Tag Archives: Property developers

Treasury launches ‘Premyo’ bonds

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THE BUREAU of the Treasury on Monday launched its one-year peso-denominated “Premyo bonds para sa bayan” (Premyo bonds) as part of its bid to lure more small investors to government securities.

Here, four players can each win up to P1 million in cash or non-cash prizes such as real estate for as low as P500 in investment.

During the bond’s launch yesterday at the Development Bank of the Philippines (DBP), National Treasurer Rosalia V. De Leon announced that three property developers — DoubleDragon Properties Corp., Vista Land and Landscapes, Inc. as well as Megaworld Corp. — have partnered with the government to offer grand prizes during quarterly draws.

Ms. De Leon said the Premyo bonds are designed to encourage Filipinos to save while contributing to nation building, by reducing the minimum investment “to just P500” from the usual floor of P5,000. The Treasury also made it more convenient to invest by providing the option of applying online. Investors can also acquire the bonds through authorized selling agents.

“Premyo Bond, in small ways hopefully, could demonstrate that, if done right, digitalization of finance offers a gateway to achieve significant inroads towards financial inclusion and payments efficiency,” she said in a speech.

In a disclosure yesterday, Doubledragon said one winner will win a P6-million unit at Hotel 101 Fort in Bonifacio Global City in Taguig City in one of the four draws.

“The Premyo Bonds are a great way to incentivize first-time retail bond investors to try out investment instruments like this as a way for them to optimize and diversify their savings. It is also a great way to support our country and help spur inclusive growth,” DoubleDragon Chairman Edgar J. “Injap” Sia II said in the disclosure.

Under its cash reward tier, a total of P3 million will be raffled off during the quarterly draws where one winner will win P1 million, 10 winners to win P100,000 while 50 winners can win P20,000.

“On every cash rewards draw date, each Premyo Bonds unit shall be assigned a 20-character electronic Rewards Number (“e-RN”) using the Cash Rewards application system,” the Treasury said in a notice.

It added that “a bondholder in possession of multiple Premyo Bonds units may win multiple times.”

In a Nov. 22 notice, the Treasury said that the bonds will be in “scripless form” and will have a minimum required investment of P500 and integral multiples of P500 thereafter. The issue has an initial size of P3 billion but the Treasury has the option to upsize.

“The Bureau of the Treasury has the option to upsize, but our target right now is P3 billion and we can still continue the offering and get a higher volume,” Ms. De Leon said during Monday’s launch.

The debt papers carry an interest rate of three percent per annum to be paid quarterly and subject to a 20% final tax.

While there will be no maximum investment, a bondholder can have a maximum of 20,000 Premyo bond units worth P10 million per selling agent to qualify for the rewards scheme.

Eligible investors for the bond issuance includes individuals who have a local bank account, cooperatives, qualified associations such as nonstock and loans associations as well as trust entities, among others.

The bond offer period runs from Nov. 25 to Dec. 13.

“When subscription has reached a level deemed sufficient by the BTr, the BTr shall announce the termination and closure of the offer period through the BTr Web site or in any electronic financial information providers chosen by the BTr,” it said.

Selling agents for the transactions are BDO Unibank, Inc.; BDO Capital and Investment Corp.; Chinabank Corp.; China Bank Capital Corp.; Development Bank of the Philippines; First Metro Investment Corp.; Land Bank of the Philippines and Metropolitan Bank & Trust Co. — Beatrice M. Laforga

Property boom transforming Philippine skylines

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Written by AFP
The Daily Tribune
July 23, 2012

