CEBU-based property developer Priland Development Corp. is eyeing to develop its 42-hectare property in Consolacion into an industrial park.
The project is in line with the company’s plan to diversify its real estate portfolio, said Priland president Ramon Carlo Yap.
While the company has yet to determine the project cost of the planned light industrial park, he disclosed that the land development of the project may require an estimated P3 billion.
The Consolacion project will house factories, warehouses for leases and lots for sale, once the project pushes through.
This industrial project, according to Yap, is also one of the major projects the company will launch next year alongside the planned 50-hectare township project in Cagayan De Oro City.
Priland’s expansion also reflects a recommendation of research firm Colliers International Philippines for developers to venture into township and industrial projects.
Colliers believes Cebu remains one of the most feasible industrial spaces outside of Manila due to its strategic location and skilled workers.
Collier sees demand for warehouses and container yard spaces becoming more pronounced over the next 12 months.
Prospects up north
Mandaue City recently implemented an ordinance that disallows the presence of warehouses and container yards around Mandani Bay area. Several firms involved in shipping, logistics, and container yards are now in a rush to relocate, the study said.
Colliers also sees industrial land values in the northern parts of Manduae, Consolacion, and Liloan growing by at least 10 percent annually over the next two to three years with the transfer of Cebu International Port to Consolacion, Cebu in the next four to five years.
Currently, the range in Mandaue is P25,000 sq.m. or $500 per sq.m. while prices in Consolacion and Liloan range from 10,000 sq.m or $200 per sq.m. to P30,000 sq.m. or $600 per sq. m.
“The increase in rates will be supported by rising demand from logistics and warehousing firms due mainly to expansion of e-commerce platforms Lazada and Zalora in Cebu,” said Colliers.
Priland has ongoing vertical and horizontal projects in Cebu.
Its latest project is the P1.5-billion Vertex Central, which will have small office-home office (Soho) and residential units.
After Vertex, the company is set to develop five more projects this year.
Two of these projects will be launched by September, and one each for the months of October, November and December. Yap said they are earmarking an estimated investment of P4 billion to P5 billion to build these projects. This includes the planned six-tower condo project near the Mactan Economic Zone 2. (KOC)