes this development unique is that a menu of resort and property management services shall

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be available to residents to be provided by the resort, such as private dining options and home spa services, efficient housekeeping and quickto-respond maintenance at your beck and call. They will also be able to enjoy the different facilities available at the resort and will have access to a village pavilion exclusive to the residents. “It is very boutique, very private, very peaceful. You don’t have to share the community with hundreds of residents. I think its very important distinctive feature is the personalized service it offers,” Monti Nilo, assistant vice president for operations, describes Anya Resort and Residences. Nilo says the company has initially invested around P200 million to P300 million to establish the project. One or two more phases would be added to the Anya development by the end of this year. But investments would be smaller than those in the first phase. “We might consider future

expansion so investments can go up. We are looking at several properties but these need to meet specific criteria for the next project to be called Anya,” he bares. In Sanskrit, the word Anya means something other than the ordinary; something that is boundless and extraordinary, peaceful and serene. “We can look at tourists’ destinations whether maybe in Baguio, Boracay, Bohol, Palawan, Davao and Pagudpud (Ilocos). We have also plans of developing boutique communities and (consider) low-density residential developments here in Metro Manila. We will see more of these towards the end of this year as we make announcement,” adds Nilo. On its own or in joint venture with other property developers, Roxaco has several projects ranging from the first-class residential resort communities like the Peninsula de Punta Fuego to open-lot residential subdivisions within the provinces of Batangas and Cavite. -- LG


Homeowners who are always on the go may no longer need to worry about security for their homes. A system will automatically alert them via mobile phone when it senses movement and they can hear what is happening in their homes. Another system can alert of possible fires before these can do serious damage.

JAO Builders introduces Smart Homes Parents abroad and those who often find themselves out of the homes working can now see their children playing or whatever they do through the CCTV remote monitoring system. Cameras are installed in chosen areas of their brand new home and images can be seen wherever they are via internet access. These add-on conveniences are made possible with a lifestyle technology incorporated into the homes being offered by JAO Builders and Development Corp., one of the top home building companies in the country.

Aptly called JAO Smart Homes, one can get an entire package of a digital security system, surveillance, satellite entertainment, internet connectivity and even improved kitchen and bathrooms integrated into the house the company is building for the owners.

Homeowners are given the choice of incorporating other techno-smart features into their soon-to-be-homes, including biometric access doors, automated garage door, time-activated lights, WiFi coverage, CCTV monitoring systems and luxury home theatre systems.

“Unlike others, they just construct the basic structure of the house; there is no so-called convenience and lifestyle. But for us, we already provide the homeowners of what they may need after the construction like video camera and doorbell with camera,” says Glorie Marie Molina-Sy, sales head of JAO Builders.

“These (technologies) are incorporated while the house is constructed. We provide convenience, security and lifestyle. We think all we can do to secure your homes, how to really able to have the convenience, and sort of lifestyle,” says Sy.

Apart from providing this lifestyle technology, JAO Builders is a one-stop shop for aspiring homeowners as it also assists them in bank financing, processing of building permits and even in application for an electricity service. “We are able to help you whether it is financing assistance, loans and documentation. Our architect will be able to help you in the design, our engineer in the construction and materials, and then we have interior designers who will be able to help you in the interior house design concept. So by the time you get into your house, it is already well furnished,” she adds. 35 | Real estate WoRld


Azure offers a beach-inspired vacation haven With leisure travel becoming increasingly pricey, it can be smart to live in a place that already gives you a beach-inspired vacation experience in the comfort of one’s house and right at the heart of the city. That option is now possible with Century Limitless’s azure Urban Resort Residences. Designed by the award-winning master planning and architectural firm Broadway Malyan, Century Limitless with its partner the Columbian Motors Group of Companies, the azure Resort Residences is a nine-building residential resort development sprawling in a six-hectare property located on West Service Road, Paranaque City. It houses a large scale man-made beach allowing dwellers to enjoy a vacation haven in one’s home with all the urban conveniences. the “beach” is nestled right outside every homeowner’s balcony, giving them a daily dose of resort experience. around this beach are myriad of resort-style amenities like a beach volleyball area, a barbecue pit, an open park, a Zen garden, multiple playgrounds, an interactive water play area, lap pool, outdoor picnic groove, central bar and basketball court. This humongous man-made beach has pristine Boracay-like white sand where residents could engage in various sports and leisure activities. In going to the man-made beach, one will be greeted by grand fountains at the entrance, a fitting prelude to the development’s iconic centerpiece. Beside the beach is a modern clubhouse that boasts of an array of urban amenities, such as a movie/THX room, functions rooms, two restaurants, a barbecue station, electronic play area, game room, a well-equipped gym equipped, and spa and massage rooms. Wanting to experience other urban comforts, the property is a stroll away from SM Bicutan. It is just eight minutes via skyway from Makati and alabang and eight minutes to NaIa Terminal 3 airport.

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azure has one, two or three bedrooms. Every building is designed to have 19 stories with roof top garden. almost all of the 735 units of its first building called The Rio, named after the famous beach destination Rio de Janeiro or River of January in Brazil, have already been sold. Rio exemplifies the project’s high regard for space, nature and conveniences. azure is a low density project, with only 20 percent of the six-hectare land will be occupied by residential buildings. The rest of the area will be allotted to open space, amenities, landscape, and a circumferential road around the property. santorini, the second building which took inspiration from a mystical volcanic island in Greece, continues to receive strong reservation sales for its 552 units.


RESA IMPLEMENTATION IN FULL SWING By Hon. Eduardo G. Ong , Ph.D DPA DBA Chairman – PRR - RES - DILG

The Real Estate Service Act of the Philippines (RA 9646), an act regulating the practice of real estate service in the Philippines was signed into law on June 29, 2009 and became effective after publication on July 30, 2009. It aims to recognize the vital Role of real estate service practitioners in the social, political, economic development and progress of the country. It intends to promote the real estate market, stimulate economic activity and enhance government income from real estate based transactions, thus, it shall develop and nurture a corps of technically competent responsible and respected Professional Real Estate service practitioners whose standards of practice and shall promote be globally competitive and shall promote the growth of the real estate industry. The implementing rules and regulations (IRR) after thorough consultations with the stake holders all over the Philippines became effective Aug. 9, 2010 after its publication that triggered the start of the full implementation of RA 9694.

The Professional Regulatory Board of Real Estate service (PRBRES) upon appointment by the President of the Philippines has buckled down into work and has divided the tasks into three (3) phases or stages. The First phase was devoted into consultation with the concerned stakeholders in the Real Estate industry. It dialogued with at least 25 Real Estate Organizations and national associations involved in the practice on the provisions of the RESA law. Inputs and suggestions were solicited invader to be able to craft a judicious, fair and equitable implementing rules & regulations (The IRR was finally approval by the commission on July 24 and became effective on Aug. 9, 2010 after its publication.) The Second phase focused on the implementation of section 20 of RA 9646 which was the “grand father clause licensing without examination.” Those qualified to avail of grand father clause are those duly licensed with Bureau of Trade Regulation & Consumer Protection (BTRCP) of the Dept. of Trade Industry as

Brokers, and Appraisers and Consultants. They are eligible for conversion to PRC license upon compliance of PRC requirements on licensing. Those who were able to procure their license with BTRCP – DTI but never renewed their expired licenses and those who took & passed the DTI Examination but never applied for licensing were also covered by the IRR of RESA. The concerned practitioners are requested to the PRE & PRBRES websites (www. prc.gov.ph and ResacB.d@ yahoo.com) and download the requirement for licensing a to date. The PRB-RES has licensed a total of 3,850 real estate practitioners. Those applications under Sec. 20 are still being accepted by the PRC until its expiration on July 30, 2011. The first PRC licensure examinations for Real Estate Brokers are scheduled on March 27, 2011. It is expected that a total of about 4,000 applicants all over the country will handle the licensure tests. The first licensure examinations for appraisers and consultant are also scheduled on May 29, 2011 where an estimated 1,000 would be – appraisers / consultants

are expected to a queue the line. The Third phase which will be a continuing process will be the Regulation and Development stage. The PRB-RES is reenacted by the law not only to license real estate practitioners but also to continuously supervise and regulate the real estate service practice which moved commence about the 3rd & 4th quarters of the year. The Professional Regulatory Board of Real Estate Service is determined to implement the provisions of RA 9646 and is very responsive on the pulse of the real estate service. It looks forward to a brighten Horizon for the practice in the years to come with highly competent and professional real estate service practitioners at the helm of the industry. Let us all be committed to a highly professionalized real estate service practice in the Philippines.

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The Retail Center You need not venture far to get everything you need for your family. a well-appointed retail center (Westgrove Plaza) lies just a few steps outside the village and houses Mercury Drug, The Skin & Spa, Southpointe Dance Institute, Kids Discovery Center (a pre-school) BPI and water refilling station aqua Best. Rustan’s Fresh supermarket and Paseo de Sta. Rosa are also a quick drive away.

About Ayala Westgrove Heights Developed by ayala Land Premier, ayala Westgrove Heights redefines the high-end lifestyle by bringing upscale living to the rolling terrain and valleys of Cavite. Blanketed by thousands of mango trees and surrounded by flora and fauna, the exclusive residential community offers the best of orchard living with all the modern amenities and practicalities of urban life.

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St. Benedict Church-Westgrove Exquisitely designed, the St. Benedict ChurchWestgrove stands offers spiritual comfort and a serene haven for residents of ayala Westgrove Heights. The church’s high ceilings, arches, courtyard and simple Mediterrenean-inspired interiors and façade recall the Subiaco monastery St. Benedict himself set up in Italy. Open spaces, a fountain, plants and greenery that surround the church also allow for meditative walks through pathways and the courtyard.


Ayala West Grove Heights

aCelebrationofCreativityandCommunity Good food, beautiful music, interesting stories, and even more interesting people—all these are the ingredients for an enjoyable night among old pals, new friends, and neighbors. Such was the recipe for ayala Westgrove Heights’ Night Festival—which saw residents of this close-knit community welcoming guests to the first monthly celebration of its twelve years—held at the highest peak of ayala Land Premier’s residential development in the South. the beautiful landscapes of the 400-hectare orchard community (the largest development in its category) provided the ideal environment for the evening, where guests enjoyed fantastic views complemented by delicious food especially prepared by Westgrove Height’s own foodies. In addition, the neighborhood’s canopy of mango trees, set against the sprawling natural features of Westgrove Heights became the perfect backdrop for budding photographers. “ayala Westgrove Heights has great amenities and beautiful green spaces to offer,” says Ms. Tracy Nieto, a resident of ayala Westgrove Heights . “But what stands out most in Westgrove Heights was the community—the people who live here. We saw how everyone interacted with one another, how it fostered a sense of community among neighbors that made it possible to share interests and passions with one another.”

Throughout the year, residents of Ayala Westgrove Heights continue to share their passions and creativity. The community continues to create many different interesting activities and organizations— from tennis groups for active residents and painting workshops for the artistically inclined to soccer or play groups for the kids. It is this very active community that adds to ayala Westgrove Heights’ vibrant landscape and defines the development’s distinctive neighborhood and lifestyle. Coupled with modern amenities, green open spaces, and a relaxing natural environment, ayala Westgrove Heights creates a nurturing environment for families who want nothing but the best for each member’s growth and development. “It’s truly a place where the spirit of community is alive and encouraged,” adds Ms. Nieto. “There is always something for everyone—be it weekend picnics, nature walks, basketball games—the list goes on. Beyond the many features and the relaxing natural atmosphere of Westgrove Heights, we’d also like to make each and every family feel like they are a part of a bigger family—the community itself.

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St. Scholastica’s College – Westgrove Guided by the Benedectine motto: Ora et Labora (“pray and work”), St. Scholastica’s College Westgrove offers the high quality of education characterized by the pioneering spirit of the Benedectine oblates. With a blend of traditional subjects with current ones, Scholasticans are trained to think independently and creatively. the sports Center has:

Sports Center Besides the facilities in the Main Clubhose of ayala Westgrove Heights, the sports Center provides additional areas for sports tournaments, friendly badminton or tennis matches or even for those who want to practice or to hone their skills.

Inside Ayala Westgrove Heights

Kidsgrove Clubhouse The Kid’s Grove is a well-appointed clubhouse with amenities designed and built especially for children. This amenity allows children to develop their talents and skills through different activities and through interaction with other kids and

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The Kid’s Grove provides: • a kids’ swimming pool • a wet play area • children’s play area • junior basketball court • skating rink • Multi-purpose hall

• indoor badminton courts • indoor tennis courts • social hall For Future Development • lapping pool and kiddie pool • indoor basketball court • game room • spa and wellness center • playgrounds and picnic areas


Main Clubhouse The Clubhouse at ayala Westgrove Heights not only provides a conducive place for forging new friendships with neighbors and strengthening old ones, it also offers areas for various physical and recreational pursuits.

The Main Clubhouse provides:

Orchard Park South

• a swimming pool with a Jacuzzi • indoor basketball courts • outdoor tennis courts • soccer field • children’s play area • fitness gym • 6-hectare Central Park with man-made lagoons • tree-lined jogging and biking paths • picnic areas • social hall

This wide expanse of greenery that is decorated with different species of trees, landscape and gazebos offer shade and resting areas.

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BELEGUERED PRESIDENCY By SONNY PULGAR

Upon the convocation of the Constitutional Commission of 1986, its first order of business was to emasculate the Executive Department. The commission’s leading figures were one in saying that they were not oblivious of the teachings of history. They were not called to repeat the tragedy of martial law that has made democracy an exception rather than the rule. Once settled, Cory aquino’s soul mates went on to overhaul the 1935 Charter and came out with what Max Soliven dubbed the “most verbose Constitution there is.” The Commission, wary of another homegrown dictator, clipped the powers of the President. the power to declare martial law was diminished forbidding the President from padlocking Congress and categorically allowed the latter automatic review. Its declaration, including the less draconian suspension of the writ of habeas corpus, is made subject of, not only legislative oversight, but also judicial scrutiny. the power of appointment was delineated. even its power of control and

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supervision over executive departments and local governments were diluted. In sum, the presidency’s power to enforce the law does not depend on the conscience of the executive because history taught us that there are presidents who have no conscience. Cory, in all her good faith or naïveté, gave the Judiciary the all encompassing power of judicial review. The President implements the law alright, but the Courts breathe down his neck. The two houses of Congress have been humiliated as well when by the slight invocation of executive privilege in case of a government official or right to privacy in case of a private individual, their power to inquire grinds to a halt. let the two giants of the Executive and the legislative tangle in the arena of political passion for all we care so long as the dispassionate Court looks in amusement and later disquisition. Politics anyway is their raison d’etre. The Judiciary from the point of view of the weary commissioners of Cory aquino can be relied on as the umpire,

in all climes and times, of righteousness. this unelected branch has the potential of being the conscience of the nation, or so they thought. Justice Roberto Concepcion advanced his invention that is the Judicial and Bar Council. He said that he had seen all his life the influence of politics in the appointment of judges and justices in the sieve that was the Commission on appointments. thus, his first order of business was to insulate the review of appointments to the judiciary away from prying eyes of Congress. as things now stand, the Judiciary is an island by itself that can track its own destiny. The Davide Court has declared the impeachment proceedings against Chief Justice Hilario davide unconstitutional. still, the davide Court shepherded Republic act 9227 authorizing a further increase in filing fees to be used as “special allowance for Justices and Judges” (saJ). as of November 2006, saJ effectively doubled the judicial


We saw it in the League of Cities case. The “elective-appointive” distinction case. The most telling ruling amounting to culpable violation of the constitution was when the midnight appointment of Justice Renato Corona vice Chief Justice Reynato Puno was upheld by its majority despite the clear language of the Constitution.

