P20-B property dev’t

BY RUBY ANNE M. RUBIO, Senior Reporter Cebu City — Federal Land, Inc., the property arm of Metrobank group, plans to spend about P20 billion in 10 years to transform the 25-hectare property it owns in Fort Bonifacio together with Bases Conversion and Development Authority (BCDA) into a central business district. On the sidelines of the first anniversary celebrations here of Marco Polo Plaza Cebu, Federal Land Chairman Alfred V. Ty said in an interview that several groups from Asia have expressed interest in the Fort Bonifacio project, which will take almost 10 years to complete. He declined to disclose their identities. Federal Land started refurbishing and further developing the Cebu hotel property in late 2005 — then known as Cebu Plaza Hotel which was a foreclosed asset of Metrobank — under a management contract that tapped the Marco Polo Hotel Group to operate the hotel. Federal Land has tapped global design firm Hellmuth, Obata & Kassabaum, Inc. (HOK) International Ltd. to complete the master plan to develop the northern part of the Bonifacio Global City in Fort Bonifacio. It will cover the 10.4-hectare property owned by the country’s largest lender, Metropolitan Bank & Trust Company (Metrobank), and two lots totaling 15.3 hectares of state-owned BCDA. "The place is designed for mixed use. It can’t just be all retail or commercial. It will be a mix of different components such as office, hotel, residential and retail. We think our 25-hectare property will be in a good position to complement with the existing Fort Bonifacio development where the core is. I think it could work well. We are cognizant of the plans they have there," Mr. Ty said. It is a "possibility" that Federal Land will tap Hong Kong-based Marco Polo Hotel Group for the five-star hotel facility it plans to build. Mr. Ty said his firm has not reached any agreement yet, although Marco Polo Hotel has been eyeing to operate a hotel in Metro Manila next. "We have not gotten to that stage yet, but we might [partner with Marco Polo]. It is too early of a discussion stage; we are happy with Marco Polo Plaza Cebu. They are doing a very good job with us here in Cebu," he added. In a separate interview, Marco Polo Plaza Cebu General Manager Hans R. Hauri said expanding would be "very beneficial" for Marco Polo Hotel Group, which has a portfolio of 10 properties in Asia, including the two hotels in Davao and Cebu. "If we can have a third hotel in the capital city [Metro Manila] where the opinions are formed... we are known as a brand delivering high quality service; this will carry over from Cebu and Davao," he added. Property development has been cited as one of the economy’s bright spots, attracting as its latest big entrant, taipan Lucio Tan, via Eton Properties Philippines, Inc. "I think it is a welcome news that there are more players, more developments; the right developer comes along establishes creativity in the market. I believe they have very good properties also," Mr. Ty said. "This real estate boom we are experiencing for now does not have to be a short-stint cycle. The government and private sector have to work together. The real estate industry can really be a big motivator for the economy." "I think the developers have proven their resilience during the crisis period and we still kept developing and coming up with innovative products... on how to make it more attractive and more affordable to the people," he added. ‘Very busy right now’ Asked whether Federal Land intends to develop some idle properties of Metrobank, Mr. Ty admitted the country’s largest lender has a lot of interesting assets. "I think we will have enough properties to work on for many years with the bank. Of course, the bank is not tied up with Federal Land; they have to look at best offer. We like to be a major player. Right now, in terms of land, under Federal Land group, we have our hands full. Combining it with what we can get from Metrobank group will keep us very busy right now," he said. The property firm is spending P5 billion for the development of four projects, including two properties which are joint ventures with Metrobank. These are the 9,000-square meter property along E. Rodriguez Ave., which will be called Capitol Towers, and the 1.5-hectare property in Pasong Tamo to be turned into a residential development. Federal Land will also develop its 17-hectare property in Marikina and 40-hectare Bay Gardens project in Pasay into a township development. Funding will be internally generated, although it will also come from pre-selling and borrowing from banks. Niche retailing Mr. Ty said Federal Land has entered into niche retailing with its Blue Wave restaurant strips, and its township development near mall tycoon Henry Sy’s SM Mall of Asia, although he said the expansion of their strip malls are "not as aggressive." "The motivation for us is to support our township developments. You can’t just have a development with all residential developments. You need a place where people can entertain themselves, shop and relax," he said. The Tys are also in China, where they have put up an office building, called Metrobank Plaza, in Shanghai that will be "the new home" of the George S.K. Ty-led bank. Beside it is the residential condominium, called Baguio Mansions, "to promote the Philippine name," Mr. Ty said. In Nanjing, they also have a residential development, called Baguio Gardens.