As a Philippine property boom gathers pace, even Paris Hilton, Donald Trump and high-fashion house Versace are getting a piece of the action.
The good times are into their fourth year, fuelled by steady economic growth, Western firms offshoring jobs to the Philippines, the buying power of millions of Filipinos working abroad and low interest rates.
“It just so happens that today the stars are aligned… we have never seen the economy this bullish,” said Antonino Aquino, president of Ayala Land, one of the country’s biggest property developers.
Ayala Land is one of the main players in what industry figures describe as an unprecedented construction boom that is transforming the skyline of the nation’s capital, as well as many provincial cities.
In Manila, formerly sleepy pockets such as the Fort army base and the rundown Eastwood industrial zone have become chic, new business districts, catering mainly for the fast-growing outsourcing sector.
At the Fort, Ayala Land this year broke ground on its $714-million One Bonifacio High Street project, which when completed in 2017 will host the Philippine Stock Exchange, a Shangri-La hotel, and retail outlets.
The project also has a 63-story residential tower, with 298 suites ranging from $500,000 to $1.9 million that sold out last month in 96 hours, according to the company.
Across the country, more than 850,000 square meters of office space and 14,000 residential units will enter the market this year, property consultants CBRE Philippines said in a report.
It said many of the residential units catered for a growing middle-class on the fringes of Manila and other urban centers.
The building boom has also spread to hotels, shopping malls and casinos, triggering hopes of a long-anticipated take-off of the underdeveloped tourism industry.
Three of the world’s biggest gaming industry leaders are building a $4-billion, 100-hectare Entertainment City complex of casinos on Manila Bay. The first of the casinos are set to open early next year.
Meanwhile, Trump, the New York mogul, has put his name to a $150-million, 56-story, curtain-glass-walled Trump Tower that broke ground in the financial district this year.
“High-end buyers look for key differentiated features,” said Robbie Antonio, managing director of Century Properties that is behind the Trump Tower development.
He said 70 percent of the 220 residential units, which are worth up to $1.86 million each, have been sold.
The firm is putting up a nearby tower designed by the Versace fashion house — the first of its kind in Asia — featuring individual wading pools as well as its iconic Medusa-head brand imprinted on lamp shades and cutlery.
Century also flew in socialite and hotel heiress Hilton to Manila last year to help design and promote a suburban Manila residential project that features a man-made beach.
Industry players say the property boom reflects the overall status of the nation’s economy as it picks up steam after decades of underperforming compared with many of its Asian neighbors.
The economy grew 6.4 percent in the first quarter, the stock market has surged 20 percent this year to hit all-time highs, and the country’s credit rating has been bumped up to just a step below investment grade.
The central bank’s benchmark interest rates are also at historic lows — 4.0 percent for the benchmark borrowing rate — ensuring large piles of cheap cash for property development.
Aside from the macro economic picture, real estate analysts point to the outsourcing phenomenon as one of the key drivers of the property boom.
From virtually nothing a decade ago, outsourcing now employs more than 600,000 people and is worth $11 billion annually, according to the main industry association which is forecasting 15 percent growth in the years ahead.
Many of the skyscrapers are being built to cater for the outsourcing workforce, which performs a myriad of tasks from call center duties to designing architectural plans for foreign firms.
Meanwhile, roughly nine million Filipinos who work overseas are sending large chunks of the $22 billion they earn — equal to 10 percent of the nation’s gross domestic product — back home, often investing in real estate.
The frenetic building pace has some quarters anxious over a potential property bubble, with the global economic woes adding to concerns.
But Rick Santos, CBRE Philippines chief executive, remains bullish, in large part because of the expected continued growth in the outsourcing sector.

Mindanao’s new lands of promise

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Bernard L. Supetran
Philippine Daily Inquirer
June 24, 2012

For decades, Mindanao, the country’s biggest island group, has been given this moniker because of its vast fertile land, scintillating sights and diverse natural wonders.

This calling still holds true today with its continuing march to economic progress, especially with the proclamation of five new component cities.

These new urban centers—Bayugan (Agusan del Sur), Cabadbaran (Agusan del Norte), Tandag (Surigao del Sur), Mati (Davao Oriental) and Lamitan (Basilan) are expected to further spur development and continue fulfilling the promise that is Mindanao.

After a rough sailing that saw their cityhood nullified and restored twice since 2007, these are full-pledged cities after their status have been finally affirmed by the Supreme Court.

Bayugan

The crossroad city of Bayugan is the commercial center of northern Agusan del Sur, and the confluence of five neighboring towns. Its strategic location between Butuan and Davao cities further adds economic value to its status as a vital go-between.

