MPIC hikes offer to P20 B to take over MRT-3

MRT-3

MANILA, Philippines — Metro Pacific Investments Corp. (MPIC) has increased its proposed amount of investment to rehabilitate as well as take over the operations and maintenance of the Metro Rail Transit Line 3 (MRT-3), from an initial P12 billion to P20 billion.

“The details of the proposal have changed. The required amount of investment is larger,” MPIC president and chief executive officer Jose Ma. Lim told reporters.

He said the required amount of investment for the MRT-3’s rehabilitation, maintenance and operations is now P20 billion, which includes the firm’s equity requirement.

When the group submitted the proposal to the government last July 14, it involved an investment of P12 billion.

Transportation Secretary Arthur Tugade said last month the Department of Transportation has granted the group of MPIC and Ayala Corp. the original proponent status for the MRT-3’s rehab as well as operations and maintenance.

The proposal would involve the rehabilitation of the train system without any fare increase for at least two years, as well as the handling of operations for  30 to 32 years.

Following the grant of original proponent status, Lim said the group is now waiting for the National Economic and Development Authority (NEDA) to review the terms of the proposal.

“NEDA will review the terms of our proposal. They’ll discuss it. If acceptable, then it will be subject to a Swiss challenge,” he said.

Should the group be awarded the concession for the MRT-3 which covers North Ave. station in Quezon City until Taft station in Pasay City, the rehabilitation, operations and maintenance would be pursued through a separate special purpose vehicle, similar to the ownership structure of Light Rail Manila Corp. (LRMC).

LRMC, which operates the Light Rail Transit Line 1 currently running from Roosevelt station in Quezon City until Baclaran station in Parañaque, is composed of MPIC’s Metro Pacific Light Rail Corp., Ayala Corp.’s AC Infrastructure Holdings Corp., and Macquarie Infrastructure Holdings (Philippines) PTE Ltd.

Earlier, MPIC chairman Manuel V. Pangilinan said it is important to address issues of the MRT-3 for the benefit of consumers.

The train system along Edsa which has been going through a series of breakdowns and service interruptions, currently carries more than 500,000 passengers per day.

Source: http://www.philstar.com/business/2017/10/02/1744504/mpic-hikes-offer-p20-b-take-over-mrt-3

PH retail scene remains upb

SM Mall of Asia

The apparent shift in the global retail landscape may, after all, work out in the country’s favor.

While many retail stores in the United States and elsewhere in the world had been shuttered over the last few years, rendered obsolete by the consumer’s growing preference for online shopping among other factors, the Philippines meanwhile has been attracting a number of major foreign brands to set up brick-and-mortar stores in the country.

Attractive destination

“The Philippine retail scene is set to have a more dynamic narrative moving forward as the country is poised for further growth. As foreign retailers continue to seek new growth markets, we anticipate the Philippines to be one of the key focus markets by global brands within the Asia Pacific region,” said global real estate advisor Cushman & Wakefield.

In a report entitled, How Global Brands are Shaping the Metro Manila Retailer Landscape, Cushman & Wakefield noted that the Philippines is an attractive destination for global brands, underpinned by its solid macroeconomic fundamentals and the rising disposable income of its young population.

“The country is enjoying positive economic conditions and anticipated to benefit from the demographic dividend in the next 20 years, if managed properly,” it said.

It added that apart from its solid macro fundamentals, strong investment in infrastructure and construction, and solid household consumption, stimulated by low inflation and interest rates, are boosting the country’s economic growth.

Beyond these indicators, the potential gains from the demographic dividend, combined with the large volume of mall space and competitive occupancy costs, remain its two distinct advantages, overall, which should help the country become one of the attractive retailer destinations in the region.

“Brands and developers alike are expected to take advantage of these opportunities while quickly adapting to the evolving consumer tastes combined with the increasing, albeit healthy, competition from new and existing foreign brands entering and expanding in the country,” the report stated.

