MANILA, Philippines - The Philippines, riding high on an economic boom, is rapidly getting the attention of foreigners as more and more expatriates are coming to the country to set up their businesses.
With the robust foreign investor interest in the country, global serviced residence leader The Ascott Limited and local real estate developer CDC Holdings Inc. have partnered anew, this time for a residential and serviced residence project in the Ortigas central business district (CBD).
The partners launched yesterday CDC Millennium Ortigas, a luxury project offering serviced residence units, residential apartments and commercial spaces. The 31-story project will be completed in December 2015.
The Ascott Limited, the world’s largest serviced residence owner-operator, will manage the serviced residence component of CDC Millennium Ortigas through Ascott’s Citadines brand that caters to expatriates and business travelers.
The serviced residence, which will occupy the fourth up to the 24th level, will offer 210 studios to two-bedroom units. There will also be 90 units available for investment that may also be a part of the serviced residence pool.
“We expect to see more business executives to stay in the country for an extended period of time as they set their businesses here,†said Joanne Golong-Gomez, director for Philippines sales and marketing of Ascott.
Validating its improved economic performance, the Philippines has received investment grade scores from major debt watchers Moody’s Investors Service, Fitch Ratings and Standard & Poor’s Ratings Services.
“We believed in the market before these investment grade ratings. We’ve been entrenched in Manila since 2000,†said Arthur Gindap, regional general manager for the Philippines and Thailand of Ascott.
But the investment grade ratings provide additional boost to the country’s property sector, Gindap said.
CDC Millennium Ortigas’ residential units, which will occupy the 25th to 32nd floor, will be managed by CDC Holdings. The strategic location of the tower allows unit owners to enjoy a live-work-play lifestyle.
“CDC Millennium Ortigas is a prime investment, not just for urban professionals, but also families and those searching for something truly innovative,†said Charlene Chua, vice president for sales and marketing of CDC Holdings.
“This opportunity is stable, hassle-free, cash generating, and one that stakeholders won’t want to miss out on,†she said, adding that expected gross rental yield is six to eight percent and capital appreciation is seen at three to five percent per year.
For CDC president and CEO Elise Chua, the project has already attracted numerous Japanese firms that plan to buy by the floor. She said the company has started selling units at P120,000 per square meter. “I am confident I can sell out in the next 12 months,†she said.
To set the project apart from other residential and service apartments, CDC Holdings and Ascott incorporated green features to meet Singapore’s BCA Greenmark Assessment criteria. This will result in energy savings from lights and air-conditioning systems and large amounts of natural illumination.