Philippine Real Estate Developers Pursue Joint Venture

Houses, apartments, and condos are among the Philippines’ most important prime real estates. They are popular places of residence for the masses, workers, businessmen and investors, because they provide lodging and everyday comfort. However, the real estate with the most value can be found in Makati, the financial center. This is due to their closeness to various companies and office spaces, including clothing shops, malls, bars, restaurants, and many more. As such, renting apartments and houses is widespread in Makati.Condos, especially, are very popular in the country, especially among businessmen, investors, and high-ranking society people. This is especially true in Makati as a financial district. These days, the demand for leasing condos in Makati has shot up, with more and more corporate people and officials wanting to have their own.Condos in Makati are not only instrumental in shaping the city skyline, but also the way its people live and interact. Nowadays, Philippine housing costs have skyrocketed, with low-cost homes on small tracts of land found almost exclusively at the city’s fringes. Condos, on the other hand, do not come with land costs, so one has a good chance to renting a cheap one.As an answer to the rising demand of housing in Metro Manila, property giant Ayala Land Inc. (ALI) has formed a partnership with the Lucio Tan Group for a real estate undertaking in Mandaluyong City in a joint venture agreement. ALI chairman Fernando Zobel de Ayala and Lucio Tan signed the agreement recently, and entails the use of properties held by the Philippine National Bank (PNB) at Reliance and Mayflower streets close to EDSA. This was the result of an earlier deal between ALI and PNB (through the middle-income housing subsidiary Avida Land Corp.) for a P6-billion venture to build on the bank’s 2.3-hectare asset. By 2011, construction is expected to commence, and will go on three and a half years or so.The project itself is envisioned to be a multi-storey residential community, and will offer features like a clubhouse, garden, children’s play area, and swimming pools. Said PNB, “It is positioned as an affordable housing ideal for young professionals and startup families working or doing business in Mandaluyong City, Pasig City and even Makati City.”ALI also inked an agreement with Lucio Tan’s property from Eton Properties Philippines Inc. with the participation of its low-cost housing subsidiary, Amaia Land. It is a project entailing the development of a real estate measuring four hectares in Amaia Scapes.