“There is no denying that the Philippine retailer market is on a positive trajectory and we are excited to see how this sector transforms and shape the future retail scene,” it said.

Foreign brands

Despite headwinds from the global retail scene, the retail market in Metro Manila remained positive with the entry of 113 new foreign brands in the past two years, according to Cushman & Wakefield.

“While encouraging, the figure is a slight slowdown from the 128 new brands that entered the capital region between 2013 and 2014,” it said.

This could be attributed to two major factors namely: poor-performing parent companies of major retailers in key markets, which are now focusing on rationalizing costs instead of expansion; and tightening local competition on two levels namely, the high volume of new concepts under the same retail categories and segment, and the concentration of retail demand within select markets that have limited shopping mall space.

Based on the report, the mid-tier market continued to dominate the local retailer scene with at least 100 new foreign mid-range brands entering the Philippines since 2015.

It disclosed that food and beverage (F&B) brands continue to outpace other retail types with 64 new concepts that were introduced in the country over the same period.

Thirty eight F&B concepts were reported to have entered the market in 2016, an all-time high in the past seven years. New concepts include Atelier Vivanda, Denny’s, Moe’s Southwest Grill, Texas Roadhouse, Namoo House, and Uma Uma Ramen/Horse’s Mouth, among others.

After a banner year in 2014, retail activity from the clothing and apparel segment meanwhile exhibited a slowdown in subsequent years as select brands are facing bankruptcy and downsizing operations across the globe.

“Nonetheless, select fast fashion brands continued with their aggressive expansion within and outside Metro Manila. This has resulted in the tightening competition within the clothing and apparel space as fast fashion brands offer a wide array of products at price points comparable to local apparel brands,” it added.

E-commerce

Although the emergence and growing importance of the online space in retail operations have threatened brick-and-mortar stores elsewhere in the world, the case is quite the opposite in the Philippines.

“Considering the psychographics of Filipino consumers where there is a strong malling and dining culture, we expect physical stores to remain relevant. This is particularly true for F&B brands as brick-and-mortar stores play a significant role in creating a unique customer experience,” the report stated.

Cushman & Wakefield pointed out that the development of key infrastructure will be crucial to support the growth of e-commerce.

In the Philippines, limited access to fast and reliable internet may likely discourage potential consumers from using mobile apps or accessing web stores.

Similarly, the lack of infrastructure and restricted mobility in other parts of the Philippines may limit the markets that can be tapped by retailers.

Finally, traffic congestion within Metro Manila and other highly-urbanized and dense cities throughout the country is projected to impact productivity and increase logistics costs.

Still, local retailers seem to be preparing for the inevitable. Two of the largest local conglomerates—the Ayala Group and SM Group—bought a 49 percent stake in Zalora Philippines and a 34.5 percent stake in the parent company of 2GO Group Inc., respectively, thus suggesting a positive outlook on the sector and tangent industries.

 

Source: http://business.inquirer.net/237759/ph-retail-scene-remains-upbeat

Ongpin unveils luxury Benguet real estate development

Ongpin Benget

MANILA, Philippines — Roberto V. Ongpin, the tycoon behind some of the country’s most luxurious playgrounds such as the members only Balesin Island Club and City Club, has just unveiled his latest project, the Alphaland Baguio Mountain Lodges, and is already enjoying brisk demand from some of the country’s elites and well-heeled crowd.

Alphaland, his upscale property development, has already sold 20 units, less than a month since Ongpin showed the sprawling Baguio estate last Sept. 1 to some of the Philippines’ richest people.

“It’s my latest baby. We opened it last Sept. 1 for viewing and on that day, 20 units were sold. Some (guests) bought two units,” Ongpin told The STAR in an interview last week in his swanky office in Alphaland’s Makati Place.

Alphaland Baguio Mountain Lodges is a 78-hectare master-planned development of 300 lodge-style log homes made of imported western cedar or pine logs from Finland. The estate is nine kilometers north of Baguio City on Ambuklao Road, or a 15-minute drive from the city proper.