Upon the convocation of the Constitutional Commission of 1986, its first order of business was to emasculate the Executive Department. The commission’s leading figures were one in saying that they were not oblivious of the teachings of history. They were not called to repeat the tragedy of martial law that has made democracy an exception rather than the rule. Once settled, Cory aquino’s soul mates went on to overhaul the 1935 Charter and came out with what Max Soliven dubbed the “most verbose Constitution there is.” The Commission, wary of another homegrown dictator, clipped the powers of the President. the power to declare martial law was diminished forbidding the President from padlocking Congress and categorically allowed the latter automatic review. Its declaration, including the less draconian suspension of the writ of habeas corpus, is made subject of, not only legislative oversight, but also judicial scrutiny. The power of appointment was delineated. even its power of control and supervision over executive departments and local governments were diluted. In sum, the presidency’s

power to enforce the law does not depend on the conscience of the executive because history taught us that there are presidents who have no conscience. Cory, in all her good faith or naïveté, gave the Judiciary the all encompassing power of judicial review. The President implements the law alright, but the Courts breathe down his neck. The two houses of Congress have been humiliated as well when by the slight invocation of executive privilege in case of a government official or right to privacy in case of a private individual, their power to inquire grinds to a halt. let the two giants of the Executive and the legislative tangle in the arena of political passion for all we care so long as the dispassionate Court looks in amusement and later disquisition. Politics anyway is their raison d’etre. The Judiciary from the point of view of the weary commissioners of Cory aquino can be relied on as the umpire, in all climes and times, of righteousness. this unelected branch has the potential of being the conscience of the nation, or so they thought. Justice Roberto

Concepcion advanced his invention that is the Judicial and Bar Council. He said that he had seen all his life the influence of politics in the appointment of judges and justices in the sieve that was the Commission on appointments. thus, his first order of business was to insulate the review of appointments to the judiciary away from prying eyes of Congress. as things now stand, the Judiciary is an island by itself that can track its own destiny. The Davide Court has declared the impeachment proceedings against Chief Justice Hilario davide unconstitutional. still, the davide Court shepherded Republic act 9227 authorizing a further increase in filing fees to be used as “special allowance for Justices and Judges” (saJ). as of November 2006, SaJ effectively doubled the judicial salaries. Justice Gregory Ong’s appointment to the High Court was stopped on its tracks by the Puno Court. the ombudsman was ordered to conduct criminal investigation against the Chairman of the Comelec, a co-equal constitutional body. all these were never lost to the predecessor

of President Noynoy aquino. she saw the interplay of the three branches of government and by pushing the right button, a mark of cunning and intelligence, she can personally use it to the hilt. Was she a victim of the Courts? In a closely divided Supreme Court her constitutional initiative was log rolled by Justice Tony Carpio. Her invocation of the much lamented executive privilege via an executive order wrangled by the besieged Romy Neri before the Blue Ribbon stymied the Committee momentarily but clinched a modified High Court ruling that the privilege as invoked is not absolute. Nonetheless, in a sexedup ratio, the supreme Court allowed Neri to zip up on some esoteric judicial fiat that the President has the peculiar right to implement the law and thus has some right to confidentiality, or whatever that means. She saw her majority in the High Court ebbing. With the power of appointment, she tried to spirit in a dyed-inthe-wool gofer, agnes devanadera. she was however foiled by what remains of genteel members of the JBC. Devanadera, with nary delicadeza in her veins sat 43 | Real estate WoRld


PH leads in breakthrough eco-active paint technology

Oscar Sanez, CIPS Business Processing Association of the Philippines (BPAP) CEO Oscar Sanez

The BPO industry:

An eco-active technology And with a breakthrough pushes the green concept one paint technology, the Philippines step further by going beyond not is now a pioneer in eco-active just damaging the environment technologies. but by actually helping make the Boysen KNOxOUT is the first environment better. In the case air cleaning paint in the world of air pollution, this would be with CristalActiv photocatalytic something that could actually The business process outsourcing (BPO) industry is big news technology. the Strategic Road uses Map, which KNOxOUT noxious today and it will even be bigger take in the future.air pollutants out to ultrafine according to Sanez, underscores titanium dioxide help clean the air. the value ofnoxious strongerairpartnership to break down These were the very confident words of Oscar Sanez, Business with the government. “’Eco-active’ Processing Association of the Philippines (BPAP)technologies CEO after spilling pollutants like nitrogen oxides go beyond sustainability towards (NOx) into substances. out figures on the industry’s growth and employment performance “Theharmless BPO sector enjoyed being active instruments against in the last ten years. The latest figures of which resulted in the massive support from the When applied, it effectively air pollution,” says Johnson displacement of India by the Philippines as the world’s call center transforms government during the previous any painted surface Ongking, vice president of Pacific capital. intoadministration an air cleaner.in terms Paint (Boysen) Philippines, Inc. of addressing supply-side “It’s not just being about ‘good challenges of the sector”, Sanez for the environment’ where the Rosy prospects details. According to him, the best you can do is not cause scholarship grant by the Arroyo Since its inception in 2000,any the harm BPO industry has been to the environment. Administration under the PGMA performing remarkably well, Sanez details, that itlessening came as no It’s about actively Training for Work Scholarship surprise that it is now the biggest private sector employer and the harmful smog that causes health program to near-hires, the young second largest foreign exchange earner, next only to overseas problems.” graduates who have tried but Filipino workers’ remittances. failed to secure employment In 2010, the industry employed over 500,000 workers and due to lack of certain skills, generated about $9 billion in export earnings. Last year was a has significantly improved the record year, with annual growth hitting 23 percent, the industry’s recruitment rate of these nearall-time high, relates Sanez, adding that the outsourcing sector hires. contributed seven percent of the country’s gross domestic product The growth targets are (GDP) last year. hinged on the assumption that As rosy as the 2010 figures already are, the future seems to the government will continue hold even greater promise for the BPO industry, with Sanez claiming to support the outsourcing that the industry’s potential for growth is stronger. The industry is industry. projected to grow by 15 percent to 20 percent in the next five years. “We certainly need the By 2016, the industry’s revenues are expected to hit $25 billion government to improve the with 1.3 million workers. In 2011, the industry is targeting $11 quality of education and effect billion in revenues, a 20 percent increase from the previous year. curriculum changes aligning it to the demands of the outsourcing industry to narrow the huge Industry roadmap talent gap,” notes Sanez. “We Anchoring the industry’s growth targets in the next five years is

Fueling the country’s economic growth

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also would like the government to further enhance the business environment and expeditiously enact the ICT bills to attract more investments in the sector.” The BPO industry also needs strong government support in marketing and promotion to penetrate new markets and make inroads into non-voice BPO.

Positive economic impact The vibrant growth of BPO sector hugely benefits the whole economy, as the sector generates immense multiplier effects. Sanez points out that the industry has been a growth anchor to many industries, particularly the telecommunications and the real estate sectors. “We are happy that the telecommunication companies are serving the ICT infrastructure needs of the sector,” relates Sanez. “We are the telcos’ major client so our growth significantly contributes


The Air Cleaning Paint

“We are happy that the telecommunication companies are serving the ICT infrastructure needs of the sector,”

to their growth”, he adds. The BPO is also revving up the real estate sector. In 2010, the expansion of the BPO industry translated to the rental of 250,000 to 300,000 square meters in office spaces. “We are the biggest core business of many property developers,” relates Sanez. “The McKinley Hill was the first to cater to the needs of the BPO sector and now a lot of property developers are following suit, such as the Megaworld, Ayala Land, and Robinson’s Land, among others”, mentions Sanez. “Aside from setting up the necessary business infrastructure in their techno parks, they are providing workers a very convenient workplace nestled in live-workplay communities.” Through the billions of wage income it provides, the BPO indirectly benefits other sectors as it fuels consumption of a wide range of goods and services. According to Trials in London, Paris and the Sanez, more than half of the Guadalupe MRT Station in Manila have industry’s revenues are spent consistently showed the effectiveness on wage income. of the technology in decreasing levels of Given the economic NOx, a principal component of smog. benefits of the sector, the BPO This breakthrough technology is leader reiterates the need for the result of the partnership between a better policy environment CristalGlobal, a worldwide provider of so that the industry targets ultrafine titanium technology and Pacific can be met to support the Paints (Boysen) Philippines, the number overall economic growth of the one paint brand in the country. country. “It’s an honor for Boysen Paints to

be the first company in the world to launch a paint with CristalActiv technology,” said Johnson Ongking, vice president of Pacific Paint. “This makes the Philippines the leader in fighting air pollution through innovative eco-active technologies.” The business case to go green is clear enough – especially for a generation that has been taught to separate plastics from paper. But the worsening environmental degradation is telling us that the old paradigm of ‘reduce, re-use and recycle’ to reduce our environmental footprint is not nearly enough anymore. It’s time for businesses to take note of new technologies that actually improve the environment: to go eco-active, says Ongking.

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PH leads in breakthrough eco-active paint technology An eco-active technology pushes the green concept one step further by going beyond not just damaging the environment but by actually helping make the environment better. In the case of air pollution, this would be something that could actually take noxious air pollutants out to help clean the air. “’Eco-active’ technologies go beyond sustainability towards being active instruments against air pollution,” says Johnson Ongking, vice president of Pacific Paint (Boysen) Philippines, Inc. “It’s not just being about ‘good for the environment’ where the best you can do is not cause any harm to the environment. It’s about actively lessening harmful smog that causes health problems.”

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And with a breakthrough paint technology, the Philippines is now a pioneer in eco-active technologies. Boysen KNOxOUT is the first air cleaning paint in the world with CristalActiv photocatalytic technology. KNOxOUT uses ultrafine titanium dioxide to break down noxious air pollutants like nitrogen oxides (NOx) into harmless substances. When applied, it effectively transforms any painted surface into an air cleaner.


The Air Cleaning Paint

Trials in London, Paris and the Guadalupe MRT Station in Manila have consistently showed the effectiveness of the technology in decreasing levels of NOx, a principal component of smog. This breakthrough technology is the result of the partnership between CristalGlobal, a worldwide provider of ultrafine titanium technology and Pacific Paints (Boysen) Philippines, the number one paint brand in the country.

be the first company in the world to launch a paint with CristalActiv technology,” said Johnson Ongking, vice president of Pacific Paint. “This makes the Philippines the leader in fighting air pollution through innovative eco-active technologies.” The business case to go green is clear enough – especially for a generation that has been taught to separate plastics from paper. But the worsening environmental degradation is telling us that the old paradigm of ‘reduce, re-use and recycle’ to reduce our environmental footprint is not nearly enough anymore. It’s time for businesses to take note of new technologies that actually improve the environment: to go eco-active, says Ongking.

“It’s an honor for Boysen Paints to

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PALAFOX Felino A. Palafox

Principal Architect and Urban Planner

Redefining the Good Life Palafoxassociatesliesin architecture,UrbanPlanning, MasterPlanning,andSite Planning.Withthediversification asastrategyforthefirm’sgrowth andcompetitiveness,ithas branchedouttoincludeProject developmentstudies,Interior design,landscapearchitecture, and engineering. 48 | Real estate WoRld


CAMP NETANYA Anilao, Batangas

Camp Netanya is the newest exclusive dive resort located along the shores of Mabini, Batangas.

entrance lobbies, and the grand staircases lead to the villas for more privacy.

It features a 30-meter change in elevation from the road to the sea level, a Greek-Mediterranean inspired building shell, light colored walls, an infinity pool and an unobstructed visual connection to Balayan Bay.

Camp Netanya employs Greek simplicity in a tropical leisure space-cum-diving school and resort.

It is situated on a steep one-hectare lot which offers incomparable design possibilities. the resort, which opens to the sea, is activity oriented. Communal spaces welcome visitors at the

THE REDEVELOPMENT OF MANILA POLO CLUB Makati City

The Centennial Renewal Project of the Manila Polo Club focuses on heritage even as it updates the Club to cater to the modern needs of members. The project includes the redesign of major entrances, the creation of a memorable visual corridor, the improvement of clubhouse facilities, the introduction of round-the-clock multi-use facilities, and the revitalization of the equestrian village as a response to the articulated tastes and preferences of club members. Its internal spatial growth incorporates the existing vegetation by working around them.

It is a stepped development that sprawls towards the shore – a fresh concept in resort-making and an original architectural landmark.

and homeliness, safety, security and cleanliness. Due to increasing membership, the Manila Polo Club upgraded facilities and services through added function rooms, modern kitchens, etc. The Club’s commitment to saving the environment is evident when it refrained from cutting a century-old tree and turned it into one of the club’s main attractions. There is also a clerestory to allow natural lighting and cross ventilation as a means of resource conservation, thereby minimizing the usage of electricity.

This project seeks to recreate the old-world ambience of a cross-generational, environment-friendly equestrian club characterized by accessibility, connectivity, walkability, warmth

TZU CHI SCHOOLS Bam, Iran

Built after an earthquake that devastated Bam, Iran, the tzu Chi school provides hope for an earthquakeprone community utilizing a symbolic approach to its “active man concept” through education. Visual stimulus is achieved through the harmonic interplay of Persian, assyrian-Christian and Ionic Greek architectural styles. The unique collaborative design manifests a high regard for

the culture and traditions in the area, architectural aesthetics, and the site’s historical importance. This authenticity is complemented by the use of locally available concrete, glass and bricks in all three major structures which include the entrance feature, school buildings and the landscaped activity spaces. The school complex features wind towers that act as air catchments to cool the building during hot days, while walls are oriented towards the winter sun to provide warmth within the structure during colder months.

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NOVARTIS CORPORATE HEADQUARTERS REDEVELOPMENT Makati City

The redevelopment of the Novartis Corporate Headquarters building is in alignment to the present day status of the organization. As the number one pharmaceutical company in Europe, the design for the Novartis building should make a strong statement of being contemporary while creating the ambiance of accessibility and inclusion. Highlights of the design include transferring the lobby to make it face the major roads, thereby creating a commanding entrance. There

are three additional entrances, and an increased floor area provides more open planning in the interiors. The design makes use of light colors with accent to enhance the ventilation coming from the roof garden. Curtain walls also bring in ample sunlight and serve as windows for indoor-outdoor visual connection. A challenge for this project is to implement the renovation without moving out the tenants.

PASEO DEL RIO

Pasay City

Cagayan De Oro City The Shrine of Jesus is part of the masterplanned community of the SM Central Business Park. This structure represents the culmination of an urban planning initiative to integrate places to live, work, play and worship within a single walkable community. The church is well-oriented to the wind path, allowing cross ventilation inside. Romanesque-inspired, the Shrine of Jesus stands as

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a dramatic structure on a seaside area in Metro Manila. The Shrine has a seating capacity of 580 persons, and has a floor area of about 1,400 square meters standing on a 2,900-square meter lot of the reclaimed part of Manila Bay. This structure with perfect symmetry is an embodiment and celebration of Filipino religiosity. The design services for the Shrine of Jesus is a donation of Palafox Associates to the Catholic Church.

Cagayan de Oro has emerged as one of the top destinations for the country’s outsourcing industry, and the 12.5-hectare Paseo Del Rio complements the rapid urban growth of the city by integrating multi-use development components, environmental sustainability and riverfront development principles to achieve balance between the built and natural environment.

A plethora of mutuallysupporting and revenueproducing uses are incorporated in the master plan. A high-rise hotel with a 3,000-person capacity convention center – both overlooking the Cagayan River – plus retail spaces, an I.T. Park for BPO offices, lush landscaping and pedestrian promenades create an idyllic foreground for 24-hour- cycle activities.


NUEVA ECIJA PROVINCIAL CAPITOL Palayan City, Nueva City

The master plan for the civic center of Nueva Ecija, the rice granary of the Philippines, includes a provincial capitol, coliseum, a track oval, and auxiliary spaces. The focus of the master plan is the development of the provincial capitol. The Neo-classical design of the provincial capitol serves as a symbol of power while inducing a pride of place. The design is consistent with the purpose of the institution, i.e., to provide good governance and exercise democracy through the proper interrelationship and zoning of spaces. In accordance with the local government unit’s thrust, the design likewise dismantles barriers that may exist among local agencies; creates a façade that evokes political will and strong leadership; and sends a message of community and accessibility where people can be one with their government.

PROJECT FIRST HOME Antipolo City

The construction of a first home is always an exciting challenge for Palafox Associates plays a key role in guiding the owner from site selection to construction. The three-level house, which was featured in a Philippine reality television show, has a contemporary tropical design. The compact design ensures the efficient use of energy. Large tinted glazing filters sunlight while aluminum fins on the windows not only provide sunshade but allow air to flow to the interiors.

QATAR EMBASSY Makati City

Qatar has the second highest per-capital income in the world, and this is reflected in the elegant design of the Qatar Embassy. It makes use of Middle Eastern architectural elements such as domes and arches while ensuring its suitability to the Philippine context. The design is further enhanced by the articulated top of the building inspired by the Banaue Rice Terraces. Awarded the grand prize by the Qatar Embassy, the design of the complex encourages smart urban living, with facilities for retail and commercial activities, hotel and condominiums, among others.

SM SOUTHMALL Las Piñas City

Touted as the best among SM malls, SM Southmall is also the firm’s first project with SM. The structure incorporates a welcoming façade adorned with curves. This is the first time that the mall incorporated an unusual curvilinear shape, apart from the box-type.

ROBINSON STARMILLS

Pampanga

Robinsons Starmills provides convenience through proximity by locating it up north in the festive Paskuhan Village of the province of Pampanga. Four gates welcome shoppers into the mall, each with a specific natural theme like mountains,seas, plains and wildlife.

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QUEZON CITY MUSEUM Quezon City

The Quezon City Museum, home of the city’s historical artifacts, is an epitome of sustainable design. The design preserves the trees in the site to create a building with minimum impact on the natural environment. Lush greenery covers the location and helps provide shade in paved areas. The green roof of the proposed museum is designed to achieve insulation for the building and consequently, bring down the temperature inside the shell to minimize dependence on air-conditioning. Interior courts will be landscaped with existing trees to make museum visitors conscious of nature, and the exterior is treated with green walls to further cool the building. It has an organic form that integrates the structure with its surroundings.

