Local property developer CDC Holdings Inc. is planning a third project in partnership with International Serviced Residences operator Ascott Limited, a company official said.
In a recent interview, CDC Holdings President and Chief Executive Officer Melesa Chua told reporters that the firm is in talks to expand its partnership with the Singapore-based luxury serviced residences operator.
At present, CDC Holdings has two projects under two Ascott brands in the Philippines, the Somerset Millennium Makati and the Citadines Millennium Ortigas.
The Citadines Millennium Ortigas, set to open in February, offers a total of 290 serviced apartments, while the Somerset Millennium Makati features a total of 137 units, according to its website.
CDC Holdings Vice-President for Sales and Marketing Charlene Chua-Sy said that the firm is always in talks with the Ascott group.
“If they have a new project, it’s a first priority for us,” Chua-Sy said. “We see if they like the location we show them. If it’s okay, then we sign another contract with them.”
Chua-Sy explained that the partnership with the Ascott group involves management contracts, wherein the latter operates the serviced apartments in buildings owned by CDC.
“What they do is that we sign a management agreement with them for a period of years, and then they will professionally operate the rooms to their standards,” Chua-Sy said.
In addition to the Somerset and Citadines projects, Chua said the firm is considering a third project under the Ascott group’s, new LYF brand.
“That’s [LYF] the new brand that Ascott launched. The target is really purely for the millennials,” Chua said.
Chua said that the upcoming project will be located in Metro Manila, but did not disclose a specific location.
She added that around P1.7 billion would be spent for the development of the LYF-branded project.
The project, estimated to be 6,000 square meters in total size, should be launched in April or May next year, and would likely be completed in two years.
Last July, Ascott Limited regional general manager for Philippines and Thailand Arthur Gindap announced that Ascott aims to expand its Philippine portfolio to 5,000 units by 2020, which would translate to 20 to 25 projects across the country.
The properties would be under Ascott’s different brands, the three current brands Ascott, Citadines, and Somerset, and its two upcoming brands, its millennial brand LYF, and its premier brand called the Crest Collection.
In addition to future partnerships with the Ascott Group, Chua said that CDC has a target of 1,000 to 2,000 additional residential units under its portfolio in the next four years.
CDC Holdings Inc. is a property development firmed wholly-owned by the Chua family. It is engaged in the development of residential and mixed-use projects primarily targeted at the middle-income market.