The property sits on an elevation of 5,200 feet above sea level, above Tagaytay Highlands’s elevation of 2,000 feet and Baguio City’s 4,300 feet, allowing residents to enjoy crisp pine-scented mountain air, Ongpin said.

The idea is to bring back the glorious days of Baguio, the country’s summer capital, which through the years, has become too dense and crowded.

“I decided that I want to do something for those who really love Baguio, the way it was 50 years ago,” Ongpin said.

The project, with a development cost of P5 billion, would be developed in phases, with the first 50 homes to be finished by April 2018; the next 100 homes by April 2019 and the final 150 homes by April 2020.

The log homes are comprised of four, five and six bedroom lodges, selling for an introductory price of P40 million, P45 million and P50 million, respectively.

Aside from the log homes, there is a three-level Clubhouse Inn, which has a grand fireplace, a fully stocked bar and indoor dining areas with a capacity of 16 people. There are two outdoor dining areas which can seat 60 guests, with views of the mountains of the north.

The masterplan was done by the EcoPlan of Florida in the US, the same master planner for Balesin. The lodges will be built individually as horizontal condominiums, where the land would be proportionately owned by all 300 homeowners. This will allow for the optimization of the locations and views of all the homes sites.

There will be three helipads on the property.

“We will also provide regular Cessna airplane service from the Alphaland Hangar in NAIA or Clark to Loakan Airport with comfortable shuttle service from the airport to the site,” Ongpin said.

Ongpin’s latest project adds to his portfolio of luxury playgrounds, enjoyed by an elite group of people in the Philippines and the rest of Asia.

These are the City Club in Alphaland Makati Place and Balesin Island Club, southeast of Quezon.

In Balesin, Ongpin recently bought the nearby Patnanungan Island where he will put up an international airport, hotels, villas and a golf course to meet growing demand for the exclusive island resort.

“Snob appeal – that’s my business,” said Ongpin, as quoted by Forbes in an article published in August.

Source: http://www.philstar.com/business/2017/10/02/1744507/ongpin-unveils-luxury-benguet-real-estate-development

Dominguez wants REIT investments to be used solely in PH

Carlos Dominguez

MANILA – Finance Secretary Carlos Dominguez III is amenable to any amendment of the Real Estate Investment Trust (REIT) if there is an assurance that money allocated for this purpose will be used for domestic activities.

The REIT Act lapsed into law in 2009 but has not really moved forward on issues like minimum public ownership and taxation.

Under the law, REITs are required to have a public float of 40 percent in their first two years after listing with the Philippine Stock Exchange (PSE). Public ownership should rise to 67 percent by the third year after listing.

There have been proposals to cut the public float to a little over 30 percent to encourage more real estate businesses to start a REIT.

Lawmakers are now awaiting the Department of Finance’s (DOF) input on possible amendments in the law.

Dominguez said he is open to any amendments on the law if this means money will be used for productive purposes in the domestic market and not overseas.

“They can amend the law, do what they want, but until I am assured that the funds are going to be recycled in a productive way, I will not implement it,” he said.

Dominguez said he wants REITs to infuse the funds for domestic purposes instead of investing these overseas in order to boost the Philippine economy.

Proposals for REIT amendments were not prioritized by the previous administration, thus, investors continue to call for such.

“I don’t know what their reason was but my reason is, I don’t mind giving a tax-free investment if it is reinvested. But if it’s not reinvested and sent to buy property abroad and declared as dividends and will be spent abroad, that doesn’t make sense,” he added.

Source: http://www.interaksyon.com/dominguez-wants-reit-investments-to-be-used-solely-in-ph/

Megaworld set to open 14th mall

Southwoods Mall

Megaworld on Thursday said Southwoods Mall, located inside its integrated township Southwoods City in Biñan, Laguna and Carmona, Cavite, will open its doors in October.

The property giant’s 14th mall offers 58,000 square meters (sq.m.) of retail, dining and entertainment facilities.