ROCKWELL CENTER Makati City

This urban regeneration project is located within a city where the highest levels and most progressive visions of urban life have been achieved. A safe and convenient pedestrian and vehicular circulation system establishes connectivity. Rockwell Center redefines progressive design and development planning in the Philippine context by converting a brown field housing a former power plant into a very active world-class waterfront development. This master plan strategically links residential, commercial, institutional, recreational, leisure, office and religious spaces to minimize the need for transportation. A safe and convenient pedestrian and vehicular circulation system establishes connectivity. The family of buildings and the dialogue between them is felt even from afar. Sidewalks lined with landscaping as well as shades and head buffers decrease the temperature, making walkability comfortable. The master plan includes the design for the first five residential towers in Rockwell Center and features architecture with exciting building footprints and forms: double glazed windows for heat and noise insulation, identifiable spaces, increased street connectivity and 49% open space – making Rockwell a pace-setting, environmentally-sensitive master planning project.

Rizal Tower Dominating the Rockwell Center skyline is the 46-storey Rizal Tower. With a total of 157 residences apportioning almost 90% of the project to three-bedroom units, this oval-shaped skyscraper’s target market of high income, medium-sized families will surely appreciate the irregular-shaped rooms. Consistent with the contour, the oval design provides an 180-degree full view of the immediate vicinity. Smooth surfaces and highly reflective double-glazed windows make Rizal Tower a one-of-a-kind landmark in a place of technically innovative andmark structures like the Rockwell Center.

Amorsolo Square Amorsolo Square is a residential establishment which features 52 | Real estate WoRld

two towers connected by the three-level Rockwell Club. The 280 units of Amorsolo Square respond to the need for a withinthe-CBD residence, bringing residents closer to their places of work.

tiles running through its clean surface and discreet curves. This residential tower features underground levels for parking, loading, docking and maintenance. The upper five floors feature extended balconies that provides an unobstructed view of the Hidalgo Place picturesque Makati skyline, while the lower floors with Hidalgo Place boasts of smaller balconies give a a heavily-glazed elevated perfect panorama of the scenic structure with wave-like surfaces. Its symmetric footprint lush landscape below. Luna Gardens features a structural asserts a sense of tradition system that allows twisting and formality contrasted when there is seismic activity and softened by undulating and provides wind channeling canopies and balconies along during the typhoon months, graceful curves. Hidalgo Place has only 91 units but residents, thus minimizing the destructive effects of natural forces. mostly composed of families, enliven this activity-filled 24-storey development project.

Luna Gardens The majestic 39-storey Luna Gardens is characterized by a deep blue color accented by horizontal white mosaic


SULTAN HASSANAL BOLKIAH MASJID Cotabato City

Rising on a five-hectare prime land in Cotabato City is a place of worship that will be part of the Islamic Civic Center in the Philippines. The Masjid features 14 majestic gold domes. Its grand feature is the four minarets soaring up to 40 meters high. Inside the main worship center will be two prayer rooms called the haram, with the bigger one able to accommodate up to a thousand worshippers, while the smaller haram can accommodate 400. Latticework with an eight-meter high grand ceiling separates these two prayer rooms that will be illuminated by chandeliers at night, while natural light will seep through the design of the domes during the day.

the main prayer room. To the right is the Imam’s room while the administration office is on the left. Two spacious courtyards called sahn flank these prayer rooms. The courtyards are surrounded by arcaded hallways called riwaqs where the main ablution areas are located. As the largest edifice in the vicinity, the Masjid complex will become the landmark for worship. This structure is built on a ground podium elevated two meters high. Ascent is possible from three sides by two grand staircases in front, four side staircases on the left and the right, and two pedestrian ramps strategically located at the front corner.

The mihrab which faces Mecca is located at the center fronting

THE DEVELOPMENT BANK OF THE PHILIPPINES EXECUTIVE OFFICE BUILDING

quality (ASHRAE compliance), (LCA) Life-Cycle Assessment in the building among many other functions (carbon dioxide buildup, fire protection, distribution, etc.).

Council and many other green movement organizations to assist in the design and development of greener or completely green structures.

(k) Thermal Comfort – to achieve lower interior temperatures, the building will be applied with double glazed low-emissive glass, green roofing on almost every floor especially on the topmost floors and green walls.

Global City, Taguig Upon completion, the DBP building will set the pace for the rapidly-developing Fort Bonifacio Global City, its green and iconic twisting tower with revolving reflections indicative of dynamic energy. The gyrating glass forms connote motion, movement and momentum – characteristics identified with finance, trade and commerce. The principle of forceful energy conservation is eminent through the integration of green walls, solar panels and sloped ceilings in the design. The interplay of horizontal and vertical lines maximizes the view and the use of light.

Ever since we could remember, the greening of a building may increase the cost of designing and constructing a building for up to seven (7) times – crude estimate. And this is due to a lot of reasons: (a) Site – Fort Bonifacio in Taguig is a prime location. Many important factors were considered in the design process like Transportation and Amenity Analysis. (b) Size – The lot area is considerably small which made the design of the building slender.

Visual clarity, space readability and a very symmetric design gives this mixed-use building a formal look.

(c) Form – The slenderness of the building required improved stability and special supports for the upper floors.

“Greening” a building has now become quite a demanding necessity not only in the architectural world but also in the built/construction industry. This is one of the many countermeasures of national governments to prevent the onset of global warming which is predicted to take place (in an irreversible state) by 2050. The present generation is indeed very lucky to have institutions like the US Green Building

(d) Structural – The concrete mixture required a per square inch strength of 10,000 Pa. The upper floors needed an outrigger (situated on the twenty-first (21st) and twentysecond (22nd) floors) to further support the superstructure. (e) Sustainable Characteristics – Provisions for improved efficiency in the use of the building utilities, which will affect it in the long run of operation. This includes the

water, lighting, and ventilation, which contribute largely to energy efficiency. (f) Sources of Renewable Energy – Since the ultimate goal of a green structure is to lessen the energy requirements and to tap renewable sources the building was designed with solar panels. (g) Innovative Fixture – the use of energy efficient lighting fixture include LED (light emitting diode) bulbs; the use of water efficient plumbing fixture; the use of VAV (variable air-volume) mechanical aircooling; all of which entails a one-time big investment but will provide significant savings in operation as the building is being used. (h) Water Efficiency – A storm water management strategy will be employed in the design which requires green technology and careful planning. (i) Improved Daylighting – the design of the interiors allow maximum daylight to penetrate the spaces within and this requires a unique ceiling profile with its corresponding unconventional ceiling support requirements. (j) (BAS) Building Automated System or (BMS) Building Management System – a revolutionary technological advancement that allows monitoring of the indoor air

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a Glimpse into the new Makati Central Business District

THE AYALA CENTER IS ABOUT TO BE REBORN

The ayala Center is about to be reborn. The complex, already known for its progressive nature and constant evolution, has been the foundation of Makati’s growth as a thoroughly modern city. Now, ayala Land, Inc. is about to unveil a PhP 20 billion plan to redefine the Central Business District.

The Makati CBD is not just a commercial and business center In response to a Shook Kelley study, aLI designed a whole new blueprint for the ayala Center. For over six decades, the Makati Central Business District (MCBD) has been the metro’s premier business and commercial destination, playing a lead role in the modernization of the country. However, ayala Land recognizes that the evolution of the ayala Center has brought with it a new purpose. Today, it is already an entire microcosm, combining the elements of work, play, and home. More and more people are deciding to call Makati home, and in the interest of serving this burgeoning population, new prime residential areas will be created. In a growing community, connectivity and accessibility will be of paramount importance. To 54 | Real estate WoRld


assist in the mobility of the people, the transport framework will be greatly improved. additional gateway structures will be constructed and integrated into the current public transport system. and as a boon for commuters, a revolutionary Bus Rapid Transit (or BRT) system will be implemented, one that accesses the entire CBd from other vital parts of the metropolis. this new scheme will combine the quality, speed, and efficiency of a railway line with the economy of a bus system: a win-win situation for all passengers. The ayala Triangle Gardens opened to great fanfare almost a year ago. This year, expect a bigger splash as the famed light and sound show returns. Created to bring nature and relaxation amid the urban energy, the Gardens are a haven of tranquility and rejuvenation. Not only is it a park, it is also an event venue, and soon, it will provide great dining options for any time of day. ayala Land is set to establish a comprehensive pedestrianization program. this provides an approach that supports the tenets of the redevelopment of the Central Business district. The current underground walkway system will be complemented by alternative routes and avenues especially conducive to walking. This matrix will enable people to bypass traffic, as well as encourage an efficient, healthy, and

environmentally sound method of getting around. Reinforcing strengths supporting all of the developments are continued investments in the corporate sector. a new ultramodern hotel row will be built, guaranteeing tourists and business travelers the best of world-class amenities. also, new businesses will be established, by way of BPOs. “In line with the lifestyle developments, we also have in place the framework for future investments,� states Meeann Dy, ayala Land’s Group Head for the Strategic Landbank and Management Group ). all of these measures will ensure the continued progress of the city. ayala Land helped build Makati through business and it will continue to be a leader in this industry for the foreseeable future. The new Makati CBD promises to make the city a true hotbed of forward-thinking Filipinos who value an accomplished career and an active, diverse lifestyle. The city is poised to set new standards of business, living, and entertainment, centered on a foundation of accessibility, connectivity, and sustainability. In building the framework for this future vision, Makati wants to be known as one of the best cities worldwide.

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The Makati Central Business District KicksOffaRedevelopmentPlanforthe Country’s Premier CBD 2010 marks the start of several developments that are about to redefine the Makati Central Business district. these are changes that will transform the area into an ideal urban enclave, a microcosm of the new Makati, to serve the enlightened citizens of the metro. ayala Land, Inc. has always strived to be at the head of progress. This passion is reflected in the history of the ayala Center. The upcoming redevelopment plan is another stage in that history; it is a significant stage and it indicates the continuing commitment of the company to the center of its foundation. The idea is to create a truly modern, fully integrated and progressive city in the heart of the capital. Working with the local government, ayala land has outlined several areas of action that will spearhead the entire project. These landmarks signal the growth of Makati as a complete city that offers not just the country’s premier working opportunities and commercial outlets, but also pristine residential and leisure options. as this growth continues rapidly, connectivity and accessibility have become of paramount importance. The ayala Center will feature a comprehensive reimagining of the concept of mobility within the city.

Realizing the Vision the redevelopment plan focuses on the following: 1. New restaurants will open at the ayala Triangle Gardens, providing a unique dining experience within the tranquil spaces. 2. The MaCEa streetscape will be developed to offer a visual treat befitting a modern complex. 3. New gateway projects such as MCBD North and South will be erected to further improve connectivity to the rest of the metro. 56 | Real estate WoRld

4. a revolutionary Bus Rapid Transit system, the first of its kind in the country, will be installed. This system combines the speed and efficiency of a railway transit with the cost reductions of buses. 5. The continued efforts to pedestrianize ayala Center will be emphasized to encourage residents and visitors to explore the areas without traffic congestion.


6. To serve the growing influx of residents, a new prime residential address within ayala Center will be defined. this premier address will feature an optimal location in the middle of the business and commercial districts. 7. Expansion of retail doors will be a way to all empowered consumers. 8. Serving tourists and business travelers has always been a forte of the ayala Center, and the addition of a Hotel Row will only add to this strength. 9. Makati is still keeping focus on the business world. thus, BPos will further enrich the current roster of industries

10. a new gateway to the ayala Center will be unveiled to welcome the public into the new Makati. as this year is ending, the machinery has been put into motion. The brand new Makati Central Business district, looming over the approaching horizon, stands as a new beacon to the upward mobility of the country, and is poised to set the new standard of Filipino living for years to come.

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Manila F.A.M.E International is the second longest-running trade platform for home and fashion lifestyle products in the Asia Pacific and the only Union des Foires Internationales (UFI) recognized trade fair in the Philippines.

April Manila FAME International: Fact Sheet

Edition : Venues : Exhibit Hours: Organizer :

opens this March Support Organizations :

In the ASEAN furniture circuit, the Manila Now Philippine International Furniture Show (PIFS) stands as one of the must-see furniture shows of the region. As one of Asia’s design centers, the country has long been considered the “Milan of Asia” for the quality, creativity and diversity of its furnishings that have long been sought by buyers of furniture and connoisseurs of excellent design.

Exhibitor Profile :

This year Manila Now PIFS is again at the forefront of design as it renews its aggressive desire to be leader of the furniture design industry of Asia. Re-scheduled to a more convenient date, the event will run from March 3 to 6, 2011. The change in date makes it convenient for furniture buyers to make the Philippines one of their first stops in the ASEAN furniture circuit this coming year. Manila Now PIFS 2011 will be held at one of the biggest exhibition venues in the Philippines— the SMX Convention Center. The 46,647 square meter exposition hall ensures more space for bigger exhibition booths, as well as enough room for visitors and guests to enjoy one of the biggest furniture and design expositions in Asia. As one of the biggest and most important furniture and design expositions, Manila Now PIFS 2011, encourages visitors, buyers and exhibitors to partake not only of the Filipinos’ creative genius but also his warm hospitality that makes Manila Now PIFS truly unique. – Manila NOW website

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Manila FAME website

Visitor Profile :

Special Buyer Programs :

53rd edition SMX Convention Center, Pasay City, Metro Manila, Philippines, 16-19 April, 9am to 6pm Open to trade buyers (FREE) 18-19 April, 11am to 4pm Open to general public/visitors (with entrance fee of Php200.00) Center for International Trade Expositions & Missions (CITEM), Philippine Department of Trade and Industry (DTI) - Association of Negros Producers (ANP) - Christmas Decor Producers and Exporters Association of the Philippines (CDPEAP) - Chamber of Furniture Industries of the Philippines (CFIP) - Cebu Furniture Industries Foundation (CFIF) - Cebu Gifts, Toys, and Houseware Manufacturers and Exporters Association (CEBU-GTH) - FAME foundation Philippines, Inc. - Home Accents Group of the Philippines, Inc. (HAPI) - Philippine Chamber of Handicraft Industries (PCHI) - Mindanao Trade Expo Foundation Inc. (MTEFI) - Philippine Exporters Confederation, Inc. (PHILEXPORT) - PHILEXPORT - Pampanga Chapter - PHILEXPORT - Cebu Chapter - PHILEXPORT - Davao City Home Interiors Arts and Crafts | Bed and Bath | Christmas & other Holiday Decorations | Boxes | Festival & Party Articles | Furniture | Garden Accessories | Gifts & Premium | Handmade Paper Products | Houseware & Home Decor | Kitchen & Tableware | Lamps & Lighting | Mirror & Picture Frames | Stationery & Desk Accessories | Toys, Games, & Dolls | Votives & Candles Fashion Wearables Costume Jewelry | Fine Jewelry | Leathergoods | Footwear Health and Wellness Natural Personal care Products | Spa Products | Votive Candles Visual Arts Paintings| Framed Pictures| Sculptures New Sector: One-of-a-kind, limited edition merchandise Exhibitor Profile by Business Type Direct Exporter, Manufacturer, Trader, Exporter, Trade Association, Indirect Exporter Overseas and local trade visitors representing importers, wholesalers, distributors, trading firms, merchandising agents, buying offices, retailers and department stores, mail-order houses, architects, designers, specifiers, developers. The show's top country markets are: (1) USA, (2) Japan, (3) Australia, (4) Hong Kong, (5) Singapore Top Buyers Profile by Business Representation: (1) Importer, (2) Retailer, (3) Wholesaler, (4) Trader, (5) Buying Office - Buyer-Matching activities - Buyer's Lounge - On-site massage - Value-for-Money Hotels - VIP Airport Assistance - White-glove Services


The moving force behind PREF

Rose Marie Custodio Basa

President and Chief Executive Officers of PREF Events Management

Rosemarie Custodio Basa is the President and Chief Executive Officers of PREF Events Management that annually mounts and manages the Philippine Real Estate Festival or PREF. Now on its 5th year, PREF has successfully staged the event and has brought together most, if not all, the major players in the real estate industry. PREF has been continually supported by the major real estate associations including related disciplines, throughout the country that collectively counts thousands of members. To name a few, these are CREBA, SHDA, NREA, and OSHDP. All six (6) Key Shelter Agencies under the HUDCC namely the HDMF or Pag-Ibig Fund, NHA, NHMFC, HGC, SHFC, and HLURB have regularly supported the Festival as Resource Speakers, during the business forum and programs. During the last four (4) years, PREF has been very fortunate to have as guests to formally open the affair then President Gloria Macapagal Arroyo, then Vice President Noli de Castro and lately by Vice President Jejomar Binay. Last year PREF successfully conducted forums on the "Asian Symposium on Model Projects and Best Practices In Real Estate and Tourism Development" Speakers were Amb. Kulkumut Ayudhaya Embassy of Thailand, Amb. Leuane Sombounkhan Embassy of Laos, Charge d Affaire Tith Sarunreth Embassy of Cambodia. Mr. Antonio Lopez, Publisher/Editor of BizNews Asia ably moderated the forum on the "Development of Worldclass Real Estate & Tourism Fund Sourcing; Guests were Mr. Lindsay John Orr - Chief Operating Officer, Jones Lang La Salle Leechiu, Mr. Arun Savkur - Managing Director, Quantum Group (New York, USA), Mr. Rick Bernie Kawulia - Marketing Specialist, Funds Management (Retail & Wholesale, Local & Global - New South Wales, Australia).

