‘To give houses that Filipinos can afford’

By Tina Arceo-Dumlao
Philippine Daily Inquirer

 12 350 239

JANUARIO Jesus Gregorio B. Atencio III

All the talk about a dangerous bubble emerging in the country’s robust real estate market has understandably raised the stress levels of the already wary investors, buyers, lenders and developers.

After all, grim memories of the 1997 currency crisis that led to the demise of many high flying real estate companies that rode on easy credit still haunt the corporate world, which saw a series of high profile bankruptcies, long drawn out debt restructurings and painful cleaning up of balance sheets.

The publicly listed 8990 Housing group, however, is not occupied by thoughts of an asset price bubble that is ready to burst anytime as it has purposely concentrated its resources on mass housing projects.

According to 8990 Holdings President and CEO Januario Jesus Gregorio B. Atencio III, there will always be demand for affordable housing in the Philippines, with its young and growing population that is gradually increasing its purchasing power.

Atencio tells SundayBiz in an interview that while supply is fast catching up with demand in other sectors of the real estate sector, particularly ultra high end condominiums, there remains a sizable backlog in mass housing to the tune of four million units, with demand growing at 3 to 5 percent a year.

Mass housing is defined by 8990 Holdings as units costing a maximum of P1 million and Atencio says that in this sector, the challenge is not so much to find the demand for the units, but more on improving the ability of the potential buyers to purchase them.

“Housing finance is always an issue,” Atencio says in an interview, particularly in the aftermath of the Globe Asiatique controversy that caused government housing agencies to tighten controls and raise credit standards.

Atencio shares that the government understandably slowed down on the release of housing funds to borrowers. The relationship has likewise changed in that the government is now more of a regulator rather than a partner.

Demand remains great, however, thus it falls on developers to find alternative means to help the buyers acquire their dream house.

“To help solve the housing backlog, there has to be more funds, Pag-IBIG is not enough. That is one reason why we went to the capital market,” says Atencio. “We went there as an organization that is growing because we believe that there will come a point when the banks would not be able to lend anymore because of the single borrowers limit.”

Atencio is bullish on the growth prospects of the mass housing unit, which he admits is quite young at just a little over 10 years old compared to its bigger competitors in the market.

“I say we have two unique selling positions, one is that we can build the houses very quickly and that we have a very affordable in-house financing program at about 8.5 percent payable over 25 years,” says Atencio, “so when Pag-IBIG tightened, we were able to come up with a financing package that looked like a Pag-ibig loan.”

Atencio, who has been involved in the mass housing sector for 20 years, the past 14 as chair, president and CEO of various mass housing and subdivision development companies, says it pays to know the market well, as it enabled the company to formulate a program that fits the spending and earning patterns of middle class Filipinos.

8990 Holdings, for example, usually requires a down payment of just P20,000 and not 20 percent as sought by other developers.  And by completing the projects as fast as it can—as short as 20 days thanks to prefab technology—it helps the buyers move in quickly and save them money from renting.

“All of these factors come together to serve a ‘need’ market. If I give buyer a 20-percent equity requirement, I have just saddled him with the prospect of paying rent and paying me. That stresses the cash flow and the market that I serve doesn’t have much savings. So I am being realistic,” says Atencio.

The 8990 Housing group, through flagship company 8990 Housing Development Corp., also goes where the market is, mainly outside Metro Manila, particularly in Cebu and in Davao.

Its biggest project so far is the Deca Homes Resort Residences in Davao City with 6,589 sellable lots, ranging in size from 100 to 150 square meters. Other projects include the Deca Homes Mactan 4 with 1,248 lots; Urban Homes Mandaue I condominium with 52 units and the Deca Homes Subdivision Phase 1in Pavia, Iloilo with 73 sellable lots.

8990 Holdings officially entered the mass housing sector in 2003 and has so far completed 11 projects and sold 22,130 housing units in Angeles and Cavite in Luzon; Cebu and Iloilo in the Visayas and Tagum and Davao cities in Mindanao.

It also has a land bank of 242 hectares and plans to launch 13 new mass housing projects under the “Deca Homes” brand for horizontal subdivisions and “Deca Urban Homes” for medium rise buildings.

As of the first nine months of 2013, its profit jumped 64 percent to P2.1 billion from the P1.28 billion recorded in the same period the previous year, on the back of brisk demand for affordable housing in the Visayas and Mindanao.

The group is majority owned by Atencio, Luis Yu Jr. and Mariano Martinez. It recently completed a backdoor listing on the Philippine Stock Exchange through IP Converge Data Center.