“As a trademark, we also want to infuse a bit of nightlife in the mall, that’s why we have a 24-hour food court. Our cinemas maybe, we’ll experiment to having late-night screenings. The third floor will have an activity center for bands, live music and a lot of restaurants and bars as well.” Kevin L. Tan, senior vice-president and head of Megaworld Lifestyle Malls, said in a briefing at the Southwoods Mall on Thursday.

The mall will also have four cinemas, including two that will feature Dolby Atmos Surround Sound technology, as well as one outdoor and two indoor activity centers.

Mr. Tan said 40% of the tenants at the Southwoods Mall are in the food and drink (F&B) business. “In the end of the day, we are still big in F&B culture. We go out with people, we go out and eat,” he said.

Aside from the mall, Southwoods City will soon have mid-rise condominiums, two business process outsourcing (BPO) office buildings, a hospital and its own transportation hub.


senior Vice President and head of megaworld lifestyle malls Kevin L. Tan gives reporters a preview of what Southwoods Mall has in store. — Photo by Anna Mogato

“That’s why our townships have very strong value proposition […] A typical lifestyle of one who resides in our township is to basically live there, you find a job already also in the township and you do all your grocery shopping, all your services, you can meet up with your friends all within the township,” Mr. Tan said.

The township scheme also addresses the traffic woes faced by most Filipinos living in urban areas. “This is basically an integrated community. You don’t even need a car anymore because you can just walk from point A to point B,” he said.

Addressing the rise of online retail, Mr. Tan said that there won’t be much of a threat when it comes to shopping malls in the Philippines.

However, he predicted that they may have to adapt to some online retail practices such as payment schemes.

Mr. Tan said Megaworld is planning to open two more malls in the next five months, one in Iloilo and another in Alabang. This is in line with the company’s target to have 27 malls around the country by 2020.

The property company owned by billionaire Andrew L. Tan reported an 11% rise in attributable net income to P6.44 billion for the first six months of 2017. Megaworld attributed the positive performance to robust rental income from office, mall, and commercial space leasing.

Shares in Megaworld added 4 centavos or 0.82% to close at P4.94 apiece on Thursday.

Source: http://bworldonline.com/megaworld-set-open-14th-mall/

DoubleDragon to spend over P4 billion for industrial hubs, hotels

DoubleDragon

MANILA, Philippines – DoubleDragon Properties Corporation plans to spend P4.8 billion to develop 100,000 square meters (sqm) of industrial leasing hubs and 5,000 hotel rooms across the Philippines by 2020.

DoubleDragon president Edgar “Injap” Sia II said on the sidelines of the company’s annual stockholders’ meeting that funding for these ventures will primarily come from the planned sale of P7.5 billion worth of shares, slated before the end of 2017.

Sia said DoubleDragon is slated to open its 1st industrial leasing hub before the end of the year. This is located in a one-hectare lot within the Luisita Industrial Park in Tarlac.

Under the plan, DoubleDragon will build two industry hubs each in Northern Luzon, Southern Luzon, the Visayas, and Mindanao. (READ: DoubleDragon to build ‘biggest’ hotel in Mindanao)

These industrial hubs will primarily cater to fast food companies looking for commissaries and cold storage facilities. It will also target manufacturing firms and logistics firms looking for warehouses.

At the same time, DoubleDragon is looking to build 5,000 hotel rooms across the country, primarily through its JinJiang and Hotel 101 brands.

P2.7 billion from the share sale will also be set aside for land banking activities for expansions plans beyond 2020.

DoubleDragon is in talks with foreign and local underwriters to handle the deal. (READ: Injap Sia out of Forbes list of Filipino dollar billionaires)

Aside from raising fresh capital to finance new ventures, DoubleDragon said the planned share sale will also enable it to attract foreign institutional investors.

The company aims to be part of the benchmark Philippine Stock Exchange index over the next two years.