PREF was also privileged to have as speakers Atty. Karlo Marco P. Estavillo of San Miguel Properties, Ilac Diaz, Alex Lacson - author of the best selling book "The 12 Little Things", Efren Penaflorida 2009 CNN Hero of the Year, Jose E.B. Antonio, Chairman - Century Properties, on the topics Developing Real Estate for Modern Lifestyles, Marc Daubenbuechel, Manager Retirement & Healthcare Coalition for European Chamber of Commerce in the Philippines talked about "Business Opportunities in the Retirement Industry", Mr. Henry Yap, General Manager - Robinsons Land tackled the topic "Today's Major Challenges in Developing New Communities". The last day was capped by informative speakers from SHDA Atty. Fermin Arzaga, who tackled Community Mortgage Program, Dr. Jaime A. Cura, CEO of Creba Land Services & Title Warranty Corporation talked on “How Can You Be Sure That the Title to your Property is Genuine and Not Fake”, Mr. Jaime Fabiana, CEO of Pag-ibig Fund, “How Can You Avail of Housing Loans Without OverExtending Yourself”, Dr. Eduardo G. Ong, Chairman of the Professional Regulatory Board of RESA, “What Does RESA Require of Real Estate Service Practitioners”, Mr. Vic Mamalateo, Former BIR Deputy Commissioner, “What are the Tax Obligations of Homebuyers”. The PREF Excellence awards honored the following projects The Windmill Farm, represented by Senator Bong Bong Marcos, “Baluarte Zoo”, represented by Mr. Rommel Singson, “Tuloy sa Don Bosco Street Children Village” by Fr. Rocky Evangelista, “Gawad Kalinga Community Development Foundation” by Dir. Luis Oquinena, “Subic Bay Metropolitan, Authority” by Deputy Administrator Atty. Joy Alvarado, Arch. Jun Palafox, numerous projects Ms. Anon Ozaeta, of One Pacific Place, Denmark

Corp., Grand Monaco, Phinma, One Pacific Place, Empire East, Bright Asia Realty, AnchorLand, Solar Resources, IPM Realty, Pan Asia Investment Group, Umbrella Alejandro of Bayan Productions, Real Estate, Centrepoint , Manila and John Aguilar of Street Park Productions Inc. Guest of Honor was Prime, Earth & Style, Suntrust Properties, Landco Pacific, Star former President Fidel V. Ramos. Properties, Bell Properties, Pueblo Previous years witnessed de Oro, Sun Valley, Landworks, so many interesting and truly Asianland Strategies, Esla Land, informative subjects being tackled. Royal Homes, RG Sarmiento, To name a few: the speech of Mr. DDC Land, RGV Realty, R Cosme Antonino Aquino President of Ayala Development Corp., Profriends, Land on the topic “Emerging Fiesta Communities, Globe Asiatique, La Loma Columbary, GR concepts and approaches to Canon, Burgundy Realty, Step One, real Estate Investment for Diverse One Asia, Antel Land, Prime Peak, Markets in the Philippines”, Active Realty, First BYO, Filinvest Hon. Edgardo Aglipay, Chairman, Alabang, Porta Bella, Sun Valley, Philippine Retirement Authority on HO Brothers Realty, MISIBIS Realty, the topic “ Luring the Baby boomers Cisco Realty and a lot of others. of the World – PRA Programs & Projects, Director/Gen. Lilia de Rose is presently the Executive Lima, Usec PEZA on the topic “Why Vice President of CREBA, Vice Economic Zone Locators stay on in President for the Middle East the Philippines.” of the CREBA International Foundation Inc.. She is a past There were panel discussions President and a 3-term Chairman on “Philippine Investment Incentives of the CREBA Social Housing & Dis-incentives”. Panelists were Foundation. She has a regular Atty. Miguel B. Varela, Chairman radio program in Radyo Inquirer Philippine Chamber of Commerce DZIQ 990am aired every Saturday & Industry and Mr. Ram Sitaldas, from 9:00-10:00am and has a President Federation of Indian regular column in Bandera, the Chamber of Commerce (Phil) Inc. tabloid owned by Philippine Daily The second panel discussion on Inquirer. She is also president of “Sourcing Funds for Real Estate GPFP Properties Management, & Tourism Development” with Senior Vice President of Global panelists Mr. Alfonso L. Salcedo, First Financial Partners and President BPI Family Bank, Mr. Trent President of Global Fergo Aisa M. Frankum, Executive Director Philippines. Investment Properties, CB Richard Ellis, Mr. Eduardo Francisco, Rose is a BREW awardee ( President BDO Capital & Investment BizNews Asia Who is Who) in the and Ms. Ma. Luz Generoso, Social field of real estate given by Mr. Security System. Antonio S. Lopez, President and Publisher of the BizNews Asia PREF 2011 promises to have Magazine. Mr. Lopez has cited more relevant topics and very Rose Basa legend in for “some reputable and knowledgeable of the interesting and innovative speakers programmed towards ideas in real estate promotion and providing the public with important development, like the Philippine information regarding the real estate Real Estate Festival (PREF), the industry and other related topics. million homes for the poor and the working class, and homes The major and the more for jeepney drivers. She also has reputable real estate developers foreign investment partners with that regularly exhibit and support interesting business ideas and PREF include names, like Ayala deals. Now on its fifth year, PREF Land, Filinvest, San Miguel is where top officials of the land, Properties, DMCI Homes, Century major developers, investors, Properties, Robinsons Land, Vista builders, suppliers, government Land, Camella Homes, Camella housing agencies, and end-users Communities, Crown Asia, Brittany and consumers meet and interact. Corporation, Polarminds, Carissa Homes, Sta. Lucia Realty, Fil Estate, Simultaneous with PREF is an investment forum participated in Megaworld, Federal Land, Ortigas by experts both local & foreign & Company, V.V. Soliven, State who paint and discern the outlook Properties, Profriends, Avida Land, Amaia Land, Cathay Land, Greenfield for real estate global tourism and Development, Maisaito, Geo Estate, other fields.” Lakeshores, Moldex Realty, New San Jose Builders, SM Investment 65 | Real estate WoRld


Fr. Fernando Suarez with 6 priests

PrEf 2010 Opening day Fr. Fernando Suarez opened the 3 day Festival with a mass assisted by 6 priests & 6 Lay Ministers with 24 Man Choir. Ribbon cutting by Vice President PREF President & CEO. Jejomar C. Binay, HUDCC Chairman and Rose C. Basa Ribbon cutting Vice President Jejomar Binay and Rose Basa. At the back is Fr. Fernando Suarez

Sonny Coloma Malacanang Press Secretary

1. Arch. Nestor Mangio 2. Ramon Cuervo Dr. EJ Ong 3.Noel Cabangon 4. Sammy Lim 5. Purita Soliven, Tess Millan, 6. Reghis Romero 7. Rey Carpio 8. Iliac Diaz, Jimmy Cura, Atty. Alex Lacson, Efren Penaflorida, Sonny Coloma 9. Pepe Manalad, NREA 10. Bansan Choa 11. Delfin Wenceslao & Cong. Ed Zialcita 12. Charlie Gorayeb (CREBA President) 13. Ati-atihan

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14. San Miguel Properties Gen. Manager Atty. Karlo Estavillo explaining to VP Jejomar Binay their upcoming projects 15. Joyce Alumno Andy Manalac 16. Linda Tan OSHDP

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Iliac Diaz, Jimmy Cura, Atty. Alex Lacson, Efren Penaflorida, Arch. Alan Cruz, DOT Usec. Vincent Romano, Rose Basa


Philippine Real Estate Festival (PREF) 2011

"rEal EStatE dEvElOPMEnt,tOuriSM and MEdia-a triPartitE cOllabOratiOn fOr natiOnal PrOgrESS" In its continuing thrust to provide a one-stop venue for everything one needs to know and see about real estate development, PREF Events Management brings you the Philippine Real Estate Festival (PREF) 2011. Now on its fifth year, PREF 2011 aims to be the ultimate hub for all real estate developers and practitioners. PREF 2011 will be held at the World Trade Center from July 28 to 30, 2011 from 10:00am to 7pm everyday. The property industry has been steadily recovering from the global slowdown which has plagued real estate values in recent years. Real estate developers have been coming up with great building designs and technologies, innovative practices and methods in order to allow more people to be acquainted with their products and services and at the same time, get access to financial resources favorable to their client’s needs. As these methods have evolved, the PREF management has recognized the vital importance of both the tourism and media industries in propelling the progress of real estate. Hence for PREF’s fifth year, the theme, “Real Estate Development, Property Tourism, and Media: A Tripartite Collaboration for National Progress” was developed. This year’s PREF will underscore the contributions of real estate development, property tourism and media in working together to achieve development on a national scale. The Festival will showcase our country’s best examples of successful investment in real estate development in the country today from high rise condominium to medium rise buildings, low cost and socialized housing. Tourism

development including resorts and retirement homes will be featured. This exhibit will be the prime location to display the products and services by other allied industries like financial institutions, suppliers and the like. In line with this year’s theme, PREF 2011 will serve as the venue for information exchange in the relationship among real estate development, tourism, and media and its role in contributing to national progress. It will heighten access between buyers and sellers in the real estate, tourism, and media industries and present opportunities for network building among these communities. No less than the two top leaders of this country, Pres. Benigno C. Aquino Jr. and Vice Pres. Jejomar C. Binay have been invited to grace this event as the Guest of Honor & Speakers to formally open the event. Noted government leaders will be invited to share their insights on their respective areas of jurisdiction and their roles in industry development. Aside from government leaders, the Festival will feature talks from distinguished media personalities from the broadcast stations and print media. Various media trends and strategies on how to develop one’s business and how to effectively communicate our key messages to specific and targeted markets will be tackled. The second day will feature topics regarding business and finance. These will be presented by representatives from the Dept. of Trade and Industry and Bureau of Internal Revenue and Finance. Key industry associations are

expected to be in attendance to partake in discussions on business issues and market trends. Representatives from key shelter agencies will be present to give light to different issues affecting real estate developers. These shelter agencies under the umbrella of the Housing & Urban Development Coordinating Council (HUDCC), include the Home Development Mutual Fund or the PagIbig Fund, National Housing Authority (NHA), Housing and Land Use Regulatory Board (HLURB), Social Housing Finance Corporation (SHFC), Home Guaranty Corporation (HGC). A Design Showcase will be featured during the Festival, displaying the young talents and skills of our students that are would be designers and architects. Invited schools will be able to present their different design ideas for the development of the real estate industry. This will serve as the venue to develop young minds and be interested in publicprivate partnerships to promote community-building. PREF 2011 will be capped with the presentation of the PREF Excellence Awards,

which aims to give recognition to notable projects that have made a significant impact on the real estate industry. Invited to be the Guest of Honor and Speaker of this activity is Chief Justice Renato Corona. The Festival will be punctuated with a concert performance from well-known celebrities in the country. At the end of each day from 4:30 to 6:00 in the afternoon, the public will get to enjoy musical performances, showcasing our country’s talents. Each concert will present musical numbers from top bands, singers, and actors in the industry. The Philippine Real Estate Festival 2011 is open to all interested participants, as admission is free for the entire three-day event. The Festival is expected to draw attendance generally from the public who are in the market for various types of condominiums, and house and lot packages and the like. Other industries, trade associations and groups from all sectors of our society, Government officials and representatives from Local Government Units (LGUs), have been invited to attend. All interested participants are welcome to attend the Festival.

For interested sponsors, exhibitors, attendees, and for general inquiries, please contact PREF Events Management at Tel. Nos. 819-2058 or 864-0224, or via email at pref_eventsmgt@yahoo.com.

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PrEf cocktail Asian Cultural Fiesta was held at New World Hotel, Makati City. Invited friends from the Real Estate Developer, Diplomatic Corp., Tourism & Business Leaders & Government Officials. Hosted by Mr. Johnny Litton.

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1. Amb. Leuane Sombounkhan of Laos Charge d Affaire Tith Sarunreth of Cambodia 2. Atty. Alex Lacson 3. Bayanihan Dancers 4. Bobby Amores 5. Johnny Litton

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6. Dianne Pe, Karen Cas, Arch. Alan Cruz, Gil Soblingco 7. Ida Henares of GMA 7 8. Atty. Karlo Estavillo 9. Ed Lunas 10. Eddi Katindig 11. Willy Arcilla Karen Ramos 12. Consuls Mellie Ablaza, Louie Ablaza 13. Iliac Diaz & Rod Nepomuceno 14.Marjo Yuzon, Marie Yuzon 15. Roger Garcia 16. Grace Palma- Tiongco, Rose Basa, Atty. Mike Varela

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Asian Cultural Fiesta was held at New World Hotel, Makati City. Invited friends from the Real Estate Developer, Diplomatic Corp., Tourism & Business Leaders & Government Officials. Hosted by Mr. Johnny Litton.

5 1. Amb. Kulkumut Ayudhaya of Thailand 2. Marc Daubenbuechel European Chamber of Commerce 3. Charge d Affaire Tith Sarunreth of Cambodia 4. Rick Kawulia (Funds Mgt. Australia) 5. Arch. Jun Palafox, 6. Amb. Leaune Sombounkhan of Laos 7. Arun Savkur Quantum Group, New York USA 8. General Manager, RobinsonsLand Henry Yap 9. Lindsay John Orr Jones Lang La Salle Leechiu 10. CEO, Century Properties Jose E.B. Antonio 11. Fr. Rocky Evangelista

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Bahay Pinoy, Buhay Pinoy:

Bridging Property Issues at Radyo Inquirer

daniel dela cruz

For most Filipino families, gaining access to housing is one of the primary needs that they have to address. With the daily struggle in saving enough money to purchase land and spend for house-building, it is important for most people to know the cost-effective way in order to have a home. With so many things to consider, and the seemingly complicated process in order to obtain affordable housing, there is now a one-stop gateway for all information connected to housing over at Radyo Inquirer DZIQ 990khz. This is the recently-incepted program, “Bahay Pinoy, Buhay Pinoy”. this radio program aims to be the instrument to make access to housing a possibility for each Filipino family. In the same vein, the program aims to safeguard the interests of each Filipino family so that they would not be taken advantaged of if they want to gain access to housing. this program plans to continuously collaborate with every concerned citizen to give answers to their questions regarding housing. Since January of this year, this program has featured various practitioners and 70 | Real estate WoRld

experts on the different aspects of housing. some of them are Housing and Urban development Coordinating Council’s (HUDCC) atty. Butch Fabul, Jeanette Cruz, and atty. ave tolentino who discussed the various programs of HUdCC and anti-squatting issues. Joel Begornia and leila astronomia of the land Registration authority were also previously featured guests who talked about detecting fake land titles. The Social Housing Finance Corporation on the other hand discussed Community Mortgage Programs. Cong. Rodolfo Valencia has also graced the program to talk about the Comprehensive land Use Program (ClUP) of local Government Units (lGUs). Bahay Pinoy, Buhay Pinoy has also featured noted real estate developers who have projects connected to the segment’s topic. Listeners can expect that each episode will be fully dedicated to give information on the various issues that involves housing. Future guests in the program will be representatives from Bureau of Internal Revenue (BIR), National Home Mortgage Finance Corp., Housing and Land

Use Regulatory Board (HLURB), and National Housing authority. architects and developers will also be invited in upcoming radio episodes to inform the public on their present and future housing projects. Bahay Pinoy, Buhay Pinoy is accepting inquiries and comments from the public on all issues related to housing. The program is aired every Saturday, 9:00-10:00 in the morning at DZIQ 990khz. Telephone numbers are 5191875/ 519-1876/519-1477 or

text 0919-2909646. The program is anchored by Rose Basa, President of the Philippine Real Estate festival and Executive Vice President of the Chamber of Real Estate & Builders association (CReBa). Co-host is daniel dela Cruz, Publisher of Real estate World Magazine.

ROSE BASA


SMDC mass housing projects get Boi approval

two condominium projects of SM Development Corp (SMDC) with a combined cost of P5 billion have been approved by the Board of Investments (BOI).

light Residences tower 1 and 3 will rise in the corner EDSa and Madison St. in Mandaluyong City, while My Place will be at South Triangle Building 1 and 2 on Panay avenue, Quezon City. light Residences is on 12,940 square meters of land on which two 34-storey condominium buildings will rise. there will be a total of 2,660 low-cost/economic housing units with unit price ranging from P1.8 million to P 2.2 million each. the housing units are in studio and one-bedroom types measuring 20 sq. m. and 28 sq. m. respectively. the south triangle, on the other hand, rises on 4,874 sq. m. of land with two 25-storey condominium buildings with 1,739 low cost/economic housing units priced between P800,000 to P2.6 million each. the housing units will consist of studio units measuring 20 sq. m. and one bedroom and two- bedroom types measuring 28 sq. m. and 40 sq. m., respectively. Both projects are expected to start commercial operation in March 2011.