The group, through 8990 Housing Development Corp., 8990 Luzon Housing Development Corp., 8990 Davao Housing Development Corp., 8990 Leisure and Resorts Corp., 8990 Mindanao Housing Development Corp. and Fog Horn Inc., acquired 3.83 billion shares in IP Converge, giving it control of the listed company.

It also recently secured the approval of the Securities and Exchange Commission to sell as much as P13 billion worth of shares through a follow-on offering.

It expects to raise some P6.4 billion from the primary offering, which will go mainly to landbanking and working capital requirements.

From the provinces, the group is now setting its sights on increasing its footprint in Metro Manila, which remains the prime market for real estate development.

The group is also boosting its presence in the tourism sector through its time share business, which it entered three years ago through Azalea Residences in Baguio City.

Atencio stresses, however, that 8990 Group will not turn back on its core competence, which is providing quality homes at mass housing prices.

“We have to consciously stop ourselves from going for the higher markets. We have to be conscious and tell ourselves to stick to the market that we know best,” says Atencio.

“It is really nice to be able to give houses that most Filipinos can afford,” adds Atencio.

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PH boom fuels interest in Anvaya Cove

INQUIRER.net US Bureau

 27 48 6

MORONG, Bataan – Developers of the newly christened golf course at Anvaya Cove Golf & Sports Club are hailing the facility not merely a robust symbol of the Philippines’ upwardly mobile economy, but also as one of it’s strategic byproducts.

The economic outlook for The Philippines continues to outpace those in ASEAN, and a political settlement in the south has quelled 40 years of sectarian strife.

A rise in domestic spending and foreign investment-fueled public infrastructure projects (with its attendant community of expatriates) all bode well for real estate ventures the likes of Anvaya Cove.

It is a 470-hectare development two hours northwest of Manila, where stately homes are nestled in distinct and secluded tropical neighborhoods south of the Subic Bay Free Trade Zone.

“With Anvaya Cove, we saw the opportunity to meet demand in the Philippine domestic market while also competing effectively in the international second-home market,” said Jose Juan Jugo, head of Ayala Land Premier, the residential wing of Ayala Land.

The company is considered the country’s most accomplished real estate developer and is the commercial force behind Makati, Manila’s premier business and lifestyle district.

“We’ve already welcomed retired expats who’ve chosen to make Anvaya Cove their primary homes,” added Jugo. “With a golf course of this quality now in place, we anticipate further interest in this sort of investment — from what we see as a global market.”

Designed by the Santa Rosa, California-based Golfplan, the new course is getting most of the attention these days. It’ has already been heralded by multiple golf publications as Asia’s best new course for 2014 (and the best to open regionally since 2010). In March, the course earned an Asia Pacific Property Award in the hyper competitive Architecture category.

Not golf alone

But golf is merely the capstone amenity at this exclusive, seaside development.

Two classes of ready-built units are now available to both Filipino and foreign national buyers:

• Seascape Ridge, leisure units are designed with the comforts and functionality of a traditional home, available since 2009 where each quad unit (both two-and three-bedroom) range from 167 to 187 square meters of floor space. Located high on the property, with views of the golf course, the West Philippine Sea and the mountains of Bataan, these individual units are available for an average investment of $343,407 USD.

• Sea Breeze Verandas, a cluster of six low-rise buildings launched in 2010. They occupy four prime hectares of the community’s highest point, some 120 meters above sea level. The Verandas offer thoughtfully designed, ready-to-move-in units for what the developers call “hassle-free living” (not to mention stunning, panoramic views of mountains and sea). The average price here is $183,150 USD.

The majority of Anvaya Cove’s 830 single-home lots, which range from 400-1,600 square meters, have been sold. Those remaining lots (they were launched in 2005) are priced at $125,915 USD, and these are reserved for Filipino citizens.

Ayala Land Premier has extensive experience in master planning high-end golf real estate communities in the Philippines — at properties like Ayala Alabang, Ayala Hillside Estates and Ayala Greenfield Estates. Anvaya Cove takes this proven formula and kicks it up a notch in terms of luxury and the range of investment options. It’s also Ayala Land Premier’s first development in a seaside setting.

Parent company Ayala Land, Inc. (ALI) grew its net profit last year by 30 percent to a record-high of P11.74 billion, exceeding targets on the back of strong growth across all business lines.

Boom byproduct

Such a performance from ALI is another byproduct of the Philippine economic boom, as the country continues to attract investment capital and expatriate populations from across Asia-Pacific. This has only furthered the momentum at Anvaya Cove.

