DAVAO CITY — Long-time landowners in this city, not wanting to let go of their properties but recognizing the potential gains amid the real estate boom, are opening their doors to joint ventures (JV) with developers, according to consultancy firm Property Interactive Marketing Enterprise (PRIME Philippines).
Raphil D. Saguan, PRIME Philippines capital markets and investment associate, said the property consultant has been tapped by several local property owners whom he tags as “game changers,” to market their lots for JV agreements or a long-term lease contract.
“Instead of selling it (land), they usually go for a joint venture, usually go into long-term lease, and some even just want their lands to be idle,” Mr. Saguan told the media last week.
The PRIME Philippines executive did not disclose clients’ names, but he said among the properties up for a JV or long-term lease are a four-hectare (ha) lot in the Ecoland area, 10-ha in Mintal, and 1.4-ha along the Diversion Road.
“If you look at it, generally these locations of the properties for JV and long-term (lease) are scattered all over the city. That is why we can say that there is an [emerging] trend among landowners wherein they know that there are developments coming up and they know that Davao is at its height in terms of development,” Mr. Saguan said.
JV is not a new concept in town with the country’s major developers and big landowners having trailblazed such arrangements.
The Floirendo-owned Anflo Management and Investment Corp. partnered with Ayala Land, Inc. (ALI), setting up Accendo Commercial Corp. which operates the mixed-use Abreeza compound with an Ayala shopping mall, Seda Hotel, corporate offices, and condominiums.
Cebu Landmasters, Inc. inked a deal in May with the city’s Huang and Yuson families for the conversion and development of the 18-hectare Matina Golf Course into a township.
Mr. Saguan said the rise of townships in the city — which effectively creates new sub-centers with commercial, residential, office, recreational and medical components — is another influential factor in the property sector’s direction.
“We have lots of high-value townships (being developed) that is composed of different industries, location, offices. Each township, we can say, they will add a great deal of value to the (surrounding) area,” he said.
Megaworld Corp. is setting up the Davao Park District in the Lanang district, while ALI, in partnership with the Alcantara Group, is building the Azuela Cove, also in the northern area.
Cebu Landmasters’ Matina township would be the first in the southern part.
“When it comes to the development of townships, we’re expecting more south people who will start working in the south area instead of commuting to the north,” said Jen Namis, PRIME Philippines assistant manager for business development.
Mr. Saguan said they are also seeing a trend among business process outsourcing (BPOs) firms and service providers of setting up offices from the city’s northern and southern regions.
“Local BPOs and professional services, they’re looking for expansion. Those from south are looking for space (in the) north, or from north looking for space in the southern part. That itself contributes great demand for spaces, especially office spaces,” he said.
He added that major public infrastructure projects lined up by the government — such as the P34.5-billion Davao City Coastal Road project, P36-billion Davao segment of the Mindanao Railway System, and P46-billion Davao City bypass road — are also shaping the real estate landscape.
“Whenever these developments come, it will add value to the area.” — Maya M. Padillo