Based on the BOI’s 2010 Investments Priorities Plan (IPP) guidelines, low-cost mass housing projects may be entitled up to four years income tax holiday (ITH), in contrast to generally three years in the National Capital Region (NCR). Prior to the availment of ItH, the BoI requires firms to submit proof of compliance that at least 20 percent of the total cost of building construction and site preparation for vertical housing projects has been developed and allocated for socialized housing within the same city or municipality. Such proof includes new settlement; slum upgrading; and joint-venture projects. the Housing and Urban development Coordinating Council (HUDCC) defines socialized housing as units that cost P400,000 or less and low cost units as those that are priced between P751,000 and P3 million. The BOI however recently disclosed its plan to narrow the definition of low-cost housing entitled to tax perks to units worth P2 million, citing that the market above this threshold is already sizeable and does not require fiscal incentives for developers to come in. Developers were quick to oppose BOI’s move, noting that reducing the ceiling to P2 million is a big disincentive and would eliminate the large market niche of the P2.5-million and P3-million units. – RJa 71 | Real estate WoRld


Asia Pacific Real Estate Association The representative body for the real estate sector in asia.

APREA: Key to Real Estate Investments in Asia Pacific

Peter Mitchell,

Chief Executive Officer of Asia Pacific Real Estate Association (APREA)

AsiaPacificisalargeanddiverseregionwhereeachmarket

has different requirements and preferences.And investing in real estate is one of the bullish areas for its people. Peter Mitchell, Chief Executive Officer of Asia Pacific Real Estate Association (APREA), named Singapore, Japan

and Hong Kong as the three biggest country players in real estate in the region. According to him, one of the reasons is the increased interest in allocation to Asian real estate by global institutional investors. He

also believed that this will continue, driven among other things by strong growth rates, increased urbanization, rising wealth, the region’s increasing share of global GDP and improvements in the sector being supported by APREA- improving corporate governance and transparency and a drive for more consistent valuation and other standards.

What is APREA? Established in 2005

APREA is a non-profit industry association that represents the real estate sector (listed and unlisted) in Asia Pacific on a regional basis. At present, it is composed of seven chapters in Asia with 145 full members covering a wide spectrum of the industry including banking and financial institutions, legal firms, research & information, academic institutions, investment managers, pension funds, accounting firms, etc. 72 | Real estate WoRld

It is a regional association

with no national alignments but solely dedicated to improving the investment environment throughout the region. Its member countries and regions include Australia, Singapore, Hong Kong, Japan, the Philippines, Vietnam, Malaysia, Korea, India, the Middle East, USA and Europe


t

he association works to encourage greater invesment in the real estate sector in the region through the provision of better information to investors, improving the general operating environment, encouraging best practices and generally unifying and strengthening the industry.

The APREA Institute is the associations’ arm in providing trainings that provides the

foundation for raising standards in the industry. Its achievements in education and information dissemination and its focus on improving the general real estate operating environment, have solidified its position as the leading representativebody for the industry in the Asian region.

To support the associations’ initiatives and in response to considerable market feedback, APREA has lined up

some of the following events for 2011: (1) Introduction to Certificate of Real Estate Investment Finance (CREIF) on 13 January 2011 in Malaysia; (2) RICSFundamentals of valuation (Commercial) on 19 January 2011 in Hong Kong; (3) Real Estate Investment World 2011 on 21-24 March 2011 in Beijing, China; and (4) APREA Property Leaders Forum 2011 on 1315 April 2011 in Beijing, China.

The APREA Property Leaders Forum in Beijing will continue to enhance and It is through these endeavors that APREA was expand opportunities for investors and honored by the International Real Es- industry leaders to meet and discuss tate the Society (IRES) with the 2009 Corporate Excel- important issues in a collegiate, lence Award for their valuable contribution to fostering the growth of the sector on an international level and non-intrusive environment. making the association as the first Asian organization to be meted such an award.

APREA in the Philippines Mitchell informed that APREA has assisted the Philippine Stock Exchange in the drafting and promotion of the Real Estate Investment Trust (REIT) Bill or R.A. 9856, which became effective last February 9, 2010. With the approval of the laws’ implementing rules in May last year, it is hoped that the REIT Act will greatly contribute to the development of the country’s capital market at the same time, boost the real estate by attracting more OFW remittances, increase in government infrastructure investments, and other individuals capable of participating in large-scale real estate projects as small investors through the REIT. Through the said ACT, the country has taken a significant step in recognizing the importance of real estate investment. – GTM 73 | Real estate WoRld


legislative framework of asian rEits JAPAN

Structure

Trust or corporate (listed REITs are all corporations)

Management structure

External

% invested in real estate

For listed J-REIT, at least 75% of assets must be invested in real estate

No restriction under the Investment Trust and Investment Company Act, but no overseas Geographical acquisitions have been made as the restrictions requirements on real estate appraisal of overseas properties are ambiguous

Restricted - at least 50% of total developments assets are income producing and unlikely be sold within one year

Property

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SINGAPORE

Collective investment scheme (Unit trust) or corporate

External At least 70% of deposited property should be invested in real estate or real estate-related assets

No

Property developments and investments in uncompleted projects should not exceed 10%

HONG KONG

Unit trust

SOUTH KOREA

CorporateRestructuring, Entrusted Management, DevelopmentSpecialized, SelfManaged

TAIWAN

THAILAND

Trust (Real estate asset trust or investment trust)

Close-end mutual fund

MALAYSIA

Unit trust

Internal/ External

Internal/ External

Internal/ External

External

External

Only invest in real estate

At least 70% in real estate or corporate restructuring related properties

Cash, government bonds, property, property-related rights, beneficiary securities or ABS issued under Real Estate Securitization Act/ Financial Asset Securitization Act (RESA/FASA) must form at least 75% of the NAV

Must invest at least 75% of NAV in property

At least 50% of a fund's total asset value must be invested in real estate and/ or single-purpose companies at all times

No

Prohibited, but H-REIT may acquire uncompleted units comprising less than 10% NAV

No

No restriction under the RESA; subject to approval

Thailand only

No restriction basically, subject to approval from SC and relevant authorities

Allow

Allow for urban renewal, infrastructure or public amenities construction; investments should not exceed 30% of NAV

May acquire properties over 80% completed but prohibited to invest in dormant land (for PFPO)

Prohibited, but may enter into conditional forward purchase agreement


No restriction

Over 35% of total assets permitted with disclosed credit rating (capped at 60%)

At least 90% of distributable income to qualify for tax deduction

At least 90% so as to enjoy exemption from paying corporate tax

Leverage

Dividend payout

Capped at 45% of gross asset value

REITs are permitted to have exceptional borrowing up to 1000% of equity capital, upon special approval of shareholders

Ratings of twAA or above by twocredit rating agencies: 50%; ratings of twA or above: 35; those with credit ratings: 25%

Not more than 10% of NAV

50% of total asset value (revised from 35%)

At least 90% of annual net income after tax

At least 90%

At least 90% of distributable income

At least 90% of net profits

Not specified in the M-REIT guideline

SOurce: cBre, 2010

MARKET PERFORMANCE

As of November 2010, there are 119 listed REITs in the Asian market, bringing in USD86.5 billion market capitalization. Japan has the largest market in terms of number (35 REITs) and market capitalization (USD3.78 billion). That amounts to

The market capitalization among asian REITs has declined during the financial crisis in 2008 but has marked a steady recovery starting from the last quarter of 2009. according to Mr. Peter Mitchell, Chief Executive Officer of the asia Pacific Real Estate association (aPRea) during the RICs ReIts Conference, the asian REIT markets have grown more than 40 times since the first launch in 2001. The market started with roughly USD2 billion in 2001 to almost USD87 billion by the end of 2010. The top five asian listed REITs belong to REITs in Hong Kong, Japan, and Singapore. as of November 2010, The Link REIT in Hong Kong is the largest with USD7.1 billion in market capitalization (aPREa Research & Bloomberg, 2010).

29% and 44% of the total Asian REIT market for both measures respectively. This is followed by Singapore with 23 listed REITs and USD28.1 billion market capitalization (APREA Research, Bloomberg, 2010).

OTHER DEVELOPMENTS The asian REIT market is still on its growth phase, as there are more less-developed REIT markets (Malaysia, Thailand, Taiwan, and South Korea) currently existing and there are emerging REIT markets being identified. Both Pakistan and Philippines have their respective ReIt regulations in place, and awaiting finalization and implementation. Drafting of laws are also being slated for India and Indonesia. Existing

markets such as Thailand and Malaysia are also constantly improving their regulations to spur growth and limit volatility in their respective REIT markets. With the slower-than-expected global economic recovery, we can expect that REIT markets in asia continue to fine-tune their regulations and their implementation of such rules in order to provide a reliable alternative investment for the people. 75 | Real estate WoRld


REIT law yET

To bE ImplEmEnTEd

ThE REal EsTaTE

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InvEsTmEnT TRusT (REIT)


T

he Bureau of Internal Revenue (BIR) has yet to release the draft rules on the availment of tax incentives by REITs, holding in abeyance the implementation of the Real Estate Investment Trust (REIT) Law. The law, which lapsed into law on 17 December 2009, seeks to broaden the participation of Filipinos in the ownership of booming domestic real estate and tap the capital market as an instrument to help finance and develop infrastructure projects. AREITis a stock corporation established under the rules of the Corporation Code of the Philippines that uses a pool of investor funds to purchase and manage real estate assets that are income generating. Under the law, a REIT must not undertake property development activities, unless it intends to hold the property upon completion, thereby creating an income stream. On May 13, 2010, the Securities and Exchange Commission (SEC) approved the Implementing Rules and Regulations (IRR) of the Law, but the BIR and the Department of Finance (DOF) would like to have a higher amount of REIT share to be offered to the public, at least 50 percent from 33.3 percent, to minimize revenue losses while ensuring an effective democratization of real estate assets.

Such proposed increase in the level of public ownership of real estate assets met strong resistance from property giants, which have initially manifested strong interest in tapping the investment vehicle to raise funds.

In response, the SEC has reportedly proposed to the DOF to increase the minimum paid-up capital to P1 billion from the A REIT is entitled to several tax exemptions. original P300 million but leaving the Unlike an ordinary corporation, a REIT is not public shares offering at 33 percent. subject to the minimum corporate income tax of two percent of the gross income, while This proposed amendment to the IRR would income payments to a REIT are subject to a translate to increased public participation creditable withholding tax of only one per- while placating property developers’ concerns about losing significant control over cent. their real estate assets. – RJA The granting of this incentive, however, requires that the REITis SEC-registered and distributes at least 90 percent of its distributable 77 | Real estate WoRld


Hotel H2O

Manila, with its rich history, tourist attractions and spectacular sunset, offers an idyllic escape into a tropical island world. The City, located in the National Capital Region of the Philippines, is just two hours away from Hong Kong, Singapore and Taiwan. 78 | Real estate WoRld


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The hotel, designed by GSN + P Architecture Studio, comprises two floors connected by a long aquarium wall, housing the Aqua Club Lounge, Fitness Centre and Spa. The 114 rooms and 33 suites, pleasantly furnished with

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wood, natural fabrics and artworks, have the customary upscale amenities, comfortable king-sized or twin beds, individually controlled airconditioning, mini bar, personal safe and LCD television with remote

control showing in-house movies and satellite television. To round-off a trip to Manila, a diverse selection of tours can be easily organised to some of the many attractive places

such as The Old Walled City of Intramuros, the China Town of Binondo and the historical Malate Church. Hotel H2O is a member of World Hotels, the largest and most established Europe-based global hotel group for independent hotels and regional hotel brands, with a strong emphasis on properties with character and distinction


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Bohol:

aGreatEscapefromtheDailyGrind

After making my nth attempt to strike a celebritylike pose at a site overlooking the chocolate hills, savoring the malunggay-ginger flavored ice cream at the Bee Farm Resort, playing dwarf at the man-made forest, dining at a floating restaurant, and visiting the Baclayon church in our first day in Bohol, my friends and I decided to go dolphin watching, snorkeling and island hopping the following day. We met up with our boat guide at 6:30 am at one of the resorts at the Alona Beach, named after Filipina actress, Alona Alegre, who was said to run naked along the shore while shooting for a movie. Then off we sailed to have our dolphin watching experience. It took us almost half an hour to get to the area where the dolphins are. After ten minutes of sailing around the area, we finally spotted a bevy of dolphins cutting through the waters, a few even leapt out of the water. It was an entrancing sight that ought to be captured with our camera but we were not quick enough to do just that. After almost half an hour of chasing the elusive dolphins, we opted to go island hopping.

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The island hopping, however, turned out to be a single hop as there were only two islands to see – the Balicasag Island and the Virgin Island. The boat first docked at the Balicasag Island, which offers a good snorkeling site. We had to rent a mini-boat for P150 to get to the snorkeling site. Although we were advised to wear aqua shoes, which we could rent for P150, to protect our feet from sea urchins and sharp corals underneath, we thought we would be fine just wearing our footwear. I was fine with my skimmers, indeed, but my friend, who was wearing her slippers, sustained slight bruises on her feet. We snorkeled with our mini-boat guide, who was kind enough to take us to schools of fishes in various shapes, sizes and colors. After almost an hour of snorkeling, we took our lunch and then headed off to the Virgin Island. The island looked devastated at low tide but it is nonetheless worth visiting because of its very narrow and long shoreline. We were delighted with what have seen and experienced thus far. But these turned out to be just “appetizers” until we went to Panglao Nature Beach Resort. To get in, we paid a fully consumable entrance

fee of P450. The place was so peaceful and quite, a total sanctuary for people who want to escape the daily grind. The Resort houses dainty thatched roof villas, some of which have a small terrace wherein one could take a breath of fresh air and a spectacular view of a white-powder-sand beach. After unwinding in an exquisitely charming villa or basking on the beach, you can dine in a beachfront setting in the Resort’s restaurant which serves Filipino, Continental and Oriental dishes from 5:00 am to 11:00 pm. The Resort offers a lot of activities for the adventurous: from snorkeling, scuba diving, fishing, kayaking and wind surfing to mountain biking. For the not so adventurous, there is a selection of indoor games to enjoy like billiards, chess and table tennis. Or you may choose to relax at the Resort’s private islet after a romantic sunset cruise. Over all, it was definitely one unforgettable experience worth repeating. Now I know its not all media hype, but that Bohol has indeed such inherent charm that speaks very well of Philippine culture and nature.

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Real estate set to sustain the high note MR. ALEJANDRO S. MAÑALAC

Vice Chairman & Chair, External Affairs

1991

National Real Estate Association With overall confidence in the government at record highs and the economy surging ahead, National Real Estate Association (NREA) Vice Chairman Alejandro Manalac could only depict a bullish property market in the next two to three years. “The real estate industry has been bucking trends, growing still, albeit at a slower rate, even when the global economy entered into a crisis and uncertainty lingers,” says Manalac. “The real estate started under the current Administration on a high note. We were pleasantly surprised that the market remained active even in the run-up to the 2009 presidential elections when investors were expected to stay on the sidelines,” he adds. The Philippine economy has been growing at an impressive rate, the stock market is breaking records, and the Philippine peso has been gaining against the dollar, notes Manalac. “We had a good start that is set to continue based on the latest developments in the industry and the general economy”, he adds.

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The enactment of the Real Estate Services Act, according the Manalac, is set to significantly up the confidence of the buyers. He likewise intimates that having an aggressive Housing and Urban Development Coordinating Council Chair as Vice President Jejomar Binay is sure to help fire up the industry, which has a low-cost housing backlog of about three million units. The three million is already a fixed demand that must be tapped. Of course, the high-end segment is just as lucrative, says Manalac, mentioning that 30 units of low-cost housing is equivalent to a single unit of high-end housing. While the real estate industry profits from the soaring confidence in the government and the economy under the current Administration, Manalac notes that the infrastructure projects of former President Gloria Macapagal Arroyo lends considerable help in fostering a thriving environment for the sector. “There has been an appreciation in the value of the properties outside the central business districts because of the establishment of air and land transport networks. This

occasioned the spreading of the real estate developments out to the provinces,” Manalac details. Manalac likewise expects these infrastructure projects to fuel the development of the tourism industry, which is a key source of growth that remains largely untapped for the real estate sector. Next to home buyers, and lifestyle and upgrades, tourism the third most lucrative market for real estate developers, but it is a reactive one so the government needs to effectively develop and promote it, notes Manalac. RESA a boon towards industry professionalization While the bulls of the real estate industry have shown no signs of running out of gas, National Real Estate Association (NREA) Chair Jose Manalad believes that the industry can still do better. There is a need to elevate the status of the industry and strengthen its contribution to the national economy, says Manalad. Having universities offering a bachelor’s degree in real estate would help ensure the


provision of quality real estate services, says Manalad; hence, the reason he once tried to court a university to introduce a degree program in said course four years ago. With the enactment of the Real Estate Services Act (RESA), Manalac could not be any happier. The law, which aims to professionalize the industry, requires would-be real estate practitioners to have a bachelor’s degree in real estate.

are offered in the first two years of a bachelor’s degree program.

major step in transforming the industry.

The controversy about the RESA, however, is not confined to the bachelor’s degree requirement. Manalad notes that the requirement to supervise agents by a licensed broker does not sit well with some players in the industry.

If that major step is nipped in the bud, Manalad says that he will continue making the necessary steps towards maximizing the full potential of the industry.

Under the law, a licensed broker is needed to supervise a maximum of 20 agents, a move that deemed unnecessary by some.