DoubleDragon earlier raised its 2020 goals by targeting 1.2 million sqm of leasable space from the initial target of one million. It also projects a net income of P5.5 billion in 2020, from P4.8 billion.

Sia also reported that the company will secure by 2018 all the land needed to hit its target of 100 CityMalls that would have 700,000 sqm of leasable space by 2020.

At present, it has 20 CityMalls that are operational and 25 others under construction.

Meanwhile, the first 4 office towers within the 4.7-hectare DD Meridian Park in Pasay City are set to be completed by the end of 2017, ahead of the original timeline.

Sia said the 4 office towers are mostly leased to business process outsourcing companies and online gaming firms.

The entire DD Meridian Park will have a total of 280,000 sqm of leasable space.

Also slated for completion this year is Jollibee Tower in Ortigas, which will add 48,000 sqm meters of office space. – Rappler.com

 

Source: https://www.rappler.com/business/180642-doubledragon-spending-industrial-leasing-hubs-hotels

Filinvest’s STUDIO 7 celebrates first concrete pouring

Filinvest Studio 7

Filinvest celebrates another milestone with the first concrete pouring of its latest vertical, integrated, and mixed-use development, Studio 7. With its young and social vibe, Studio 7 is poised to be every independent and urban-dwelling millennial’s ideal abode. This mixed-use development is envisioned to typify the live-work-play lifestyle by seamlessly integrating office spaces, residential towers and a podium mall in the heart of Quezon City.

BEING AT THE CENTER IS THE NEW MODERN

Studio 7 allows you to be at the center of everything. Located along EDSA in Timog, Quezon City, Studio 7 offers easy access to more than 30 shopping complexes, over 50,000 retail establishments, more than 15 universities and colleges and a number of government agencies in this bustling city.

Its proximity to the MRT network and the bus transport system ensures connectivity when travelling around the metro that allows one to explore the neighboring cities and its sights and sounds.

CELEBRATE YOUR INDEPENDENCE

Live your life at your own pace in your own space at Studio 7. Have the freedom to choose between 18- and 23-square-meter units in a 17-storey residential tower and have an adventure in your own home.

Celebrate your individuality and mingle at Studio 7’s Chill Pad found at the podium deck or unwind in exclusive amenities such as the lap pool, outdoor fitness area and mezzanine lounge. Recharge and rejuvenate in the serene ambiance of the sky garden and the yoga deck at the podium garden.

GO OUT OF THE BOX

Go out of the box and transform your lifestyle from an office setting to an exciting shopping center experience with the Studio 7 mall. With its myriad of retail shops and dining choices, one can dare to try something new whether an outfit or a gastronomic experience, worthy of an Instagram story!

THINK FORWARD

The Studio 7 office tower has been pre-certified LEED Silver under the U.S. Green Building Council’s LEED green building program for core and shell developments. This is complemented by its technologically-savvy, future-ready features. Aside from this, Studio 7’s central location and accessibility makes it an ideal workplace.

ADVERTISEMENT

Studio 7 defines ease and diversity as it redesigns the workplace balance and attitude with its 36,000 sqm±, 18-storey BPO Tower that can house up to 14,000 employees. At the end of a shift, these weeklong warriors can sit back and relax at the podium mall or recharge at the comfort of home both at Studio 7.

 

Source: http://business.inquirer.net/236085/filinvests-studio-7-celebrates-first-concrete-pouring

Lucio Tan, Henry Sy’s hometown in China eye more investments in PH

Investments in PH

FUZHOU, China – The Chinese province that is the hometown of some 1.68 million Filipino-Chinese eyes more investments to the Philippines amid improvement of bilateral ties between the two countries.

The Fujian provincial government said its historical ties and geographic proximity to the Philippines makes it an attractive market for Chinese investments in agriculture, mining, and electronics.

“Fujian and the Philippines are only divided by sea and are very close. We would like to cooperate with the Philippines in the areas that we are strong,” Li Lin, Deputy Director General of Fujian’s Foreign Affairs Office, told Filipino journalists visiting the provincial capital Fuzhou on Saturday, July 15.