It boasts of 5,000 hectares of rice fields, the biggest in the Caraga Region, 700 hectares of palm oil plantation 1,000 has rubber plantation, and 1,000 hectares of corn and falcata tree farms making it an agricultural powerhouse.

Due to its role as trading center, regional retail giants such as Gaisano and NCCC, commercial banks, and property developers are poised to enter the city.

With an P482.9 million internal revenue allocation (IRA) this year, Bayugan will further strengthen its agro-industrial sector, and develop of the culture of entrepreneurship, one of Bayugeños strongest traits.

Tourism-wise, the city has identified potential attractions, most of them waterfalls located in the city’s mountainous areas which are largely untapped by human hands and are authentic adventure destinations.

The city recently launched the Bayug Festival to embody its history and aspirations, which the local government hopes to be a major tourist drawer in the near future.

Tandag

The capital of Surigao del Sur, Tandag boasts of a checkered history being once the seat of government of the unified Spanish-era Surigao province.

“In our Annual Investment Plan for 2012, we aim to make the city a cottage industry capital and a leading eco-tourism destination in the Caraga region.” says Tandag Mayor Alexander Pimentel.

With a P279-million IRA this year, the city has prioritized funding for barangay development by earmarking P1 million annually for projects, and general social services such as Philhealth coverage and birthing for the poor, potable water, and financial assistance to indigents and elderly.

While still primarily agricultural, the city is Surigao del Sur’s commercial hub and service area for the province’s emerging tourism industry.  Thrice weekly flights from Cebu via Mid-Sea Express have made the city more accessible and have brought back life to the once dormant airport.

Pimentel says that as a result of its cityhood, Tandag is investing in education as it increased the number of college scholars from 70 to 500 students who receive P3,000 financial assistance per semester. It has also hiked from 100 to 500 the number of students enlisted for summer jobs.

To harness its human resources, barangay health workers and tanod (watchmen) receive additional honorarium from the city government. The city also conducts training in coordination with Tesda skills for all sorts of which has provided overseas employment.

To lure potential investors, the City has crafted an Investment Code which accords investors pouring in P5 million and above a five-year tax holiday.

On the tourism front, Twin Linungao Island, the city’s iconic rock formation, will be developed into an ecopark, complemented by the construction of the Baywalk Boulevard.

Also in the pipeline is the relocation of some 1,200 informal settler families in a 16-hectare self-contained community.

Cabadbaran City

A vital highway town in northern Mindanao, Cabadbaran’s dream of becoming a city got a boost when it was declared the provincial capital of Agusan del Norte in 2000 after Butuan achieved a highly urbanized city status.

Mayor Dale Corvera says that the mixture of agro-industry, gold and copper mining, educational and commercial activities, and major investments bode well for this flourishing urban center.

Discovering the potential of abaca farming, Cabadbaran has put in P5 million for abaca production, and has made it its One Town, One Product (OTOP) showpiece. Despite not being endemic to the area, the city has effectively multiplied its abaca twining from 20 to 356 hectares.

He reveals that Filinvest Development Corp. is putting up a 20-megawatt hybrid power plant which utilizes diesel and rice hull, which will dramatically bring down the energy cost to P6/kwh.

This new investment, he says, will bring in realty taxes, direct and indirect employment, as well as micro-businesses to the locals.

Corvera says that cityhood has enabled Cabadbaran to extend P 2,000 cash incentives and daily vitamins to senior citizens, funeral services, and Philhealth coverage for 6,000 indigent households.

Believing in the value of education, the city supports 70 public elementary and high school teachers, and operates a local high school, which has produced 100 graduates so far.

He adds that the city is strengthening its capability to raise revenues through efficient management of its local economic enterprises such as the public market, transport terminal and a triple A slaughterhouse as rated by the National Meat Inspection Service.

As a testament to good governance, Cabadbaran has received the DILG Seal of Good Housekeeping in 2011, and the Bureau of Local Government Finance Achiever’s Award in recognition of its accomplishment in revenue generation resulting in collection efficiency from 2008 to 2011 among the LGUs in the region.

It is also among the LGU recipients compliant to the criteria of good governance of the National Anti-Poverty Commission.

