Real estate developer First RGP Land Development Corporation is set to spend P700 million to P850 million for the development of a seven-hectare residential project in Cavite, a company official said.
In an interview on Friday, First RGP Chairman Resty Perez told reporters that the firm still has a remaining 7-hectare property to be developed in Naic, Cavite.
This is part of the company’s 12.1-hectare lot in the area, 5.1 hectares of which was used for the recently completed socialized housing project called South Morning View.
Perez said that the new development would be an “open market” economic housing project, not socialized housing.
Perez explained that after seeing the socialized housing project, the mayor of Naic requested the firm to build an economic housing project that would cater to the employees of the local government of Naic.
The plan for the project includes a total of 400 units priced at 750,000 each.
The total project cost for the economic housing project is estimated at around P300 million, according to Perez. Construction of the project will begin early next year.
Perez noted that the upcoming project would occupy six hectares of the seven remaining hectares of land.
Apart from the six-hectare economic housing project, the firm will be putting up a mall and a wet market in the same complex, with construction also planned for next year.
The upcoming mall will occupy about half a hectare, and will offer a floor area of around 3,500 square meters, while the wet market will be built along the project’s main road.
In addition, Perez also said that First RGP was also tapped to build a second socialized housing project in Bacoor, Cavite.
Perez said the after seeing the socialized housing project in Naic, the local government of Bacoor asked the company to build approximately 1,700 housing units.
Perez explained that after a meeting last Thursday, he “agreed in principle” to the project, but that it would only contain 1,200 units.
It would take about a year before the company can start with the construction of the Bacoor project, according to Perez, and the estimated project cost would be about P540 million.
First RGP recently completed the construction of its first socialized housing project in Naic, which offers a total of 1,180 housing units priced at P400,000 for each 30 square meter unit.
The socialized housing project was built for the informal settlers living in the Las Piñas waterways.
The beneficiaries of the project will enjoy flexible payment terms, as they are only required to pay P803 a month, which will increase by ten percent every year, for the next thirty years. This will be paid to the Socialized Housing Finance Corporation (SHFC).
The company said that construction of the project took about a year, and units are set to be turned over to the new owners in the next few weeks.
“Hopefully, turnover would be in the second week of November. [We’re] Waiting for some documentation requirements,” the company said.
Perez noted that project cost of the socialized housing project amounted to P470 million, which was funded by the government. The government would recover its investment through the amortization payments of the residents, he explained.
Aside from the flexible payment schemes, Perez noted another advantage of the project is its location, since it is one kilometer away from the Cavite Technopark developed by Laguna Technopark Inc., a joint venture between Ayala Land Inc and Mitsubishi Corporation.
Perez noted that this provides the beneficiaries of the socialized housing project with jobs.
“ . . . that techno park will open I think next year, with job requirements as far as 20,000,” Perez said.
Perez said that First RGP is venturing into socialized housing projects because it would like to change the mindset of other property developers who center their businesses on gaining profit.
“My company, we are very new. But we’d like to change the thinking of the business community, that in this kind of endeavor, we do the exact opposite of the conventional wisdom of maximizing profits,” Perez said.
Perez noted that property developers must work together and produce socialized housing projects in order to help solve the growing 5.7 million housing backlog.
First RGP Land Development Corp was established in 2013. Its maiden project was a hotel called The Suez Serviced Studios Makati.