“A lot of graduates of other professions end up in real estate “While I do understand so why not offer this program as the sentiments of those early as in the undergraduate who are opposed to the said level,” says Manalad. requirement, the law has been Manalad, however, does enacted and we ought to toe recognize the difficulty that said the line set by the law,” says requirement brings, considering Manalad. that real estate providers already One can introduce an have a bachelor’s degree. amendment to the law but He thus welcomes a proposal until then, the law should be that these graduates may go implemented, he adds. Of straight to third year when major course, even without the law, courses are introduced, provided Manalac likewise mentions that that they have taken the the industry will move on, but necessary general subjects that maintains that the RESA is one

“NREA, for instance, will continue to educate real estate practitioners not only in Metro Manila but also those in the provinces.” Manalad also intimates about exploring the possibility of having a foreign university off-shoring its services to those who wish to take a bachelor’s degree in real estate in the country. “A journey of a thousand miles always starts with a single step so we have to start taking that step now if we wish to see the industry moving further up in a sustainable manner,” says Manalad.

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Singapore Luxury Condos in Full Throttle It appears that there is no letting up in one of the most expensive and sizzling hot real estate markets in the world. That is, the Singapore property market, ranked as the best real estate destination in asia in a recent survey by PricewaterhouseCoopers and the Urban Land Institute.

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Keppel Land, the developer of Marina Bay Suites, has posted in its website that ninety-seven percent of the 800 luxurious waterfront condominium units at Reflections at Keppel Bay have already been sold. These condominium units are housed in six glass towers 24 to 41 storeys, with each pair of towers connected by sky bridges, and 11 blocks of six-to-eight-storey villa blocks. The Singapore real estate is becoming excessively hot that the government had to introduce four rounds of property cooling measures since September 2009. The latest of which is the requirement on owners who sell houses and apartments to pay extra in stamp duties within four years instead of three years. The loan-to-value ratio on housing loans has also been raised. Companies that purchase residential properties may borrow from banks up to 50 percent of the value of the property they would like to buy compared to 70 percent previously, while individuals who already have one or more outstanding housing loans can only borrow 60 percent against 70 percent in the past.

The introduction of these new property cooling measures on 14 January 2011 was occasioned by the surge in demand for housing last year, thanks in large part to Singapore’s transparent tax policy and regulation and low interest rates. Reflecting the strong property demand, private home prices during Q2 of 2010 surpassed the former all-time peak achieved in 1996. In 2010, overall private housing prices increased by 17.6 percent. While overall home prices decelerated in the last quarter of 2010, prices of high-end and luxury homes increased even further with Q4 2010 growth outstripping the previous peak in Q1 of 2008. Much of the increase can be traced to non-landed home prices in the Core Central Region (CCR) micro-market, which includes the prime districts Marina Bay and Sentosa Cove which are being marketed to well-moneyed foreigners.

of the 800 luxurious waterfront condominium units at Reflections at Keppel Bay have already been sold. These condominium units are housed in six glass towers 24 to 41 storeys, with each pair of towers connected by sky bridges, and 11 blocks of six-to-eight-storey villa blocks. CapitaLand Limited’s Interlace, famed for its iconic design, has sold 85 percent of the 590 units released for sale. Set for completion in 2015, the Interlace features a unique design of interlocking blocks resembling a “vertical village” with cascading sky gardens, as well as private and public roof terraces. Another stellar in the high-end market is the Esparina Residences comprises of 9 towers, 18 storeys each with a total of 573 units. RJA

The crème de la crème of the high-end market are the so-called “Good Class Bungalows,” or GCBs, referring to properties with no less than 15,000 square feet of land and are being sold at around $15 million apiece. Keppel Land, the developer of Marina Bay Suites, has posted in its website that ninety-seven percent 87 | Real estate WoRld


Singapore real estate buoyant

S

Singaporereale Prices increasing for high-end units

It

appears that there is no letting up in one of the most expensive and sizzling hot real estate markets in the world. That is, the Singapore property market, ranked as the best real estate destination in Asia in a recent survey by PricewaterhouseCoopers and the Urban Land Institute. The Singapore real estate is becoming excessively buoyant that the government had to introduce four rounds of property cooling measures since September 2009. The latest of which is the requirement on owners who sell houses and apartments

88 | Real estate WoRld

to pay extra in stamp duties within four years instead of three years. The loan-to-value ratio on housing loanshasalsobeenraised.Companies that purchase residential properties may borrow from banks up to 50 percent of the value of the property they would like to buy compared to 70 percent previously, while individuals who already have one or more outstanding housing loans can only borrow 60 percent against 70 percent in the past. The introduction of these new property cooling measures in January

this year was timed with the surge in demand for housing last year, thanks in large part to Singapore’s transparent tax policy and regulation and low interest rates. Reflecting the strong property demand, private home prices during the second quarter last year surpassed the former all-time peak achieved in 1996. In 2010, overall private housing prices increased by 17.6 percent. While overall home prices decelerated in the last quarter of 2010, prices of high-end and luxury homes increased even further, with growth for


Singapore

real esta buoyant

the Interlace - Singapore’s Next Postcard Landmark

estatebuoyant the last quarter of 2010 outstripping the previous peak in the first four months of 2008. Much of the increase can be traced to non-landed home prices in the Core Central Region (CCR) micro-market, which includes the prime districts Marina Bay and Sentosa Cove which are being marketed to well-moneyed foreigners. The crème de la crème of the highend market are the so-called "Good Class Bungalows," or GCBs, referring to properties with no less than 15,000 square feet of land and are being sold at around $15 million apiece. Kep-

pel Land, the developer of Marina Bay Suites, has posted in its website that ninety-seven percent of the 800 luxurious waterfront condominium units of its Reflections at Keppel Bay have already been sold.These condominium units are housed in six glass towers of 24 storeys and 41 storeys as well as 11 blocks of six-to-eightstorey villa blocks. Each pair of towers will be connected by sky bridges.

lace features a unique design of interlocking blocks resembling a “vertical village” with cascading sky gardens, as well as private and public roof terraces. Another stellar in the high-end market is the Esparina Residences comprises of 9 towers, 18 storeys each with a total of 573 units. - RJA

CapitaLandLimited’sInterlace,famed for its iconic design, has sold 85 percent of the 590 units released for sale. Set for completion in 2015, the Inter89 | Real estate WoRld


the Interview

90 | Real estate WoRld


91 | Real estate WoRld


HE

STRESSES THAT HE IS DEEPLY ENGANGED WITH “SO MUCH WORK IN THE SENATE.”

By partnering with developers for example, the Senator cites that lGUs can be guided in issues such as design, technical specifications and materials. He cites Vice President Jejomar Binay, formerly Makati Mayor, as one who can share some best practices in this area, including his “regulated” renting schemes. Regulation helps ensure that there is water, electricity, garbage collection and all the other basic services for the community.

Inspiration The 54-year old Senator admits to have “no experience” in the area of urban planning and settlement, since this is not an issue in Ilocos Norte where he served as Governor for three consecutive terms. and so when he was offered the post at the Senate, it was his mother, former first lady Imelda Romualdez Marcos, whom he sought advice and assistance from.

“she shared with me more or less the blueprint under which the Human Settlement Ministry, which she heads at the time of former President Ferdinand E. Marcos Sr., was running. the same principle of private and public partnership applies back then. We know that the task is But in organizing the LGUs, it is only appropriate that the just too big that we need everyone’s help to make our national government puts its house in order first. He adds plans work,” he says. that at the moment, there is no agency that provides the over-all policy direction and implementation. there is a need to create settlements where residents will Further, there are three agencies that provide land titles, have all they need in one area, including jobs, recreation, underscoring the duplications and possible gaps in the and worship centers. then, replicate these as clusters all over the country, he adds. process. “We always talk of (house) ownership but why not rent? For one, there is not enough, if we still have lands to own at all. Besides, the informal settlers are renters anyway,” he notes.

“a department of Housing will be the appropriate body,” he shares. “The Housing and Urban Development Council or HUDCC which the Vice President heads is only a consultative body and has no mandate to do that, although it can be developed as the department we are looking for. Once we have this Department with clear roles, then we can be able to do away with redundancies.”

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Bongbong Marcos won a seat in the Philippine Senate, placing 7th overall and first of the two real Senate newcomers.

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At a very young age of 23, he was elected vice-governor of

Ilocos Norte. as a Senator, he is confident that he will be able to deliver more than when he was a Congressman. “In Congress, there are two kinds of votes (on an issue): one is the party vote and the other, the conscience vote,” he explains. “In the Lower House, a Congressman normally follows the lead of his party. In contrast at the Senate, a lawmaker can make a difference even if he is by himself. Everything is conscience vote.” When asked about his plans in 2016, he said that “it is too early”. But he agrees that the results in 2016 will have a lot to do with the outcome of the 2013 elections. Meanwhile, he stresses that he is deeply engaged with“so much work in the Senate.” He then goes back to the PPP model to achieve his objectives within his six-year term. “Tax breaks, particularly for low-cost housing, can attract developers to work with us in this area. We are also looking at VaT exemptions on construction materials,” he cites. then again, he reiterates that there is a need to make all players appreciate their respective roles, and then make them cooperate well together. “Now it is all moral suasion, absent the appropriate housing body. I hope that it works,” he says.

“...a lawmaker can make a difference even if he is by himself. everything is conscience vote.” 94 | Real estate WoRld


In his nine years as Governor, he transformed Ilocos Norte into a first-class province, showcasing its natural and cultural tourism destination areas, as well as its pioneer wind power technology that serves as an alternative source of energy for the needs of the province and neighboring towns. 95 | Real estate WoRld


BIOGRAPHY*

In his 17 years of public service, Ferdinand “Bongbong” Marcos, Jr. has achieved for himself a distinguished record as a lawmaker, government official, and public administrator, most of which were accomplished away from the spotlight. Bongbong became drawn to the challenges of public service early on in life, having observed how both his parents devoted their lives to public service for more than two decades. at a very young age of 23, he was elected vice-governor of Ilocos Norte. the events that transpired after the edsa Revolution in 1986 forced the Marcoses to leave the country in exile. While he was away, Bongbong’s thoughts nevertheless remained focused on being able to serve his country, as he continued to study and develop his skills while aspiring to be able to come home to the Philippines soon.

Bongbong’s thoughts nevertheless remained focused on being able to serve his country,”

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Braving the possibility of arrest from the new regime, Bongbong was the first among his family to return from exile in 1992. No sooner had he stepped back on Philippine soil than he took up where he left off and started serving the Filipino people once again. In the same year, he was elected to Congress as Representative for the second district of his home province, Ilocos Norte. among the measures he authored was the landmark law establishing the Philippine Youth Commission. He was also instrumental in advancing the cause of cooperatives by devoting most of his Countryside Development Fund (CDF) to organizing cooperatives of teachers and fanners in his home province.


He became drawn to the challenges of public service early on in life, having observed how both his parents devoted their lives to public service for more than two decades.

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Clockwise from top: The Senator with his wife, Louise Chacho Araneta and their three sons; With his mom former First Lady and incumbent Congresswoman Imelda Marcos; bonding with his family. In 1998, he ran and won Governor of Ilocos Norte, where he served for three consecutive terms. In his nine years as Governor, he transformed Ilocos Norte into a first-class province, showcasing its natural and cultural tourism destination areas, as well as its pioneer wind power technology that serves as an alternative source of energy for the needs of the province and neighboring towns. In 2007, he was elected back to the House of Representatives, where he served as Deputy Minority Leader. During this term, one of the important pieces of legislation he authored was the Philippine archipelagic Baselines law, or Republic act No. 9522. In 2010, Bongbong Marcos won a seat in the Philippine Senate, placing 7th overall and first of the two real Senate newcomers. Presently, he chairs the Senate Committee on Local Government and the Committee on Urban Planning, Housing and Resettlements, and is a member of several other committees. Born on September 13, 1957, Bongbong is the second child of former President Ferdinand Edralin Marcos and former First Lady and incumbent Congresswoman Imelda Romualdez Marcos of the 2nd District of Ilocos Norte. He studied elementary in De La Salle College, finished his secondary education in Worth School in England, and earned his bachelor’s degree in Political Science, Philosophy and Economics from the Oxford University in 1978. He obtained his Masters in Business administration from the Wharton School of Business. He is married to lawyer Louise Cacho araneta, with whom he has three sons.

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inspiration from them. Steel is dependable and so should our strength of character be. Trusses of commitment and faithfulness between family members make a sure foundation at any place or season.

Are you building a truly beautiful HOME? These days we see more and more state-of-the-art homes being constructed. Part of their beauty is the variety of styles which globalization and modernization has opened up to builders. The wide range of materials both local and otherwise suggests that modern houses have access to the most reliable and dependable products there could be. Homeowners now want durability alongside, or even over, the aesthetics. If both aspects do not interplay, there is an absence of true beauty.

Blocks - Building blocks protect us, so should prudence set limitations in our actions. Blocks build walls, but ours must be walls without prejudice and condemnation and instead provide for inner security and dependability not only within members of the home but over and beyond its boundaries.

Nails and screws - Use the durable life-lessons which help each person grow individually or as a family. Yes, some events in our life hurt or have caused us sorrow-- but we can, and should use each experience towards growth and maturity. Mistakes? Regrets? Like nails and screws they tarnish and rust our Being-- replace them with new pieces of optimism. Wood and steel - Old wood survived time, there is a hidden beauty from them: just as we learn from our elders and draw

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Do build wisely! Build a HOME OF TRUE BEAUTY, where what matters most are those from the heart and for the soul. 1 Corinthians 3:10-15

According to the grace of God given to me, like a skilled master-builder I laid Doors - Our doors must a foundation, but someone open up to love and charity, else builds on it. And each welcoming the good and the one must be careful how he true. They provide an opening to promising opportunities and builds. For no one can lay any foundation other than what noble dreams. They should is being laid, which is Jesus be closed to grudges and selfishness, shut to violence and Christ. corruption. Each door should If anyone builds on the have a key to God’s room. foundation with gold, silver,

Windows - Our windows give a vision of hope and a view of God’s directions. They must allow members to witness peace, and above all provide the But on the onset of a growing materialistic world there is neglect inspiration to nurture a garden on an aspect of which each home should be built upon. Beyond of love. the external and the tangible we must not forego the intangible, yet enduring aspect each home must have. Accessories, lighting and fixtures - These are aimed This is spirituality. Spirituality makes man give rise to a real to magnify what is already home: built to give security, pegged on what is not passing or beautiful. Yes, there will be temporary, but lasting and greatly tested to withstand the true imperfections and oddly-placed storms of life. alterations: but what is lit up A special place need not be huge or fancy. It can be constructed is not what is lacking nor the ugly, but the strengths and the inexpensively. The essence of spirituality is that it will always beauty. Some things would come from within. It nourishes the soul and it enlivens the heart. come and go in each passage Relationships are the thrust. The family and its members find true of time; changes define life : but belonging and acceptance. Once sown, each individual opens to if goodness and love is central-a bigger world where they in turn treat others as persons with true God will provide the essential. dignity and respect, no matter what race or creed. Idealistic as it may seem, it is doable. But as every builder learns it is done with a wise plan, a meeting of minds and dedication. It will never be built with division. It is carefully crafted with perseverance and fortitude. Quality “features” are installed to withstand the elements. But with a will to achieve the best of ends, it is possible. We must then start building with:

of soul is planted, sprouts of compassion deeply rooted, and where true love and lasting joy is reaped unsparingly. A house which stands on firm ground held by spirituality will have THE REAL AND THE LASTING BEAUTY... Because there, God always finds room!

precious stones, wood, hay, or straw, each builder’s work will be plainly seen, for the Day will make it clear, because it will be revealed by fire. And the fire will test what kind of work each has done. If what someone has built survives, he will receive a reward. If someone’s work is burned up, he will suffer loss. He himself will be saved, but only as through fire. By Nini Salinas-Veloso, art teacher, catechist and homemaker

(one of Lifestyle Network’s Ten Inspiring Women 2009 Never neglect what is rooted and recipient of Working Mom Magazine’s 2009 Balance from above. It is important Awards “Self for Others” for to prioritize on it instead of disregard it. What is the beauty her feeding program Sunshine Club) of a grand and imposing structure whose elegance has no measure? What is a house, if not for it being a HOME? A home where humility, selflessness, giving, understanding, belong. Where members take inspiration from a loving God whose wisdom surpasses the wisest and most learned of men. Where purity


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Changing development and demand Patterns

By: Virgilio S. Monge

for Housing in Metro Manila

t

he demand for the services of real estate service practitioners (RsP) is derived from the need for real estate such as housing. an understanding therefore of the development and the factors affecting the demand for housing is important, since a number of real estate brokers are based in Metro Manila, and in the same manner that a substantial number of their clients are from these areas. the reason in assessing the on-going development and the demand for housing as to how it is affected by the market, economic and environmental conditions is to provide policy makers some insights as basis for the formulation and implementation of policy measures. For RSPs, particularly the real estate brokers and the salespersons, this is important in identifying critical business imperatives and in crafting marketing strategies in their sales campaign.

