CEBU CITY -- Property firm Federal Land Inc. (FLI), which currently has hotel and condominium developments here, has recognized the potential of neighboring Visayas cities particularly Bacolod and Iloilo for expansion.
FLI senior vice president and head of sales and marketing John Cabato, during the media roundtable discussion at the Marco Polo Plaza in this Central Visayas city Wednesday, said the company is always on the lookout for good properties in the country.
Cabato said they are looking at the areas like Cebu, Bacolod and Iloilo as a region rather than cities by themselves.
“We see great opportunities. I think that we should look at our country as one,” he said, adding that looking at properties for development both in cities of Bacolod and Iloilo is on the pipeline.
In his presentation, the FLI official underscored the robust economy of the Visayas as more investments have been pouring into the region.
Citing the Cities and Municipalities Competitiveness Index 2018 by the Department of Trade and Industry (DTI), he reported that cities of Bacolod, Cebu and Iloilo are in the top 15 most competitive highly urbanized cities in the country based on economic dynamism, government efficiency, infrastructure and resiliency.
With this positive environment, FLI saw that businesses like business process outsourcing (BPO) have moved out from Metro Manila to establish offices in Cebu and Bacolod, also with many investors eyeing Iloilo for expansion with its recent infrastructure developments.
Visayas is also considered as a strong region in terms of real estate investments.
According to research group Numbeo, the rental yield, or the annual rent to house price ratio, for properties in Cebu City is at 4.63 percent.
This is at par with Metro Manila’s 4.98 percent.
Citing the report, the property firm said key Visayas cities pose much promise as well, with Iloilo posting a rental yield of 4.58 percent outside the city center, Dumaguete at 3.67 percent and Bacolod clocking in rental yield of 9.36 percent at the city center.
Claiming further that Visayas is a prime location for investment, FLI said that according to British Chamber of Commerce Philippines, the economic growth in the region will rise between 7.7 and 8.3 percent over the next five years.
For Outsourcing Accelerator, Cebu City ranks number two as top outsourcing destination in the country while Bacolod and Iloilo are numbers five and six, respectively.
“Everytime when we talk about the region (Visayas), when talk about Bacolod, Iloilo and Cebu, we look at it as one big market as we should,” Cabato stressed.
Kind of development
When asked about the kind of development they would like to bring in Bacolod City, for instance, for future expansion, Cabato said “it really depends on the location of the property, it is actually determined by the space.”
“If where the property is located, then we think of the market,” he added.
Michael Salazar, product planning department head of FLI, said another factor to consider is the nature of the property to purchase --- its existing environs.
Salazar said if the property is indeed for commercial, then the company is open to doing commercial development in the area.
If the area in the city is for a horizontal type or subdivision, then by all means FLI can also do that, he said, adding that “we have a share of horizontal and vertical developments as well as commercial and office spaces.”
Aside from space and nature of the property, the company is also considering the “lifestyle” of the people in Bacolod City and Negros Occidental.
“Our developments are tailored-fit so we study the area, culture and people. From there, we are able to identify the suitable product,” Salazar also said.
In terms of target, the FLI officials said there’s no specific year “because sometimes it’s a matter of, again, the development of the community.
Cabato said factors to consider are the availability of the property and maturity of the market.
“So we constantly go around and talk with various communities, the local government unit, on what’s the direction of the city in terms of development because that gives us the cue when are we able to come in,” Cabato said.
He added that “the Visayas cities are always on our mind because the region is a growth area.”
Strengthening presence
Amid the bullish economy in the Visayas, FLI is further solidifying its presence in the region with the latest addition to its development, the Marco Polo Parkplace.
Being the fifth tower to the company’s luxury condominium called Marco Polo Residences, the Parkplace is a 30-storey building perched atop Cebu’s exclusive Nivel Hills.
“It is FLI’s newest offer to the Visayas region, capturing a panoramic view of the city’s bluest coasts and hillsides next to its thriving metropolis,” the firm said.
From its aesthetic design to its modern facilities, the newest tower marries Cebu’s chic modernity and rustic charm with the Marco Polo brand’s trademark of world-class excellence, it added.
Parkplace’s unique design resembling two connecting pearls emphasizes curves that create visually fluid spaces.
The coordinated palettes, patterns and texture of its interiors exude elegance while its extensive set of amenities for play and leisure.
The three-hectare property houses 350 units that offer a selection of studio, one bedroom and two-bedroom units with living spaces ranging from 30 to 79 square meters at a price of P175,000 per square meter.
FLI said that while mindful of individual comfort, Parkplace extends possibilities for pleasure and relaxation with a range of recreation options including different areas for fitness, games and entertainment.
Residents can also choose from various facilities like art room, KTV room, mini theater, sky lounge and golf simulator, among others.
The company is currently bidding out the development of the Marco Polo Parkplace and in months’ time it will be awarded to a general contractor.
The turnover of units is targeted in December 2023 while an open house pre-selling starts in September this year.
Cabato said they are looking at people from Western Visayas, especially Bacolod and Iloilo, as potential investors and clients of this development.
“What we would like to create is intra-region investment because that only means that all regions in the Visayas will grow,” he added.
Power house
With the success of Marco Polo Residences, and Parkplace coming to fruition, FLI has identified the massive potential of Visayas a powerhouse region.
While, individually, Visayan cities have become more aggressive in their efforts to become strong economic players, the firm said it sees the interconnection of Cebu, Bacolod and Iloilo as a major commerce and tourism hub in the Visayas.
With all three cities home to international airports, they have direct access to an influx of foreign expatriates and tourists from different parts of Asia and the rest of the world, it said.
“As the government pushes for investment, commercial and infrastructure expansion into other urban centers outside Metro Manila, FLI believes that it is only a matter of time for businesses in many industries to diversify their portfolio into these cities most especially for real estate,” it added.