“The aesthetic allure of Anvaya Cove is the thing one notices first,” said Jugo. “This is the dividend we realize from finding such an extraordinary physical environment — right on the West Philippine Sea, but with enough elevation throughout to afford views across the property to Subic Bay and beyond. That said, these units have proved to be extraordinary investments. The development of Seascape Ridge and Sea Breeze Verandas were developed to allow international homeowners/investors to take advantage of what is clearly a broad expansion of the economy here.”

Evidence of this expansion is equally broad and widespread:

• In its report “Asia-Pacific Outlook 2014: Realizing Potential,” Moody’s Analytics predicts The Philippine economy will grow at 7 percent this year (a figure corroborated by the World Bank) and not merely outperform its neighbors in Asia, but also rank among the world’s fastest growing economies.

• Moody’s Analytics is a sister unit of credit watcher Moody’s Investor Service, which gave the Philippines its third investment-grade status in 2013. Business confidence is high, and investment, both public and private, is driving the Philippine economy forward, the report says.

• During the last decade, the government has matched or exceeded International Monetary Fund recommendations, thereby capitalizing on the nation’s economically favorable demographic growth potential: A nation with the youngest population age and most historically stable fertility rate in Asia.

• Goldman Sachs estimates that by the year 2050, the Philippines will be the 14th largest economy in the world. Goldman Sachs also included the Philippines in its list of the Next Eleven economies. According to HSBC, the Philippine economy will become the 16th largest economy in the world, 5th largest economy in Asia and the largest economy in the Southeast Asian region by 2050.

Another key economic indicator for the Philippines has traditionally been the level of money sent home by so-called OFWs (Overseas Filipino Workers).

These remittances fuel domestic consumption. Last year’s figures are still to be formally tabulated, but OFW remittances are expected to have grown by 5 percent in 2013, to a record high $22.5 billion.

“In fact, we have a significant number of OFWs buying in Anvaya Cove, with the intention of eventually using these properties as retirement homes,” said Jugo.

“Of course, OFWs see this as an idyllic place to come home to. But like any buyers, domestic or international, they mainly recognize it as a sound investment.”

For your retirement and other real estate needs, please visit http://www.gregmelep.com

Masbate keeps rodeo hopes alive

By Shiena M. Barrameda
Philippine Daily Inquirer

 23 72 13

CATTLE ROUNDUP Cattle herding or cattle penning is one of the events in Rodeo Masbateño in Masbate City, which tests the competitor’s patience with coaxing at least 200 heads of cattle into a small pen. RONNEL JOSEPH COMPETENTE/CONTRIBUTOR

With both feet grounded on the small view deck put up at the rodeo arena in Masbate City, Leo Gozum scanned the rectangle of dusty soil where local cowboys would be competing for the glory of victory in this year’s Rodeo Masbateño.

Gozum, 40, rodeo director and head of the technical committee of Rodeo Masbateño Inc. (RMI), was taking charge of the activities while waiting for his daughters—Bella, 4, and Ria, 3—to arrive at Masbate City Rodeo Arena and watch the finals of the main events on a scorching Tuesday afternoon.

“I taught my kids how to ride horses even before they learned how to walk,” he proudly said.

Gozum is also a cowboy-cum-farmhand who teaches children as young as 3 years old and teenagers the basics of farm and ranch life for free, along with other colleagues, to qualify them for membership in Volunteer Rodeo Officials of Masbate (VROOM).

Members of RMI founded VROOM in 2002 with the avowed purposes of passing on the rodeo culture of Masbate to the next generation and of encouraging the young to ultimately go into cattle raising and farming to ensure the socioeconomic future of the agriculturally dependent province, Gozum said.

Rodeo babies

Twelve-year-old twins Destiny and Sofia Arizala, both members of the VROOM, are already considered experts in lassoing and penning of cattle, horseback riding, bull whipping, cattle branding and other skills needed for cattle raising.

Their father Sofronio, 51, a public elementary school principal, introduced them to farm animals early, they said. He taught them horseback riding when they turned 11.

The sisters have been training on basic and competitive rodeo skills since last year. Sofia plans to join the carambola (group cattle wrestling) event, while Destiny prefers the noncattle event of bull whipping.

“Kids will always feel fear at first (at riding horses and handling cattle), but we teach them how to treat animals correctly so they are not threatened and put in danger,” Gozum said.

Future ranchers

The children are taught how to interact with animals, said John Paul Dimen, 27, Gozum’s second-in-command and himself a trainer of young rodeo enthusiasts.

At first, they learn how to ride horses and brand cattle. Later, they are trained to tackle mature cattle, weighing 350-400 kilograms.

