MANILA, Philippines – Luxury property developer Anchor Land Holdings Inc is gradually expanding outside of its niche Chinese-Filipino clients in Binondo, Manila, and targeting foreign clients with the help of its Parksuites residential line.
The client mix shifted from at least 80% Filipino-Chinese to just 60%, after droves of foreigners and non-Chinese locals began moving into the Solemare Parksuites in the last quarter of 2011, explained company vice chairman Steve Li.
“Before it’s like 80-90% (Filipino-Chinese clients). Now it dropped. That was before the SoleMare Parksuites,” he said.
The majority of Anchor Land’s past projects have been in the Binondo Chinatown. Conversely, SoleMare Parksuites is strategically located between SM Mall of Asia and the fast-rising Pagcor Entertainment City, which Li says is hitting a new market of clients.
“Our other projects, which are say in Binondo, the focus is really on the Filipino-Chinese. However our market is very wide [with Parksuites]. Our buyers and investors are ranging from [all sides of] the multinational community,” he said.
“During the turnover we’re seeing there are lots of foreigners, Japanese, Americans, Canadians, Australians. So its not appealing to just Chinese, local Filipino-Chinese anymore,” he added.
Investing P11-B in Monarch Parksuites
The foreign base is likely to widen as Anchor Land develops its Monarch Parksuites project, beside SoleMare Parksuites.
Monarch Parksuites will be the company’s biggest project to date. Li said they expect to invest P11 billion over the next 5 to 6 years to develop the 1.9-hectare lot in the ASEANA Business Park in Paranaque City.
The project will be developed in two phases with two residential towers in each. Anchor Land expects the first two towers with nearly 750 units to be launched by the 3rd quarter of 2012. Li said net profit from the project is estimated to reach about P3 billion since average net profit is expected to be 20% or more of the P11 billion they are investing.
Li said Monarch Parksuites will have 1,500 units, ranging from one bedroom units of 25 square meters to 130-sqm, 3-bedroom units. The spaces are expected to feel more open, with bigger amenities and garden areas.
The company has 5 other projects in the pipeline:
- Clairemont Hills, which is envisioned as an ultra exclusive enclave in San Juan City and expected to be complete in 2014.
- Oxford Parksuites, a 39-storey residential condominium located along Masangkay St., near 6 of the most prominent Chinese learning institutions, and expected for completion in 2015.
- Anchor Land Corporate Building, a premium office building located along Roxas Boulevard, which the company says is vastly underserved since no new offices have been built in a decade.
- One Executive Suites, a 16-storey residential condominium in the busy Baclaran bargain shopping district which is expected to be completed in 2014.
- One Soler, a office and commercial facility near the popular discount destination 168 to meet demand for commercial stalls and office spaces which Anchor says are in high demand but not currently available.
Talks for a master plan of Binondo stalled
Expanding outside of Binondo has proved to be a wise move since the company hasn’t been able to get a hold of the district’s development plan, which it is seeking from the Manila City government.
Narrow roads, the mixed infrastructure and zoning amid increasing property prices all make city planning in Binondo difficult. But not formulating a plan will make developer’s jobs even more challenging.
“We need the cooperation of the city government. We have approached the city government. We also try to help them out, keep the idea open as to the overall redevelopment of the entire Binondo area,” said Li.
He explained that talks haven’t progressed since officials are focusing on the fast-approaching 2013 local elections.
Despite the hiccup, Anchor Land won’t be abandoning its Chinese-Filipino base. “We still see very strong demand in Binondo area,” said Li.
If anything, the company is making sure all its eggs aren’t in one basket as it grows towards its full-year net profit goal of P1 billion. Given the 23% growth in its first-quarter net income to P262 million, Li believes the company has enough momentum to meet its goal. – Rappler.com