Ms sect c 20170430 sunday

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SUNDAY, APRIL 30, 2017

Business

Ray S. Eñano, Editor / Roderick dela Cruz, Issue Editor business@manilastandard.net

NOVELIST WANTS TO REWRITE PH REAL ESTATE INDUSTRY

I

t takes about 24 minutes to go down a 30-story residential building with 1,200 units near a commercial business district in Metro Manila—sometimes longer than it takes to travel to work.

“This is because of the congestion in queuing at the elevator,” says Prof. Enrique Soriano, a real estate expert from Ateneo Graduate School of Business. Soriano says “cookie-cutter” units like this now abound in Metro Manila. “It is happening to a lot that we have been monitoring. This is because their value proposition is low price. But in the end, it is going to boomerang in the industry itself. That’s what scares a lot of people like me. Watch out for developers who are cookie cutters, who have no value to offer,” he says. He says unit owners of low-value real estate units are likely to default on their monthly amortization, because of the bad experience with the units. “If you compute that in multiples of 100 who will default, it is now a problem of the bank. Your default rate is going to affect the viability of the banking industry and the property sector,” he says. This emerging situation in the real state sector is what Rex Drilon II tries to avoid. Drilon, an author and property executive, reemerged from retirement five years ago to establish a company that aims to offer better real estate products in the country. He is the author of“Patriots on the Street,”a novel about love of country. Keyland Corp., a five-year-old company established by Drilon, started its business renovating buildings in Makati City like the one at the corner of Ayala Ave. and Paseo de Roxas. Seeing the need for better-quality condominium units, Keyland introduced Casa de Sequoia in Las Piñas City for first-home buyers and has recently launched 110 Benavidez Serviced Residences in Makati City for the investor market. Casa de Sequoia is a one-hectare property project with six low-rise buildings that cater to the affordable market. Other ongoing projects are Signa Designer Residences and Southkey Place. “We envision ourselves as a niche player. We started with zero landbank, as against Ortigas with 4,000 hectares to start with or Ayala with 600 hectares to start with. There are other bigger players. The intention of Keyland is really to create its own niche, no different from when we were running Ortigas,” says Drilon, a former chief operating officer of Ortigas & Company Limited Partnership who helped transform Greenhills Shopping Center into the most profitable mall in the country on per square meter basis. He also headed several units of developer Ayala Land Inc. Drilon, the founding chairman of Keyland, says the company’s goal is to offer great value to homeowners and investors alike. “There is value in identifying your core competence, core market. Keyland is still a startup. Our board approved just last month a 10-year investment program that will invest significant numbers. The vision is to be one of the key players in the industry, not necessarily the biggest, but probably [with] the best value-formoney,” he says. Keyland also teamed up with The Ascott Ltd. of Singapore, the world’s largest international serviced residences operator, to launch 110 Benavidez Serviced Residences in Legaspi Village, Makati City. Keyland president and chief executive Jose Ma. Montinola says the company started by renovating old office buildings and leasing them out to business process outsourcing companies and other tenants. “Our chairman’s strategy then was to buy existing buildings, do a quick retrofit, magically turn it around and start leasing. That’s what we did for three office buildings in Makati. They were all existing office buildings. We didn’t tear them down. Tearing them down would entail four or five years to finish. So we bought them, renovated them in

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NOVELIST.

Keyland Corp. chairman Rex Drilon II nine months and leased them in 12 months. Our office buildings are all 100-percent leased out. Once we had the cashflow, we started doing residential,” says Montinola. Keyland now operates five office buildings with a combined floor area of 50,000 square meters. Montinola says the next stage is the development of residential buildings such as Casa de Sequoia and 110 Benavidez Serviced Residences. “It took us a year to get some traction [for the first project]. Now, it [Casa de Sequoia] is almost sold out. It took us a while, but once we finished our first building, the market saw the price point. It is really value for money. That’s why we now have a faster velocity with our projects,” he says. Keyland has more projects in the pipeline. “Most of our projects are owned 100-percent by Keyland. But we also have a joint venture partner for two Alabang projects. We also have a joint venture with Robinsons,” he says. “After this, we have a property that we recently acquired in Salcedo Village. We are in the planning stage for that. We have another property in Legaspi Village. That’s also in the pipeline. So we have two more in the pipeline,” Montinola says. Montinola says 110 Benavidez Serviced Residences, a 32-story residential tower near Greenbelt in Legaspi Village, will have 209 units, including 67 private residences and 142 serviced apartments that will be managed by Ascott under the brand Citadines Benavidez. He says the project is aimed at the investor market, who can afford to shell out P7.5 million to P15 million for studio, one-bedroom and two-bedroom units that will have an annual return on investment of 6 percent

