Filinvest eyes second Davao condo project

MANILA, Philippines - Gotianun-led Filinvest Land, Inc. is investing up to P2 billion in a second condominium project in Davao City, as it expects no letup in demand. The company is also looking at replicating its One Oasis project within Metro Manila in a bid to boost its entry in the mid-rise building market and expand its geographical reach. The property firm expects a good response from the market despite the weaker purchasing power of families who receive dollar remittances from relatives working abroad, Davao City branch manager Allan J. Barquilla said. The project, a three-hectare condominium complex, will be the company’s second in the city after the 2.3-hectare One Oasis near SM City Davao. Filinvest Land Manager Geraldine C. de Gorostiza said details of the new project would be announced soon. Construction is expected to start towards the end of the year. Filinvest’s One Oasis project, first to rise on a four-hectare lot along Ortigas Avenue Extension in Pasig City, is composed of 11 five-storey residential buildings and two business process out-sourcing buildings. The company started construction of One Oasis Ortigas last year, but it did not disclose the development cost. Meanwhile, One Oasis Davao is made up of seven medium-rise buildings, to be developed over three to four years. Construction of the first two buildings will start next month. In a briefing in Davao, Ms. de Gorostiza said the second condominium would likely attract buyers, judging by previous sales. She said the company’s first condominium project here was sold out in six months after its introduction. As a result, Filinvest Land is intensifying its property ventures in the city where it has five ongoing projects. Aside from the second condominium project, the company is looking at other properties within and outside the city for development. Ms. de Gorostiza said they might enter General Santos City where they have bought a 120-hectare property. She said most of the buyers of upscale properties in the city are from other areas, particularly Central Mindanao and the Autonomous Region of Muslim Mindanao. Mr. Barquilla said almost three-fourths of the inquiries the company had received about its first condominium project were from people living outside Davao City. Ms. de Gorostiza said people want to live in the center where they work. Outsiders who want to buy properties either have business deals or children who study in Davao. "It would be better to develop a project that will cater to these people," she said. In Manila, FLI Chief Finance Officer Nelson M. Bona said the company would be offering the One Oasis project in two new areas in the Metro, but declined to be specific. Mr. Bona noted that with the completion of the first two residential projects in One Oasis Ortigas, they were likely to raise P500 million in revenues. "But we’re not departing from our business model which is basically [catering to the] middle-income [class]. We’re still focused on the affordable and middle-income market because that’s the more sustainable market," he added. One Oasis Ortigas units are soled as studio, one-bedroom and two-bedroom types that cost P1.3-P2.5 million. Filinvest Land said the centerpiece of the project will include a clubhouse, pool, basketball court, children’s playground and meditation garden. Filinvest Land, one of the real estate arms of holding firm Filinvest Development Corp., has allocated P6 billion for the development of 36 new projects and expansion of existing ones this year. In a separate interview, Filinvest Land Investor Relations Officer Annabelle Arceo said projects to be expanded include The Aborage at Brentville, Highlands Point in Filinvest East County, Alta Vida and Sunrise Place. - BusinessWorld