Masbate needs more rodeo enthusiasts and cattle raisers to keep its agricultural industry afloat, he stressed.

Those comprising the first batch of VROOM students are already in college. Many have opted to take agricultural-related courses.

City Mayor Rowena Tuason described efforts of RMI with VROOM in training future farmhands and heirs of more than a hundred active ranches in Masbate as a good way of increasing production of cattle meat and livestock.

“Introducing more kids, even those who are from nonfarming families, early into ranch life would hopefully increase the number of cattle raisers that would, in turn, up the production of the province,” she said.

She noted the declining interest of youngsters in ranch life and farming. Over the past five years, more and more young Masbateños have chosen to enter the corporate world rather than become professional farmers and cattle raisers, she said.

Rodeo Academy

Local officials and Masbateños who are passionate about keeping their rodeo legacy alive hope to reverse the situation.

Judge Manuel Lopez Sese of the Masbate City Regional Trial Court, who is the president of RMI, said the group would be putting up Rodeo Masbateño Academy next year in a 10-hectare ranch in Mandaon town, 61.7 kilometers from the city.

The academy will have an “inverted triangle” curriculum and offer free enrollment to out-of-school youths, Sese said. Instead of having basic courses like English and Mathematics on the first year of education, the students will be given hands-on training on horseback riding, cattle branding and other skills.

Succeeding years of study will focus on basic academic courses and will require subjects such as animal husbandry and animal raising.

Graduates will be considered degree holders and eligible to answer the growing demand for professional farmhands abroad, Sese added.

Aside from promoting the cattle industry, the judge said Rodeo Masbateño was geared toward attracting more tourists to the island-province.

Family ties

Rodeo Masbateño is more than just a show of the local cowboys’ animal taming prowess but also an avenue for building stronger ties among families and clans through the promotion of rodeo culture in the province, Tuason said.

On Tuesday, Natz Ramizo, 43, who had worked in Dubai, treated his children—Adrianne Leigh, 13; Marie Beatriz, 11; Shane Marie Suzanne, 9; and Tristan Emmanuel, 5—to their first Rodeo Masbateño experience. He said he wanted his children to absorb the rodeo culture and become immersed in its activities themselves.

Although he comes from Barangay Tugbo, Masbate City, Ramizo said he was also attending his first Rodeo Festival even though the event was founded over two decades ago in 1993. His wife, Marie Lou, 42, is still working in Dubai, he said.

Susan Ubaldo, 43, always brings her daughter Alyzza, 9, to the Rodeo Masbateño every year, enduring a 32.9-km journey from their home in the town of Uson

Ubaldo said the festivities had always been among the highlights in her family life despite the distance of their home from Masbate City.

Now on its 21st year, Rodeo Masbateño started on March 30 with a Rodeo Saloon, Façade Dress-Up Contest, livestock show, trade fair, calesa rides and other events. It attracted 13 professional rodeo teams and 11 school-based rodeo athletic groups from as far as Benguet province and Mindanao.

The rodeo teams competed in the final national events of cattle wrestling (on foot and on horseback), carambola, bull whipping, “load carrying” and “casting down” on Tuesday. The next day, it featured a beef cooking contest for young chefs and the festival finale, “cattle drive,” which involved the herding of some 150 heads of cattle from the city center to the Rodeo Arena.

The cattle drive recreated the traditional way of transporting cattle from the ranches to the city port.

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Making waves all year round on Dahican beach

By Frinston Lim
Inquirer Mindanao

 26 207 132

The 7-kilometer white sand beach of Dahican in Mati City in Davao Oriental awaits surfers, skimboarders and tourists all year round. CONTRIBUTED PHOTO/Freddy Alan Uy

CITY, Davao Oriental—Children as young as 7 ride wooden boards and glide adroitly over foot-high swells that break against the long stretch of white sand beach. It’s a sight that has turned the coastal village of Dahican here into a prime surfing destination in southern Mindanao.

The crescent-shaped beach some 7 kilometers long has become a playground for intrepid sun-scorched sons of fisherfolk out to conquer the wind-whipped waves foaming at the blue Mayo Bay.

Located on the eastern coast of Davao Oriental province facing the Pacific Ocean, Dahican’s powerful waves and high winds make it ideal for surfers and skimboarders most of the year.

Dahican’s fine white sand draws thousands of local and foreign tourists year round, said Jose Moring of the Mati city environment and natural resources office.

“In Dahican, there’s no peak month. All year round is peak season,” added Moring, who heads the agency tasked to protect Dahican and its rich ecosystem.

Well-paved roads

Less than 10 km from the provincial capitol, Dahican’s well-paved roads are accessible to all types of vehicles.