to 8 percent. The project is expected to be operational by the first half of 2022, according to Ascott regional general manager for the Philippines and Thailand Arthur Gindap. Gindap says Ascott, which is led by Singaporebased Capital Land, is now the world’s largest operator of service residences, referring to hotel units that are designed for long staying guests. “In the Philippines, half of our business is in the hotel model,” he says. Ascott, which owns the brands Ascott, Citadines and Somerset, aims to develop new brands for the millennials. “In the hospitality space, the return that we offer is the highest in the industry,”says Gindap. “By 2020, we will have around 5,000 units in the Philippines. That translates to about 25 to 30 properties. So we are quite bullish.” Montinola says the partnership with Ascott is in line with Keyland’s value proposition. “We always want to come up with a product that is unique, that has a certain appeal to whatever target market we are looking at. We don’t want to just keep doing condos, just like everybody else. We have a selling proposition,” he says. Keyland is investing P1.2 billion in 100 Benavidez and expects to generate P2 billion in sales. The unit is being sold at P220,000 per square meter, but it will be fully furnished into a hotel room. The project will also have a rooftop infinity pool, fitness center and hotel lobby. Keyland signed a 15-year partnership agreement with Ascott. “When you have a partner like Ascott Turn to C2

Kickstart President Minette Navarrete introduces Globe Future Makers Program to the local startup community.

GLOBE ENGAGES FILIPINO STARTUPS GLOBE Telecom has engaged the local startup community to be part of Globe Future Makers, a social innovation program which seeks to adopt game-changing digital solutions to address various causes of poverty in the country in line with the company’s sustainability commitment to create positive societal impact. Startup founders and members met with Globe representatives at the recent staging of Kickstart Venture Inc.’s signature startup community mixer Raid The Fridge, a monthly open networking event that gathers startup founders for opportunities to learn, engage, or collaborate with investors, developers, corporations, the government and even with media. During the presentation, Globe invited the startups to participate in the program and be part in bringing about positive changes especially to the marginalized sector of society as a response to UN Sustainable Development Goal No. 9 which calls for investment in infrastructure and innovation to find lasting solutions to both economic and environmental challenges. “Poverty, the lack of access to quality health care and education, the negative impact of climate change to the environment, and the displacement of communities due to armed conflict remain society’s most pressing and pervasive issues. These are the issues that the Globe Future Makers Program wants to address. By offering efficient, sustainable solutions for the bottom and middle of the pyramid, startups can make massive impact to help drive social development in the Philippines,” said Minette Navarrete, president of Kickstart, the country’s leading venture capital firm and wholly-owned subsidiary of Globe. “Globe and Kickstart believe that systemic solutions are possible! Startups focused on solving social problems can use technology to make impact at scale, and the Globe Future Makers Program is intended to support social innovation, so that we can build a better future for everyone,” said Navarrete. Th e p ro gra m i s o p e n to anyone with a working prototype, preferably a pilot test done with potential beneficiaries. Entries should clearly articulate how technology is being used to optimize the social impact of the organization on the four focus areas, namely healthcare, learning and education, climate change, and peace and order. Application will be accepted until May 7, 2017, after which, selection and evaluation of all entries will be conducted.

BAYAN ACADEMY, JPMORGAN BOOST FILIPINO ANIMATORS’ SKILLS BAYAN Academy’s Technical and Livelihood Center, in partnership with JPMorgan Chase & Co., has recently completed a Technopreneurship course on 2D and 3D Animation NC III in Quezon City. The four-month program for 2D animation and five-month program for 3D animation aim to equip aspiring Filipino animators with the necessary skills essential to their success and critical to ongoing efforts of both public and private institutions to boost job creation within the animation industry in the country. A total of 50 graduates received their certificates of completion from Bayan Academy for successfully completing 840 and 1,040

hours of classroom training in the 2D and 3D Animation NC III courses, respectively. They also finished at least 120 hours of internship which included project immersion to further enhance their competencies, and test their attitude and workplace relationships. Of the 50 graduates, 47 already passed the TESDA assessment; while the remaining 3 are scheduled to take their tests. Graduates of 3D animation who One of the scholars is 21-year old are scholars of Bayan Academy and JP Pamela Ladrillo who is currently employed Morgan Chase by a local animation studio. According to her, the training she received prepared her to find women animators, I’m confident for the demands of the job. “I learned a lot that I can compete amongst the best in from my training and while it is uncommon the industry. I am now a 3D animator but

my employer -– impressed with my work –- saw my potential to do 3D modeling too,” Pamela said. For one of the grant beneficiaries, Marlon Rapsing, the course helped him fast-track his career in Animation.“The skills I’ve learned, plus the exposure and training I’ve received helped me deliver high-value creative services which made me stand out from the competition,” he said. Rapsing is now with Tycoon Animation, the fastest growing animation company in the Philippines, as a junior animator along with five former trainees. Sharing Rapsing’s success story are six other graduates of the program who are

now 2D and 3D animators in Dreamlords Digital, a direct-to-digital studio based in Las Vegas and Manila, specializing in games and gamified apps. Another inspiring grantee is Marissa Cassica who left her previous work to pursue her passion. After finishing the program, she was accepted in September 2016 as an artist and production officer at SGNFX, an integrated in-house design and manufacturing company. After three months, she was promoted to operations division head managing at least 20 people from different departments such as administration, purchasing, design, sales and production.


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