Duality of Development The sprouting of condominium projects is making its mark in Metro Manila thru high-rise and highend variants particularly along the Land Rail Transit (LRT) and Manila Rail Transit (MRT) routes and major thoroughfares. a sprinkling of low-rise and low-cost condominium projects is also making headways along inner but accessible roads. The transformation of Metro Manila is a duality of development, where there is the mushrooming of condominium projects in Metro Manila on one hand, and the sprouting of horizontal housing projects in the outskirts of Metro Manila on the other. The sales pitch for projects in the city is convenience, e.g. within the vicinity of the target market’s workplace and lower travel time and cost. We can emphasize on the affordability of projects outside of Metro Manila, e.g. low monthly amortizations that can easily fit in the target market’s monthly income stream. 102 | Real estate WoRld

Land Taxes One factor directly shaping the development and demand patterns for housing is land tax. The scarcity of land for housing in Metro Manila and the increase in land taxes in the last five years have resulted in the wide disparity in the offer price of raw land both in and out the metro for housing (table 1). as a result, horizontal development, such as house and lot packages, in Metro Manila has become less attractive for developers. The business opportunity for housing project inside Metro Manila, however, remains profitable by increasing the floor area as in the case of condominium projects.

Table 1 Average Raw Land Offer Price Range for Housing Inside and Outside Metro Manila As of January 31, 2011 _______________________ Inside Metro Manila Near Commonwealth Avenue Novaliches, Quezon City Camarin, Caloocan City Deparo, Caloocan City Bagumbong, Caloocan City

Price Range ( Pesos/sqm) 6,500 - 18,000 7,000 - 9,000 800 - 2,500 2,000 - 2,600 1,500 - 2,500

Outside Metro Manila San Jose Del Monte City Marilao, Bulacan

350 – 500 750 - 900

Antipolo City (outside city proper) Timbao, Binan, Laguna General Trias, Cavite

500 - 700 800 - 1,300 400 - 600

Source: Based on acquired assets of some financial institutions and interviews with CRBs engaged in raw land brokering.


Meanwhile, land outside Metro Manila is still abundant. Cost of land and its taxes remain relatively low - an attractive undertaking for horizontal developers. Housing Backlog Housing backlog are the housing needs unmet. The pressure being exerted by the housing backlog in Metro Manila is sticking out like sore thumb, providing the developers a major attraction to come up with housing project right in Metro Manila and its environs. Table 2 Projected Total Housing Need in the National Capital Region and in the Philippines (2005 – 2010) NCR 58,412 82,182 82,434 82,689 82,946 83,206 83,469 496,928

Annual 2005 2006 2007 2008 2009 2010 TOTAL

Philippines 195,133 597,362 608,370 619,708 631,389 643,422 655,821 3,756,072

Note: Includes backlog plus new households Source: HUDCC

The housing backlog is expected to continue rising with time. By the end of this year, it is expected to balloon to almost half a million housing units in the NCR and some 3.8 million in the whole country. Increasing Family Income Increasing family income largely affects the demand for housing. the decision to acquire a housing unit is determined by the amount of income stream that accrues to the family in a certain period of time or by the amount of savings it has set aside. there is no available data on savings, but the average annual family income for Metro Manila is shown on Table 3. Table 3 Average Annual Family Income National Capital Region and Philippines 1988 – 2006 Year Philippines NCR 1988 1991 1994 1997 2000 2003

40,408 65,186 83,161 123,168 144,039 148,000

79,314 138,256 173,256 270,993 300,304 266,000

2006

172,730

310,860

The trend in the family income is increasing during the period under review which augurs well with real estate business because rising income enhances the demand for goods and services including that of housing. the above trend is also consistent with the data on construction and real estate ownership and dwellings on the national level which is on the rise in the last four years. This information belie the perception that the country’s economy is teetering on the edge of recession in the midst of global economic downturn in 2008. table 4 Philippine Input-output table for Construction and Real estate and ownership of dwellings (in million pesos) Year and

Construction

Real estate ownership of dwell-

ings 2001 2002 2003

990.5 484.4 1,082.1

309.2 55.6 3,848.3

2004

1,739.6

1,969.8

2005 2006 2007 2008 2009 2010

248.6 558.9 151.8 1,031.3 2,509.1

4.8 4,675.8 4,875.5 9,206.1 241.6 5,674.6

Source: National Statistics Office

Note also from the data that construction is related to the political events in the country,e.g. construction rose after election.

Increasing family income largely affects the demand for housing

Photo Courtesy of Google

Source: National Statistics Office.

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Increasing Number of Call Centers

low Interest Regime The rates on Treasury Bill which serves as basis for lending in the wider market is on the downward trend in the last 5 years (Table 5).

an increasing number of Business Process Outsourcing (BPO) firms are setting-up shops in the Philippines most of which are located in the NCR (table 6).

Table 5 Treasury Bill Rates for All Maturities 2006 - 2010

Table 6 Call Centers in Metro Manila by Location Location

Number

Eastwood

43

Las Pinas City

9

Makati City

328

Mandaluyong City

42

Manila City

41

Marikina City

3

Muntinlupa City

34

Ortigas Center

168

cannot be underestimated. For example, for a rank

Paranaque

3

and file employee with a monthly salary of PHP12

Pasay City

5

thousand, a house and lot worth PHP400 thousand

Pasig City

32

Rizal

6

San Juan

44

house and lot becomes reachable because credit

Taguig

28

effectively lowers the price of the house and lot.

Quezon City

100

With credit, the house and lot package becomes

Total Number of Call

886

YEAR

RATES

2006

5.64

2007

4.24

2008

6.28

2009

4.46

2010

4.21 Source: NSCB

The impact of interest rate on the homebuyers

is simply, from his point of view, mind-boggling. However, thru credit, the PHP400 thousand-

affordable because the homebuyer is granted high

Centers in Metro Manila

loan-to-value ratio and on extended terms. Pag-ibig

Total Number of Call

for example, extends loan as low as 6 percent annual

Centers in the Philippines

1046

interest on loans payable up to 30 years. thus, the prevailing low interest regime provides a much-needed impetus for homebuyers because the low interest rate and the longer term lessen a substantial amount in the monthly amortization.

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Source: Call Center Directory, Philippines


84.7 percent of call centers in the Philippines are located in Metro Manila, mostly in Makati. according to the Department of Trade (DTI), these firms

Upward trend in tourism In the last 3 years, the number of tourists in the country has reached 3 million. This upward

provided jobs to over 500 thousand people.

trend can provide benefit to real estate.

Upward Trend of OFW Remittances The remittances of Overseas Filipino Workers (OFW) is on the rise and appears to be unaffected by any economic slowdown. this is shown on table 7.

Table 7 :Remittances of Overseas Filipinos (2003-2010)

Year

Amount: (In billion US $)

2003

7.6

2004

8.6

2005

10.7

2006

12.8

2007

14.4

2008

16.4

2009

17.3

2010

18.6*

Source: Bangko Sentral ng Pilipinas

*Projected

Table 8 Number of Tourist Arrivals in the Philippines Year 1996 -2009 Number

1996

2,049,367

1997

2,222,523

1998

2,149,359

1999

2,170,514

2000

1,992,169

2001

1,796,893

2002

1,932,677

2003

1,907,000

2004

2,291,347

2005

2,623,084

2006

2,843,335

2007

3,091,993

2008

3,139,422

2009

3,017,099 Source: NSCB

Remittance is very important because it helps fuel the

Tourists would commonly spend for food,

household consumption expenditure, which propels

lodging, transport, shopping, entertainment,

the country’s economic growth.

recreation and even medical services. In the process, it generates employment and income

as per HUdCC estimates, 6 percent of total remit-

for a variety of industries, which may form

tances goes to housing expenditure. The amount

part of the monthly rental if they are renters or

that will accrue to the housing sector is estimated at

reservation and amortization fees if they are

US $1.4 billion or roughly Php 63 billion.

homebuyers.

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Infrastructures like the Skyway will further enhance the demand for condominiums and the demand for low-cost housing located in cities and municipalities surrounding Metro

Photo Courtesy of Google

Implications

Progress is transforming Metro Manila into a jungle of both low-rise and high-rise condominiums especially along LRT and MRT lines and major thoroughfares and even inner but accessible roads. This trend will continue to intensify especially with the construction of MRT 7 which will reach Bulacan, the Skyway being constructed along the South Luzon Expressway, the circumferential roads around Metro Manila and other infrastructures in the pipeline. Incidentally, these infrastructures will further enhance the demand for condominiums and the demand for low-cost housing located in cities and municipalities surrounding Metro Manila.

Furthermore, Ondoy, which inundated a wide swath of Metro Manila, exposed one of its achilles heels, i.e. that it is not insulated from the flood. The catastrophe enhances the demand for condominiums further expediting the transformation of Metro Manila.

Meanwhile, house and lot packages continue to carpet cities and municipalities outside Metro Manila. This trend will proceed well into the future considering the persistent housing backlog in Metro Manila, the emergence of job opportunities such as the call centers, the positive numbers coming from OFW remittances and tourist arrivals and the favorable business environment. the recent enactment of the Real Estate Service act (RESa) augurs well for the RSPs, brokers and sales persons in particular, to prepare themselves for the challenges ahead. *The author is the Founding Chairman of CRESCOOP (Caloocan Realty Services Multipurpose Cooperative and formerly President of REBAP Caloocan Chapter and currently National Director of REBAP.

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MLS5703 ISLAND AREA: CAGAYAN LOCATION CITY: NORTH OF CLAVERIA VILLAGE: NORTH EAST OF CEZA PRICE: 3,800,000,000 L.A. SQM: 6,403 DESCRIPTION: Calayan groups of Island North of Claveria, Cagayan(Approximately 80klm. North East of CEZA, Sta. Ana w/ 6,403 hectares Cagayan)

MLS6457 ISLAND AREA: PALAWAN LOCATION CITY: HONDA BAY VILLAGE: SNAKE ISLAND PRICE: 112,500,000 L.A. SQM: 75,000 DESCRIPTION: An Island in Palawan 7.5 hectares

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MLS1492 ISLAND AREA: PALAWAN LOCATION CITY: PALAWAN VILLAGE: SECAM ISLAND, BALABAC PRICE: 200,000,000 L.A. SQM: 930,000

MLS1291 ISLAND AREA: PALAWAN LOCATION CITY: VILLAGE: TATARAN ISLAND PRICE: 50,000,000 L.A. SQM: 320,000 DESCRIPTION: Near Sidanao Island and Tabon Cave


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REAl EStAtE SEt to SuStAin thE high notE

W

ith overall confidence in the government at record This three million is already a fixed demand that must be highs and the economy surging ahead, National tapped. Of course, the high-end segment is just as lucrative, Real Estate Association (NREA) Vice Chairman Alejansays Manalac, mentioning that 30 units of low-cost housing dro Manalac could only is equivalent to a single unit of high-end housing. depict a bullish property market in the next two to three years. “The real estate indusWhile the real estate industry profits “The real estate started under the cur try has been bucking from the soaring confidence in the gover rent Administration on a high note. trends, growing still, nment and the economy under the We were pleasantly surprised that albeit at a slower rate, current Administration, Manalac notes the market remained active even in even when the global that the infrastructure projects of former the run-up to the 2009 presidential President Gloria Macapagal Arroyo lends economy entered into elec tions when investors were exconsiderable help in fostering a thriving a crisis and uncerpected to stay on the sidelines,” he environment for the sector. tainty lingers,” says adds. Manalac. “There has been an appreciation in The Philippine economy has been grow the value of the properties outside the ing at an impressive rate, the stock mar central business districts because ket is breaking records, and the Philippine peso has of the establishment of air and land been gaining against the dollar, notes Manalac. “We transport networks. This occasioned had a good start that is set to continue based on the spread of the real estate developthe latest developments in the industry and the ments out to the provinces,” Manalac general economy”, he adds. details. The enactment of the Real Estate Services Act, according the Manalac, is set to significantly up the confidence of the buyers. He likewise intimates that having an aggressive Housing and Urban Development Coordinating Council Chair as Vice President Jejomar Binay is sure to help fire up the industry, which has a low-cost housing backlog of about three million units. 110 | Real estate WoRld

Manalac likewise expects these infrastructure projects to fuel the development of the tourism industry, which is a key source of growth that remains largely untapped for the real estate sector. Next to home buyers, and lifestyle upgrades, tourism is the third most lucrative market for real estate developers, But it is a reactive one so the government needs to effectively develop and promote it, notes Manalac-RJA.


RESA a boon towards industry professionalization

W

hile the bulls of the real estate industry have shown no signs of running out of steam, NationalRealEstateAssociation(NREA)ChairJose Manalad believes that the industry can still do better.

There is a need to elevate the status of the industry and strengthen its contribution to the national economy, says Manalad. Having universities offering a bachelor’s degree in real estate would help ensure the provision of quality real estate services, says Manalad; hence, the reason he once tried to court a university to introduce a degree program in said course four years ago. With the enactment of the Real Estate Services Act (RESA), Manalac could not be any happier. The law, which aims to professionalize the industry, requires would-be real estate practitioners to have a bachelor’s degree in real estate. Manalad, however, does recognize the difficulty that said requirement brings, considering that real estate providers already have a bachelor’s degree. He thus welcomes a proposal that these graduates may go straight to third year when major courses are introduced, provided that they have taken the necessary general subjects that are offered in the first two years of a bachelor’s degree program. Under the law, a licensed broker is needed to supervise a maximum of 20 agents, a move that deemed unnecessary by some. The controversy about the RESA, however, is not confined to the bachelor’s degree requirement. Manalad notes that the requirement to supervise agents by a licensed broker does not sit well with some players in the industry. “While I do understand the sentiments of those who are opposed to the said requirement, the law has been enacted and we ought to toe the line set by the law,” says Manalad.

“A lot of graduates of other professions end up in real estate. So why not offer this program as early as in the undergraduate level,” says Manalad.

One can introduce an amendment to the law but until then, the law should be implemented, he adds. Of course, even without the law, Manalac likewise mentions that the industry will move on, but maintains that the RESA is one major step in transforming the industry. If that major step is nipped in the bud, Manalad says that he will continue making the necessary steps towards maximizing the full potential of the industry. “NREA, for instance, will continue to educate real estate practitioners not only in Metro Manila but also those in the provinces.” Manalad also intimates about exploring the possibility of having a foreign university off-shoring its services to those who wish to take a bachelor’s degree in real estate in the country. “A journey of a thousand miles always starts with a single step so we have to start taking that step now if we wish to see the industry move further up in a sustainable manner,” says Manalad. - RJA 111 | Real estate WoRld


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RESA IMPLEMENTATION IN FULL SWING By Hon. Eduardo G. Ong , Ph.D DPA DBA Chairman – PRR - RES - DILG

The Real Estate Service Act of the Philippines (RA 9646), an act regulating the practice of real estate service in the Philippines was signed into law on June 29, 2009 and became effective after publication on July 30, 2009. It aims to recognize the vital Role of real estate service practitioners in the social, political, economic development and progress of the country. It intends to promote the real estate market, stimulate economic activity and enhance government income from real estate based transactions, thus, it shall develop and nurture a corps of technically competent responsible and respected Professional Real Estate service practitioners whose standards of practice and shall promote be globally competitive and shall promote the growth of the real estate industry. The implementing rules and regulations (IRR) after thorough consultations with the stake holders all over the Philippines became effective Aug. 9, 2010 after its publication that triggered the start of the full implementation of RA 9694.

The Professional Regulatory Board of Real Estate service (PRBRES) upon appointment by the President of the Philippines has buckled down into work and has divided the tasks into three (3) phases or stages. The First phase was devoted into consultation with the concerned stakeholders in the Real Estate industry. It dialogued with at least 25 Real Estate Organizations and national associations involved in the practice on the provisions of the RESA law. Inputs and suggestions were solicited invader to be able to craft a judicious, fair and equitable implementing rules & regulations (The IRR was finally approval by the commission on July 24 and became effective on Aug. 9, 2010 after its publication.) The Second phase focused on the implementation of section 20 of RA 9646 which was the “grand father clause licensing without examination.” Those qualified to avail of grand father clause are those duly licensed with Bureau of Trade Regulation & Consumer Protection (BTRCP) of the Dept. of Trade Industry as

Brokers, and Appraisers and Consultants. They are eligible for conversion to PRC license upon compliance of PRC requirements on licensing. Those who were able to procure their license with BTRCP – DTI but never renewed their expired licenses and those who took & passed the DTI Examination but never applied for licensing were also covered by the IRR of RESA. The concerned practitioners are requested to the PRE & PRBRES websites (www. prc.gov.ph and ResacB.d@ yahoo.com) and download the requirement for licensing a to date. The PRB-RES has licensed a total of 3,850 real estate practitioners. Those applications under Sec. 20 are still being accepted by the PRC until its expiration on July 30, 2011. The first PRC licensure examinations for Real Estate Brokers are scheduled on March 27, 2011. It is expected that a total of about 4,000 applicants all over the country will handle the licensure tests. The first licensure examinations for appraisers and consultant are also scheduled on May 29, 2011 where an estimated 1,000 would be – appraisers / consultants

are expected to a queue the line. The Third phase which will be a continuing process will be the Regulation and Development stage. The PRB-RES is reenacted by the law not only to license real estate practitioners but also to continuously supervise and regulate the real estate service practice which moved commence about the 3rd & 4th quarters of the year. The Professional Regulatory Board of Real Estate Service is determined to implement the provisions of RA 9646 and is very responsive on the pulse of the real estate service. It looks forward to a brighten Horizon for the practice in the years to come with highly competent and professional real estate service practitioners at the helm of the industry. Let us all be committed to a highly professionalized real estate service practice in the Philippines.