Since 2016, under President Rodrigo Duterte, trade between the Philippines and Fujian province has reached $6.9 billion.

“The Philippines has about 100 million people and has great potential for our economic cooperation… Also because of the improved condition of China-Philippines relations, there is also potential for our investments to grow,” said Zhao Wei Ling, Deputy Director of the province’s Department of Commerce.

“Our businessmen are interested in the agricultural sector, labor-intensive industries and the mining sector,” Zhao said.

Bilateral ties between the two nations improved under Duterte, who opted to set aside the country’s landmark victory over the South China Sea, in exchange of China’s financial assistance and economic support.

Chinese ties

One of the reasons for the interest in the Philippine market, Zhao said, is the success of Chinese businessmen originating from Fujian province.

Found along China’s southeastern coast, the province was the origin of thousands of early Chinese settlers in the Philippines.

Provincial officials of Fujian cite historical ties, proximity, and improved ties with the Philippines as reasons for more investments. Photo by Camille Elemia/Rappler

Provincial officials of Fujian cite historical ties, proximity, and improved ties with the Philippines as reasons for more investments. Photo by Camille Elemia/Rappler

“One of the main reasons for investing in your country is that there are a lot of overseas Chinese who came from Fujian. They are quite successful business people. Henry Sy, Lucio Tan – they are all from Fujian province,” said Zhao.

Tan owns flag carrier Philippine Airlines, as well as other businesses in the banking and manufacturing industries. Sy is known for his SM malls business, which has since expanded to banking and real estate.

Tourism

The province and the Philippines are also keen on improving tourist arrivals both ways.

Fujian province is home to 37 million people. One of its cities, Xiamen, has direct flights from Manila and is becoming a favored tourist destination among Filipinos.

“We can see there are frequent people-to-people exchanges on both sides, and the Philippines is a major tourist destination for Fujian people,” Li said.

“The Philippine tourists coming to China are also increasing and last year more than 100,000 Filipino tourists visited Fujian province,” he added.

Many Filipinos also live and study in Xiamen prompting the Philippine government to establish a Consulate in the city.

In 2016, Xiamen and Cebu City have signed a letter of intent to parter as sister cities. While there is still a need for a formal agreement, Li is hopeful this would be finalized soon to further promote cultural and economic exchanges.

Source: https://www.rappler.com/business/175761-china-fujian-province-agricuture-mining-investments-ph

Rockwell, Mitsui Fudosan team up for QC project

Rockwell and Mitsui Fudosan

In a statement released over the weekend, the Lopez-led property developer said it signed a joint venture agreement with Mitsui Fudosan for residential portion of The Arton by Rockwell.

The deal would give the Japanese company a 20% equity stake in the three-tower high-end residential development that will rise along Katipunan Avenue in Quezon City.

“We are honored that Mitsui Fudosan chose to partner with us in their first foray in the Philippines and we hope that this will be the beginning of a long and fruitful partnership with them,” Rockwell Land President Nestor J. Padilla was quoted as saying in a statement.

Mitsui Fudosan is engaged in developing, leasing, selling, and managing a portfolio that spans retail, office, residence, hotel, and logistics. The Tokyo-based firm is currently expanding overseas with residential projects present in the United States, the United Kingdom, Taiwan, China, Malaysia, Singapore, Thailand, and Indonesia, with expansion still eyed across Asia.

With the partnership, Rockwell Land joins the roster of firms that have tapped Japanese real estate developers for their projects.

Last week, GT Capital Holdings, Inc.’s property arm Federal Land, Inc. signed a P20-billion agreement with Nomura Real Estate Development Co., Ltd and retail service firm Isetan Mitsukoshi Holdings Ltd. to develop the Sunshine Fort in Taguig City.

