Filipino-Italian green-builder Italpinas Development Corp. (IDC) is aggressively pursuing its land banking program outside Metro Manila, aiming to create opportunities for the provincial property market.
“Through a combination of qualitative and quantitative market studies, the company has identified target acquisitions located in Subic in Zambales; Lipa, Batangas; Cagayan de Oro in Misamis Occidental; Montelago in Oriental Mindoro; Dumaguete in Negros Oriental and Iloilo City,” IDC officials disclosed in a press briefing Wednesday.
IDC plans to use around a fifth or P47 million of its expected proceeds from its upcoming initial public offering (IPO) for prospective land purchases in the provinces.
IDC Chairman Romulo Nati said the company aims to bring people back to the provinces and give them alternative home locations to central business districts, especially in Metro Manila.
Formed in 2009 and formerly Italpinas Euroasian Design and Eco-Development Corp. (ITPI), IDC has two projects in the pipeline: the Primavera City in Pueblo de Oro Business Park in Cagayan de Oro City, and the Miramonti project in Sto. Tomas, Batangas.
Construction of its first project, the Primavera City in Cagayan de Oro, is set to start in the first quarter of 2016.
IDC Vice President for Banking and Business Development Harold Dacumos said the development for Phase 1 of Primavera City alone costs around P670 million.
Primavera City is a 7-building mixed-use condominium development that will offer residential units and a few commercial and office components.
Nati said only this project would benefit from IDC’s upcoming IPO, which still awaits go-signal from the Philippine Stock Exchange.
The Securities and Exchange Commission (SEC) has recently approved the IPO, which is expect to churn out about P220 million, to be used for capital expenditures (P120.68 million), land banking and acquisition (P47 million), retirement of existing loans (P20 million), and general working capital (P33.12 million).
IDC’s IPO has Unicapital Inc. as the sole underwriter.
Carrying the “eco-logic” trademark, IDC products offer cost-effective, innovative solutions that incorporate functionality with natural environment. Its buildings minimize the use of expensive materials, reduce environmental impact, and drive economic growth with the use local resources.
The company’s principal services are real estate development and general design, including architecture, site-planning and survey, construction, interior design, and management. Specializing in alternative and environment-friendly design, IDC also renders marketing and financial management, and planning.
The company won the 2014 Pacific Property Award for Best Mixed-Use Development in the Philippines and the 2011 Southeast Asia Property Award (SEAPA) for Best Condo Development in the Philippines. It was also a finalist in the Most Promising Clean Energy Investment Opportunities at the 2010 CTI-PFAN Asia Forum for Clean Energy.
The thirteen-storey mixed use development will offer 252 residential units, ranging from 26-40 square meters in size and will come in studio, 1-bedroom and 2-bedroom type units.
Nati said the residential units would cost an average of P3 million.
Dacumos said pre-selling for the residential units is targeted to commence before the end of the month, adding that the seventh building would function as a 32-storey condotel to be built by 2020.
Primavera would also offer a commercial area on the ground floor, two floors of office space in the first building, and another two floors for parking in the second building.
The Primavera City promises sustainability, as it features eco-friendly elements like photovoltaic panels that will generate energy for the building’s consumption.
The target completion for Phase 1 of the development is in the fourth quarter of 2017.
IDC’s second development project is called Miramonti in Sto. Tomas, Batangas.
The project will sit on a 1,796-square-meter land in San Rafael, Sto. Tomas, Batangas.
Dacumos said the estimated development cost of the project is P700 million to 750 million.
He said IDC is still in the process of validating requirements for the project, but is expecting to start construction by the third or fourth quarter of next year.