The local government has initiated a campaign to turn Dahican into a top tourist destination and a center of economic activity, said Dashiel Indelible Jr., Mati city tourism officer.

“Little by little we want to turn Dahican into a top-notch destination without compromising its pristine beauty,” he added.

Already, Dahican’s well-paved roads have attracted investors and spurred economic activity in the seaside community, leading the Department of Tourism and the Department of Public Works and Highways to pour some P200 million worth of infrastructure projects into the place. Most of the projects are road networks totaling some 20 km that make Dahican accessible to the city proper.

6 resorts on beach

Six resorts dot the beach, spurring more interest among investors outside Mati.  The city government has joined the fray, entering into a 15-year lease on a 2.5-hectare beach-front property to build facilities for day tourists in an effort to initiate investments from the private sector.

Surfer dudes enjoy the waters of Dahican beach. CONTRIBUTED PHOTO/Freddy Alan Uy

Despite the slew of improvements, Dahican remains “a beach for everyone,” said Indelible.

“We don’t allow resort owners to fence off [portions of the beach]. We want people to [be able to] walk from end to end off the entire coastline,” he added.  “The building of structures and facilities is properly regulated.”

Ecotourism showcase

In fact, the place has become a showcase for ecotourism, “with its rich marine life and various species of sea turtles, sea cows, dolphins and that gentle giant of the deep seas—the massive butanding (whale shark) found or sighted off the village, said Moring.

Arranged boat tours could give tourists a chance to witness firsthand the thriving marine life of the bay.

Joseph Velasco, a 29-year-old tourist from Cavite, also cited Dahican’s underwater sights.  “My relatives in Davao City said the beach here was nice, and I wasn’t disappointed,” he said, as he prepared for another round of snorkeling on a sunny Wednesday afternoon.

Fisherfolk, who used to abuse the bay’s bounty, have become its protectors.  They have been enlisted as reef rangers and members of the 40-member Bantay Dagat (Sea Sentinels), which ensures the preservation of Dahican’s natural beauty.

Dahican has become one of Mati’s tourism jewels, drawing most of the more than 40,000 tourists who visited the city last year, about 1,700 of whom were foreigners, Indelible said.

While affordable accommodations can be found in most of the beaches in the village, Dahican is also ideal for backpackers and day tourists who can pitch their tents or spread picnic mats on the white sand.

Peace and order

Peace and order is not an issue, as Dahican is near a thriving community of Christians, Muslims (predominantly of the Kagan tribe) and indigenous folk, who have been living harmoniously for decades, local officials said.  It is far from where communist rebels are known to operate, they added.

Adding life and color to the once quiet stretch of beach known to be the hatching ground for various sea turtle species is  the growing popularity of skimboarding, with the children of local fisherfolk being its most active enthusiasts.

Known as the Amihan Boys, a group of 20 or so boys are making waves in local tourism for popularizing a sport that many would associate with the surf culture of the US Pacific coast.

Pedro Plaza, 28, said his elder brother, Jun, founded the group a decade ago after watching the sport in the movies.

Amihan Boys

Initially using plywood planks as skimboards, the Amihan Boys have attracted admirers and supporters among tourists who have seen them riding Dahican’s huge waves. The boys now use sturdy boards made from marine plywood.

A member of the group,  Sonny Boy “Bayogyog” Aporbo, a 20-year-old out-of-school youth, has won in skimboarding events in Malaysia, Hong Kong, Australia and even in California, said Plaza.  “He’s very talented. The younger members look up to him,” he added.

The Amihan Boys are also known for advocating the preservation of various marine life in Dahican, and have become partners with the Department of Environment and Natural Resources in protecting the village’s sea turtles.

In the last four years, the Amihan Boys have helped release to the sea about 15,000 sea turtle hatchlings, from such species like olive ridley, hawksbill and leatherback, said Plaza.

The boys also conduct skimboarding lessons and rent out skimboards to tourists for a minimal amount, a source of funds for themselves, Plaza said.

Regular visitor and Amihan Boys patron James Duncan, 62, described Dahican as “a beautiful place with friendly people.”

“The sea is clean and perfect for skimboarding. I’d love to recommend this place to my friends back in the States,” said the American retiree from Florida who is married to a Filipina.

Getting there

From Davao City, Mati City is three hours away by bus (with fare ranging between P130 and P250). At the Mati City bus terminal in Madang, one can hire a habal-habal (motorcycle for hire) for P40/person to Dahican, some 10 to 15 minutes away.

For your retirement and other real estate needs, please visit http://www.gregmelep.com.