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New CREBA head vows to pursue industry advocacies Newly-elected President of the Chamber of Real Estate and Builders’ Association (CREBA) has emerged from his semiretirement as “pay back” opportunity to the industry. Charlie Goyareb said that he has not been in touch with the industry for the past seven years, but is forced to accept this role to be part of the solution to problems that are hampering further growth of the industry. Foremost here is the issue on land conversion which is an advocacy with the Department of Agrarian Reform (DAR). He also cites the speedy release of Mayor’s and building permits for developers as major concerns. He likewise wants to lead in the call for tax reforms that will enable more Filipinos to own a house. Goyareb details that instead of the current P2.5 million housing cost for VAT exemption threshold, CREBA is pushing for P3.5 million so that more Filipinos can be able to afford a house. “Instead of going to tax payments, developers can channel funds to offer better finishes, bigger floor areas and additional amenities and services,” he explains. Meanwhile, even as these are urgent, he notes that equally important is the strengthening of CREBA as an organization for it to ably respond to these challenges. 118 | Real estate WoRld


A recent development towards this objective is the MOA signing with the National Association of Realtors in the United States, one of the biggest lobbyists there, to help in capacity building, insurance programs, grants and other technical and marketing inputs. He explains: “The real estate industry has tremendous positive impact on our economy. There are about 68 direct and indirect industries that benefit from the housing sector, 50% of such benefits are expected to be plowed back as new investments or for expansion projects. In fact in other countries, housing is the barometer of economic progress. It will surely be a pity, to say the least, if these benefits will go to waste because of an unfriendly policy environment.” Indeed, instead of facilitating, government is “deterring growth”, he notes. “There is however renewed hope, with Vice President Binay providing the vision, aside from being determined to address the housing gap the soonest time possible. He is definitely an action man with outstanding track record,” he says. He continues: “There is so much work to be done. I can only salute our former head and director Atty. Manny Serrano, for no one can ever fit in his shoes in terms of what he has achieve for the industry. But I will definitely try to give my share to fulfill his dream of a house for every Filipino,” he concludes.

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AFFORDABLE CONDOMINIUMS IN PRIME LOCATIONS t he condominium in Makati was first built three decades ago; they were designed to accommodate the growing number of Expatriates and Businessman especially in Salcedo and Legaspi Village.

The average size of the typical two bedroom unit was 140-180 square meters, and for the three bedroom unit: 200-300 square meters with maid’s room and two parking slots. During those days, condominium- living was a lifestyle for the privileged few. When the call center and BPo industries started to arise, plus the growing number of University relocations in the Central Business District of Makati, developers started to concentrate on building affordable condominiums in prime locations. Businessmen, students, employees, those who are striving in the busy, competitive and diverse area of Makati Central Business District are now privileged to enjoy condoliving, go to different shopping centers, parks, corporate centers and hospital in an affordable and practical terms. Here are some ongoing projects:

Get the best location even if it is a hole in the wall For further details and inquiries please Contact Rene Isidro Brokerhouse, Inc Mobile No.: 0917-433-6484 / Landline: 828-3333 Email: onerenne@gmail.com Address: 100 Perea St., Makati Metro Manila www.condo.com.ph www.brokerhouse.com.ph 120 | Real estate WoRld


HIGH END

LUXURY CONDOMINIUMS

LOCaTION: Rockwell Bel-air, Makati RENTaLS: 2 BR – Php60 – Php100K 3BR- Php100K – Php180K RESaLE: 2BR – Php16M- 24M 3BR – Php20M – Php36M PENTHOUSE UNIT: Php50M

LOCaTION: Legaspi Village, Makati ReNtals: 2 BR – Php100 – Php130 3BR- Php180K RESaLE: 2BR – Php18M- 20M 3BR – Php26M – Php34M

ROCKWELL

SHANG GRAND

LOCaTION: Legaspi Village, Makati RENTaLS: 2 BR – Php100 – Php140K 3BR- Php160k- Php220K RESaLE: 2BR – Php15M- 20M 3BR – Php26M – Php36M PENTHOUSE UNIT: Php52M

LOCaTION: The Fort Global City RENTaLS: 2 BR – Php60 – Php120K 3BR- Php80k- Php180K RESaLE: 2BR – Php12M- 20M 3BR – Php16M – Php36M PENTHOUSE UNIT: Php36M

THE RESIDENCE AT GREENBELT

THE FORT CONDOMINIUMS

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CONDOMINIUM INVESTMENT

TIMING IS THE KEY

do Not WaIt to BUY Real estate INstead BUY Real estate aNd WaIt.

THE CONDO GURU Renne Isidro

When investing in condominiums, understanding timing and the impacts and effects of the economy in the real estate industry are crucial. Like in other industries, supply and demand controls prices in the real estate. If you are looking to buy a condominium as an investment, the first key factor is timing plus the traditional factors such as location, the developer, affordability, features and design and the broker. so when the best time to invest in condominiums, the best time is NoW “Do not wait to buy real estate, instead buy real estate and wait. In looking for a condominium project to invest NoW, search for a condo that is deliverable within the next six months or one year and still offer pre-selling price and terms. LaND is the only product in the world that is not produced anymore. How you put this land into use makes the difference and the

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same way you put time to use – timing – is what makes the difference.

location – most investors consider location as the primary factor in buying a condominium. Buyers want to be in close proximity to things that matter – work, school, church, parks and other places of entertainment and relaxation. Make sure to visit the location of the project and check the progress.

developer – one of the frequent questions asked by the investors revolves around the ability of the developer to finish a project, so buying a condo that is deliverable in 6 months time erases the doubt on the completion of the project. affordability – your financial capabilities place a big role in choosing the right condo unit for you. Remember that units below Php 2.5 Million are exempted from tax and you may acquire up to

two units. If you can make a down payment NOW, begin to invest.

Features and Design

– the more facilities you have at your door steps the better. aside from enhancing enjoyment and quality of life, amenities add value to your investment. the best condo development is the one which has a condotel component as these would add more features and amenities to the condo such as coffee shops, business centers, function rooms and housekeeping services.

Broker – before you make your first step in considering investing in a condominium, make sure that you get a professional broker to assist you. Getting the service of a professional broker would give you the best value for your money, the price the broker will give you is the same as what the developers give. In dealing with brokers, check out the credibility, visit

them in their office, and check out their business papers such as broker license, business permit and affiliations. Beware of the bad wolves in the industry. Just to give investors what projects I would recommend for investment. One Pacific Place located in the heart of Salcedo Village, Makati Central Business district would be an ideal investment. The project is being developed by aCI Group and Cactus Realty Crop., the group that successful built and operates the Pan Pacific Manila. The project is due for turn-over december 2011 and still offers the pre-selling price and terms. For more details of the project, please e-mail onerenne@gmail.com, for more details or information or call 828-3333 and look for Ms. Jesa.


livethelifeyouwantinSalcedoVillage LOCaTION MaP

H.V.DelaCostaSt.SalcedoVillage,MakatiCity

december2011

TURNOVERDaTE: DEVELOPER: aCI Group

Cactus Realty Corp. DevelopersofPanPacificManila

STILL aT aFFORDaBLE PRE-SELLING PRICE aND REaSONaBLE TERMS REQUEST OF PRO-FORMa Contact:JessaFuntanarese-mail: • JhesaFuntanares24@yahoo.comCellphone • no.(+63)910-9222117 123 | Real estate WoRld


Ususan Warehouse: selling Price: P250,000,000.00 address: Bagong Calsada Street, Brgy. Ususan, Taguig City, Metro Manila Property Details: Property is 10 minutes away from Market! Market! Unaffected by Ondoy. Total Lot Area:

17,523sqm

Total Developed Area: Covered:

5,689sqm

Roads:

1,956sqm

Includes: Main Factory Building:

3,600sqm

Office:

504sqm

Grinding Room:

150sqm

Loading Dock:

55sqm

Annex Building:

1,380sqm

-Security Room -Generator Room -Shower/Locker -Canteen

-Garage -Stock Room -Machine Shop -Tolling Area

For Viewing: Regie tagavilla 0927-9855657 507-1725 regie@brokerhouse.com.ph greenhai2010@gmail.com

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Ceramic manufacturing factory Manufacturing plant – 15,000 square meters Finished goods warehouse - 2,900 square meters In a lot area of 3.6 hectares

Factory is located in Angeles Industrial Park – Special Economic Zone, Calibutbut, Bacolor, Pampanga. Total Lot Area: 16,036 sqm Total Floor Area: 4,225 sqm For Lease: P1,700,000.00 per month For Sale: P20,000.00 per square meter

2

1

3

4

Building 1: 668 sqm Building 2: 802 sqm Building 3: 1,098 sqm Building 4: 1,657 sqm

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With the theme, “REITs in the Emerging Market”, the conference delved on the development of the REIT market in Asia, along with issues and topics regarding the introduction of REITs in the Philippine financial market. According to Mr. Ong See Lian, Global President-Elect of RICS, this theme is highly relevant during this time of globalization and the easing of mobility of funds for investment. Particular topics discussed in the conference are on the Asian REIT market, the Philippine REIT Law, and on property appraisal and valuation.

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In organizing the event, RICS also hopes to impart with regulators, real estate community, and investors some of the international best practices in REITs. In a separate interview, Mr. Ong remarked, “there are successful models that the government of the Philippines can emulate. I hope the [Philippine] government will soon find a solution appropriate for the Philippines real estate market if they want to see the development of a healthy and thriving real estate industry in the Philippines.”

Experts on the REIT market and real estate in general presented their respective views and discussion points based on their field of study. Speakers in the conference are Mr. Goh Tian Sui (CH Williams Talhar & Wong Sdn Bhd), Ms. Fong Yee Mei (Malaysia Securities Commission), Ms. Marissa Benitez (Colliers International), Mr. Peter Mitchell (Asia Pacific Real Estate Association), Mr. Ramon Cuervo III (Cuervo Valuers & Advisory, Inc.), and Mr. Simon Landy (Colliers International Thailand). The conference was mostly attended by valuers and

appraisers, investors, quantity surveyors, and construction professionals. “The conference was well attended with more than 120 participants,” says Ms. Vivian Yuen, Senior Communications Officer of RICS Asia. “A lot of members from our supporting partners have also come to attend. The success of the conference solidified RICS’ brand name as an active participant in the formulation of REITs related policies as our members from around the world can draw in their expertise and experience.” One of the speakers, Ms. Fong Yee Mei, is a member of RICS.


Mr. Goh Tian Sui

The conference was sponsored by Davis Langdon & Seah, one of the largest construction consultancies in Asia. Supporting partners for the event are the Philippine Association of Realty Appraisers, Inc. (PARA), the Institute of Philippine Real Estate Appraisers (IPREA), and the Asia Pacific Real Estate Association (APREA).

RICS is the leading international professional organization in land, property, and the built environment. RICS currently has 150,000 members in more than 120 countries worldwide and represents, regulates, and promotes the work of property professionals. After holding its first event in the Philippines, the organization is currently laying the groundwork on strengthening its presence in the country and discussing with local partners to help local real estate professionals qualify for a RICS membership. According to Ms. Yuen, “It is our hope that the Philippines real estate ind

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OVERVIEW OF THE PPP PROGRAM The Philippines Government recognizes the essential role of the private sector as the main engine for national growth and development. In line with this, pertinent incentives will be provided to stimulate private resources for the purpose of financing the construction, operation and maintenance of infrastructure and development projects normally undertaken by the government. The government is willing, on a case- to- case basis, to protect inventors from certain regulatory risks such as court orders or decisions by regulatory agencies which prevent investors from adjusting tariffs to contractually agreed levels. Such regulatory risk insurance could take the form of make-up payments from the government to PPP investors, other guaranteed payments, and adjustments to contract terms. The specifics of the type of protection to be offered by the government, and the mechanisms through which such protection will be offered will be part of the contract terms of each project. Such protection will only be offered for solicited projects which undergo a competitive bidding process. Private sector investors will be selected through open competition under fair and transparent terms. All interested investors will be given a level playing field with reasonable returns and appropriate sharing of risks without compromising the protection of public interests. Through this program, end- users will be provided the adequate, safe, efficient, reliable, and reasonably-priced infrastructure services.

The projects under the PPP Program were selected based on the following criteria: 1. a.

Project Readiness / Preparation For 2011 Rollout i. Feasibility Study to be completed within 2010 to 2011, ii. Completed Feasibility Study being reconfigured for PPP, and iii. Ready to tender in 2011. b. For Medium- Term Rollout and other PPP Projects i. Include in the PPP pipeline projects of the Implementing Agencies and ii. Initial Preparation on going, i.e concept stage, hiring of consultants for Feasibility Study preparation. 2. Responsiveness to the sector’s needs (e.g., part of the transport network system, water supply/sewerage, electric power capacity, etc); and 3. High Implementability (bankable, no major issues). The government is committed to facilitating the approval and implementation process for PPP projects. In accordance with this, solicited proposals will be processed within six (6) months. Qualified PPP proposal must complete all necessary documents to facilitate the approval process. While the BOT Law allows the government to process unsolicited proposals, solicited proposals will be actively promoted. To provide a long – term fund structure to sustain and further promote PPP in the country, the government together with various Multilateral Organizations (MOs) are working on establishing The Philippine Infrastructure Development Fund (PIDF).

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PPP PROJECT APPROVAL AND BIDDING FLOWCHART PROCESS

RESPONSIBLE PARTY

IAs / LGUs

START

Project Submission to

NEDA Secretariat / LGUs

NEDA- ICC (Complete and qualified Documentation) Project Review and Evaluation

Investment Coordination Committee (ICC) NEDA Board

LGUs / ICC Approval: • • •

ICC Technical Board ICC Cabinet Committee NEDA Board

IAs / LGUs / Private Sector Invitation and Prequalification

Preparation and Submission of Bids

Private Sector

Evaluation of Bids

IAs / LGUs Award and commencement of Implementation

END

IAs / LGUs

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By Gino Blefari

Intero Insider – 2011:

slowgrowthwillendthedecline We are about to start a new year that will prove positive upward motion for both our state and local San Francisco Bay Area economy. We’re going to see some job growth, which will help to fuel initial growth in the housing recovery. But it’s going to be a slow start in 2011 – a year of transition is a good way to describe it – and we may not always feel like we’re making progress because of the slow speed.

largest lease for San Francisco office space in five years. Facebook itself recently announced a joint $250 million fund for social application developments. Stocks have been surging at Oracle, eBay, Google, Intel and other Silicon Valley tech powerhouses. And while sales volume has lagged, home prices in the Bay Area rose for 13 straight months through September, according to MDA Dataquick numbers.

Despite how slow or fast we’re moving, we are saying goodbye to the bottom and setting our sites on upward movement in 2011.

These are all very positive signs that the Bay Area economy is already looking up, though we need to be mindful that miracles are not going to happen in 2011.

For housing, I expect to see a rise in sales volume and median prices in California in 2011 from our bottom year of 2010. I think a lot of buyers who’ve been waiting on the sidelines – either for a more secure employment situation or a signal of the market bottom – will finally move and buy. We’ll continue to see high levels of foreclosures, but the market will continue to work through them. In the Bay Area, there are a lot of developments that make me feel optimistic about 2011. Facebook game developer Zynga recently signed the

Here is what I am projecting: Home buyers: Expect the loan process to be long and strict. You will need cash, a solid credit history, appropriate salary and job security. You won’t have the lowest of the low interest rates forever so you will come off the fence in droves in the spring of 2011. This rush may even surprise you as you find yourself competing for offers. Home sellers: The folks at the California Association of Realtors have discussed the tale of two housing markets in

our state: the high end versus the low end. How you come out in 2011 as a home seller really depends on which market segment you are in. Sales of properties valued at less than $500,000 have largely been distressed properties and banks are expected to release more inventory next year. This means sellers of properties in this price range will continue to have a lot of competing inventory. Meanwhile, sales at the high end – above $500,000 – have seen and will continue to see constraints from tightened lending.

expansion of the exporting and technology sectors, and an expected rise in personal incomes are all factors we have working for us. We are still the eighth largest economy in the world with a gross domestic product of some $1.8 trillion. It takes a lot to keep us down, and it will take a lot to pull us back to normal. 2011 won’t be remembered as a breakout year of growth, but it will be the year we turned the economy back around – the year we needed to transition from decline to moving up.

The prognosis? It won’t be the best year to be a home seller in 2011, but be patient as there are buyers on the sidelines waiting to jump in. Homeowners: Underwater owners are a wildcard in the forecast next year. I don’t see the trend of walking away from a mortgage ending completely, but hopefully some of the positive economic news will create a much needed sense of security for these folks. The transition we need We have a lot going for us in 2011. Our state’s sheer size of nearly 37 million residents, 137 | Real estate WoRld


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