It is also home to the country’s most successful artificial fish sanctuary which restored 76 species of marine life, according to Mindanao State University.

Bullish sentiments Downsouth —

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By Hernani De Leon
BusinessWorld Online
November 16, 2010

DAVAO CITY — Feedback from regions in Mindanao indicates a bullish sentiment in past months. New shops and offices are opening and property developers are aggressive in marketing campaigns. These are positive signs after a slight economic slowdown that started in 2008 and a power crisis that crippled the island’s industrial areas in the first semester.

Expansion moves, however, are anticipatory and not hinged on higher demand. Power consumption, a solid indicator of growth, is short of projection. A couple of years ago, it was estimated that power demand this year will outstrip supply, currently at 1,300 megawatts (MW).

Latest power demand figures from the National Grid Corporation of the Philippines show roughly 1,200 MW at peak level. Lower-than-expected demand could be traced to the mining industry’s delayed takeoff. Capacity utilization of steel plants in Iligan City, estimated to require at least 100 MW, apparently did not meet expectations.

There are no surges in prices of construction materials, another proof that housing demand is not as high yet, even as some sectors complain of lower revenues given the strengthening of the peso’s value against the US dollar. While wage adjustments took effect three months ago, proceeds from overseas worker remittance went significantly lower, taking its toll on consumption during the Yuletide season.

Mindanao’s exporters, meanwhile, are in a crisis. The banana industry, which posts as high as $700 million in export receipts annually, is anticipating losses to reach over a billion pesos. A volatile exchange rate will have a significant effect on annual supply contracts. Take note that an annualized P1 loss in foreign exchange rate will automatically mean P700 million in losses from the industry this year.

That could mean less food on the table of plantation worker families this Christmas. At four dependents per worker, the crisis can affect half-a-million individuals in Davao Region as well as thousands in nearby south-central Mindanao which host some plantations.

…

Local government units, not only the regional offices of the Department of Trade and Industry, should also be concerned with substandard products sold on sidewalks and in retail establishments. Often, only Trade and Industry personnel are looking into this issue and there were cases when erring entrepreneurs would even drop names of their city hall protectors.

Cheap substandard products could bring disaster during the holidays. Consumers who lack the technical background sometimes decide based on deceptive product packaging. For electrical appliances or gadgets, one should be wary of the wire’s thickness since a thin wire gauge could cause fire when the line is overloaded, or when the appliance is left operating overnight.

Checking if the wire is safe enough for hours of use is easy. Simply feel it after a few hours while the appliance or gadget is operating.

If it is hot, better unplug the appliance immediately, or take it to a technician to have the wire replaced. That would cost less than a hundred pesos, a small amount to keep your home safe.
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Believing there is no other way but up, private sector leaders are driving the economy in the last few months. The same entrepreneurs, however, are at a loss justifying high expectations. Many admit the administration’s Mindanao agenda is so far vague, with rhetoric on achieving peace and security and speeding up economic development as priorities in the island.

One challenge is to harness local government institutions in achieving economic objectives, which has yet to get attention from national leaders. The Mindanao Development Authority (MinDA) was created by the previous administration early this year but it has yet to harmonize local government policies with national objectives and integrate regional efforts into a strategy that could bring in results.

As previously pointed out in this column, MinDA could be another redundant unit — an excess baggage, if you may — in the bureaucracy that the administration wants streamlined. A recent report that the authority’s chairman will coordinate with regional development councils to integrate plans only means the agency is redundant.

Integrating development plans is a function of the National Economic and Development Authority (NEDA). Another agency doing the same work implies inefficiency unless that agency takes the role of a bigger regional unit of NEDA. Its chief goal is to have a NEDA undersecretary for Mindanao.

That should have been the setup for its predecessor, the Mindanao Economic Development Council, but politicians in Congress passed a law creating MinDA instead. Despite limitations, MinDA should perform well as the country’s counterpart BIMP-EAGA (Brunei, Indonesia, Malaysia, the Philippines-East ASEAN Growth Area.

It should also be an effective overseer of small projects related to the peace process. Ideally, NEDA should confine itself into development planning and should turn over small projects to MinDA.

o.