Cebu-oriented AboitizLand, the property development unit of the Aboitiz Group, is shifting its focus to the provincial Luzon market with the launch of four new projects this year, the company said last week.
In a media briefing, AboitizLand Vice President for Marketing John Amon announced that the firm is set to launch four projects totaling approximately 83 hectares in area in Batangas, Tarlac, and Nueva Ecija.
Of the four projects in the pipeline, three will cater to the residential market, while one will be a commercial development. Among the three residential projects are the Sands Seaside Residences to be located in a 44-hectare lot in San Juan, Batangas; Ajoya Capas, which will sit on a 13-hectare lot in Capas, Tarlac; and Ajoya Cabanatuan, to be situated on a 17-hectare lot in Cabanatuan, Nueva Ecija.
For its commercial development, AboitizLand is set to launch The Outlets at Lipa, a retail center designed to offer an “authentic outlet shopping experience,” the company said.
“After more than two decades of building thriving communities in Cebu, we are more than ready to take on other parts of the Philippines, beginning with our foray into Luzon. We’re very keen on becoming stronger players in the national scene while of course, maintaining our foothold in Cebu,” AboitizLand Vice President for Business Innovation Rafael Fernandez de Mesa said.
“We saw huge potential in terms of land development in Luzon. Armed with the experience and knowledge that we have acquired over the years, we are confident that we could offer a better real estate experience to more potential ‘vecinos’ (neighbors) in this part of the country,” Fernandez de Mesa added.
Sands Seaside Residences in San Juan, Laiya, Batangas will cater to the high-end residential market.
“Positioned as a second home by the beach, AboitizLand has tapped world renowned partners in the development of this exclusive and intimate community namely, internationally acclaimed master planners, Duany, Plater-Zyberk & Co. (DPZ), which is best known for designing the Rosemary, Seaside and Alys Beach townships in Florida; SC&A Architects and Planners, to adapt DPZ’s plans for the Philippine setting; Budji+Royal for architecture and interior design; Crearis for landscape architecture; and GHD for engineering,” AboitizLand said.
Sands will offer approximately 800 house and lot units, the company said.
Amon noted that average lot sizes in the Sands project would range from 200 to 300 square meters while floor area will range from 100 to 150 square meters.
Fernandez de Mesa noted that price range for units in the Sands project would range from P7 to 10 million.
Total sales of the Sands project are at P6 billion, the company said.
Meanwhile, the firm’s mid-market Ajoya brand, which is set to launch projects in Capas and Cabanatuan, is expected to deliver around 1000 units each, according to AboitizLand AVP-Marketing Joey Zamora.
Zamora noted that both projects would have around the same number of units despite the Cabanutan development occupying a larger lot size, at 17 hectares, compared to the 13 hectares for the Capas project.
“Cabanatuan is bigger but they will have bigger lots, bigger sizes because I think Cabanatuan is a richer market,” Zamora said.
Average lot sizes for both projects will range from 100 to 120 square meters, while average floor area is at 60-80 square meters, according to Amon.
“Our typical price range is about P1.3- 4 million for the house and lots [Ajoya brand],” Fernandez de Mesa said.
Each Ajoya project is expected to generate P2 to 3 billion in total sales.
Amon said the three residential projects would be launched in October or November of this year.
Zamora said the firm expects to sell P400 million worth of residential units by year-end.
“Our target is at around P400 million, just for the last two months of the year,” Zamora said.
Construction of the projects will begin in the first half of next year, according to Amon.
“We’re launching and selling this year and start of construction will be first or second quarter next year and turnover will be maybe in a year and a half or two years,” he explained
For its commercial development, AboitizLand is set to give Filipinos a new bargain shopping destination with The Outlets at Lipa.
“The Outlets at Lipa will feature popular international and local brands in a unique outdoor setting with all-year round sales and discounts. It will be complemented by a selection of dining options, services and leisure offerings,” AboitizLand said.
Amon noted that that the 9.3-hectare development will feature close to 30,000 square meters of gross leasable area, which will accommodate 200 to 250 international and local brands.
“For the outlets, we’re actually thinking if we should reschedule the launch of the outlets. The opening of the Outlets will be in April next year, but the brand will be launched very soon,” Amon said.
For 2016, AboitizLand has allocated a capital expenditure budget of P4.7 billion. Half of this or P2.35 billion will be spent for Luzon projects.
Amon emphasized that this year’s capex for Luzon was mostly spent for the land acquisition costs.
“Part of the capex for this year was already spent in acquiring the land,” Amon said.
He noted that land development cost is not yet part of this year’s capex for the Luzon projects since construction is set to start next year.