A PROVIDER of serviced apartments is venturing into another property project--a P400-million condominium at the North Reclamation Area in Mandaue City.
Ironwood Property Ventures Corp. (IWPVC), which operates the Copenhagen Residences on AC Cortes. St. in Mandaue City, broke ground on the Northstar Condominium, a 16-storey building nestled in a 1,200-square-meter property along Larrazabal Ave.
Rupert Von Seidlein, a German but Singapore-based investor of IWPVC, said the new venture will supply a strong demand for residential projects in the North Reclamation Area.
With massive developments currently being undertaken in nearby locations like the construction of Chong Hua Hospital and the Bai Hotel and Casino, he said the current demand will further peak.
“This location is very strategic. We are confident that medical professionals, managers and businessmen will benefit from this project,” Von Seidlein told reporters at the sidelines of the groundbreaking ceremony. He added that since nearby condominiums have already been sold out, this gives more room for Northstar to serve the market.
While it has diversified to condominium development, Von Seidlein said the company is considering the expansion of Copenhagen Residences, although there are no definite plans mapped out yet.
“Given the feedback and a more than satisfactory occupancy rate in Copenhagen, we are not closing doors for expansion,” he said. Copenhagen Residences started operating in 2013.
Cebu, according to Von Seidlein, has a limited supply of “high-quality” but reasonably-priced rental spaces.
Copenhagen Residences, which include Copenhagen Main and Copenhagen East, have 98 fully-furnished units in total that are available for both short and long-term rentals. Rates start at P1,000 a day for a 25-square meter studio apartment. Prices are higher for bigger rooms that have three to four bedrooms.
Von Seidlein said Copenhagen Residences are predominantly receiving Korean tourists, business travelers, and local families.
“Actually, we don’t spend a lot on a marketing campaign (for Copenhagen). We rely on word of mouth and the Internet,” shared the German investor, stressing the “affordablility” yet “good quality” of the serviced apartment.
He said Copenhagen has already received some bookings until January 2016, in time for the Sinulog festival. For this year’s Sinulog, it recorded a 100 percent occupancy rate.
Meanwhile, in August this year, Northstar Condominium will be available for selling, as the company is still waiting for the license to sell from the Housing and Land Use Regulatory Board.
There will be 186 units in the Northstar Condominium, roughly seven percent of these studio units. The project is scheduled for completion by the first quarter of 2017, Von Seidlein said.
IWPVC is also considering to venture into resort development, having acquired a five-hectare seaside property in the town of Tabogon, north of Cebu.
Future plans the company is considering include developing a mid-market residential project outside Metro Cebu to serve the middle class, where the demand for housing projects is mostly felt, Von Seidlein disclosed.
IWPVC, a joint venture formed between two foreign and local families, is the first business venture of Von Seidlein in the Philippines. His also has stakes in financial investments and property development in Germany and Singapore.