Meanwhile, P.A. Alvarez Properties and Development Corp. also signed an agreement with Hankyu Hanshin Holdings, Inc. for a P656-million affordable housing project in Dasmariñas, Cavite in June of this year.

The first tower of The Arton, called Arton West, will officially be launched on July 29. The entire project will stand on a 1.9-hectare property with the three towers set to have 24, 28, and 34 towers, respectively.

The Arton will feature 1,700 units ranging from 27 square meters (sq.m.) for studio units up to 103 sq.m. for three-bedroom units. The listed property firm earlier noted the absence of a high-end development in the Katipunan area, with the construction of The Arton intended to fill that gap.

The transaction will still be subjected to regulatory approval, particularly from the Philippine Competition Commission for acquisitions valued at more than a billion pesos.

Rockwell Land is rolling out P14 billion in capital expenditures for new project launches this year, which includes its first venture into resort developments in Mactan, Cebu.

Earnings of Rockwell Land surged by 51% in the first quarter of 2017 to P516 million, following a 52% rise in revenues to P3.07 billion. The company is targeting a double-digit growth for the full-year 2017.

Shares in Rockwell Land were down by a centavo or 0.56% to close at P1.78 each at the stock exchange on Friday.

Source: http://www.bworldonline.com/content.php?section=Corporate&title=rockwell-mitsui-fudosan-team-up-for-qc-project&id=148311

Low interest loans for socialized housing

Housing Loans

The country’s largest organization of real estate and housing industry players has urged anew for the passage of a bill that will allow all income-earning Filipinos to be entitled to low-interest, long-term housing loans.

More specifically, the Chamber of Real Estate and Builders’ Associations Inc. (Creba) wanted to amend Republic Act No. 7835, also known as the Comprehensive and Integrated Shelter Finance Act (CISFA) of 1994.

Creba national president Charlie A. V. Gorayeb explained in a statement that an initial P350 billion could then be made available and used for the proposed Centralized Homebuyer Financing Program (CHFP), which will ensure centralized funding and decentralized lending for socialized housing units.

Bond issuances

According to Gorayeb, the amount can be sourced from yearly bond issuances by the Social Security System (SSS) at P5 billion; Government Service Insurance System (GSIS) at P25 billion; a minimum of P70 billion up to a maximum of 70 percent of Pag-IBIG Fund’s total investible funds for housing; P200 billion from the unused or residual agri-agra funds of banks; and another P50 billion from government’s annual budget, all with mandatory guaranty cover from Home Guaranty Corp.

Those fund sources, added Creba national chairman Noel M. Cariño, have already been identified by law and need only to be integrated for effective administration to beneficiaries.

Creba explained that the CHFP shall be exclusive to borrowers of socialized and economic home loans, with no component for development loans. This would ensure that the use of funds would strictly be for shelter acquisition by the homeless, which was estimated to be at least 5.7 million families nationwide.

Fixed interest rates

Qualified borrowers can take out loans worth P1.5 million and below (for socialized hosing) for residential units in subdivisions or medium-rise condominium buildings, with a fixed interest rate of 3 percent. For economic housing, loans of more than P1.5 million up to P3.199 million will have a fixed interest rate of 4 percent.

All loans shall be payable for 25 years or more.

All income-earning citizens who qualify as beneficiaries under the Urban Development and Housing Act and who have not acquired housing assistance from any government institution shall be eligible for home loans through the CHFP.

“A secondary mortgage institution shall be organized by the government to lead this housing capital development effort to set in motion the country’s securitization program for housing,” Gorayeb said.

Creba has envisioned the CHFP to have two components namely loans program under Pag-IBIG Fund, and housing securitization under the National Home Mortgage Finance Corp. (NHMFC).

The proposed bill is foremost in Creba’s five-point agenda, which also covers affordable homes for employees in urban areas; lands for residential, commercial and industrial development; efficient housing regulations; and a full-fledged housing and urban development department.

 

Source: http://business.inquirer.net/233220/low-interest-loans-socialized-housing