Federal Land to launch four more projects before year ends

Federal Land, the real estate arm of the Metrobank Group, is set to launch four more residential projects as the property sector slowly recovers from the impact of a worldwide recession. Some P5 billion will be allotted for the development of these projects, company officials told reporters. Internal cash and equity infusion will be used to finance Federal Land's upcoming projects. “We are planning three to four more projects within the year in Metro Manila. In Marikina, Makati and Quezon City and Manila. What is helping the property sector primarily is the sentiment brought about by the improvement in the US economy, and the very low - record low interest rates. That is expected to remain low in the next couple of years. So we don’t see any more weakness in the property market. It's all [ on the] upside from here. Although slowly," said Alfred Ty, Federal Land president. The Marikina project , a medium-rise and is targeted for the middle market, will be a continuation of an existing development of the company while the project in Manila will cater to the Chinatown market. On the other hand, the project in Quezon City will be a continuation of an existing development where Federal Land already has one tower. “We are launching a second tower. It's near St. Luke's (hospital)," Ty said. Meanwhile, The Grand Midori Makati, a joint venture with Japanese company Orix Corp. , is already 50 percent sold out. The project, intended for the high-end segment of the market, was launched in 2008. The company defines high-end segment as units with prices between P4 million and P20 million, depending on the size, and the middle market as units with a price range of below P3 million. Buyers were mainly local residents with a “sprinkling of foreigners such as Japanese and Caucasians from Europe and the US," Ty added. Despite the sales slowdown in the last quarter of 2008 and the first quarter of 2009, Federal Land said it is on schedule with its construction target. The company is expecting to turn over units to owners in 2012. “We’re on schedule with the construction. The commitment of 2012 will be followed. We just went ahead with the design, just went ahead with the awarding of the construction and putting the thing together. It’s on schedule," Ty said, Owing to its location, Ty said the project has been attracting a number of investors or those who will lease out or resell their units. Before the year ends, two more price increases for the Grand Midori are set to be implemented by the company, he said. These will bring additional buying cost to between 10 percent and 15 percent for the project's units. Following its partnership with Orix, Ty said Federal Land remains in communication with other Asian companies for potential joint ventures. “We are in constant communication [with them]...because we have to convince them that the Philippines is shielded from what’s going around," he added. With huge tracts of land in various areas in Metro Manila, Federal Land is in no rush to go on a partnership with the government. “In the Macapagal Boulevard area, we have 40 hectares. We have 17 hectares in Marikina. We have another 10 hectares in Fort Bonifacio. We have 18 hectares in Multinational (Paranaque)," said Jose Mari Banzon, Federal Land executive vice president and general manager. "We have been focused on residential high rise, so it’s always good to diversify especially with the kind of land bank that we have. It's actually a very unique position as far as real estate development in Manila is concerned," he said. The company's other properties are in Cavite and Cebu. Marco Polo Hotel is located on Federal Land's property in Cebu. -Cheryl M. Arcibal, GMANews.TV