Property firms continue investing in Davao projects
DAVAO CITY — Two of the country’s biggest property developers and one Davao-based firm are pouring in more investments for horizontal projects here and in second-tier cities in the Davao region, amid robust sales for existing residential subdivisions in the past three years.
Damosa Land, Inc., the property arm of the Floirendo group’s Anflo Management and Investment Corp., said they are now preparing to launch by the middle of 2016 the third phase of Damosa Fairlane, a high-end residential subdivision in Davao City’s Lanang area near the airport.
Ricardo F. Lagdameo, Damosa Land vice-president for residential, told BusinessWorld they have “nearly sold out phases one and two”, and the additional 25 houses in the third phase are intended “to meet the continued strong demand for Fairlane.”
Launched about two years ago, the seven-hectare (ha) Damosa Fairlane is the company’s first foray into property development on its own and is expected to become a community of 200 houses within the next three years.
Also in the second half of next year, the company is launching the residential component of its 88-ha. mixed-use project in Panabo City, Davao del Norte province, where Anflo’s two main subsidiaries, the Tagum Agricultural Development Co. and the Davao International Container Terminal, Inc., are located.
The initial plan is to develop 34 ha. for residential and commercial components, including a theme park for tourism and recreation. The University of the Philippines-Los Baños has also signed an agreement with the company to build a branch campus within the complex.
Mr. Lagdameo said the company is targeting P1.8 billion income next year with these new developments, as well as from its Seawind condominium project in Davao City. It is set to launch the 4th of six planned towers for the Seawind project by the end of January.
Meanwhile, Camella Davao, a subsidiary of former Senator Manuel B. Villar’s Vista Land and Lifescapes, Inc., reported annual sales of at least P2 billion in the last three years from horizontal projects in Davao City alone.
“Probably we have the highest growth rate in the horizontal here in Davao. We are the only big player for horizontal and we intend to protect that market share that is why we are coming up with more horizontal projects not just in one area but in the north and south and even uptown Davao,” Marlon B. Escalicas, Camella’s South Mindanao cluster head, said.
Among its successful projects include the Cerritos subdivision in Mintal and Camella Communal in Buhangin.
Mr. Escalicas also said their ventures are in line with the city government’s plan to disperse development outside the center.
“We are still doing the role of helping build the city, as catalyst of change we want to change the landscape, not just the center but the suburbs as well,” he said.
Other Camella communities are also being developed in Panabo City and the town of Carmen in Davao del Norte.
Meanwhile, in Tagum City, capital of Davao del Norte, Suntrust Properties, Inc. (SPI) recently launched the first of its planned joint venture (JV) developments for residential subdivisions.
The subsidiary of Megaworld Corp. has inked a deal with PNS (Podador Navarete Santiago) Land Development, Inc., owned by local businessman Lemuel R. Podador, for the Suntrust Palm City project that will offer 1,300 housing units in a 27.7-ha. complex.
“We are very thankful with our partners that they agreed that we will take care of the development, land development, and doing the houses, and all of the amenities. Suntrust will front for that partnership,” Harrison M. Paltongan, president of Suntrust Ecotown Developers, said in an interview.
Mr. Paltongan said capital expenditures for the project is initially estimated at around P2.6 billion, including the acquisition of the property.