Gaisano Grand ventures into real estate

CEBU, Philippines -  Cebu could expect for more residential developments from the Gaisano Grand Group of Companies as the company ventured into the real estate industry. 

Launching its first mid-rise residential project Grand Residences, the retail chain introduced Grand Land Inc., its residential property development arm that aims to develop single detached houses, townhouses, condominiums and unique residential communities around Visayas and Mindanao.

Grand Land Inc. President Ryan Bernard Go said that the real estate arm was organized in 2011 as one of the company’s strategic expansion. 

 The residential projects go hand in hand with the department store developments since both sectors are their top priority, Go said adding that they aim to build residential communities around Gaisano Grand Malls.

With three ongoing townhouse developments in Mactan and Mandaue and other future low-rise condominium projects in Minglanilla, Lapu-Lapu and Davao, Go said that such concept that complements their retail business serves as a strategy for expansion and growth of the Gaisano Grand Group.

Jan Eric Menguito, project head consultant of the company, believes that there is no real estate bubble in Cebu as the prices are not “atrociously” high with good-level interest rates from 6 to 7 percent.

He further described the real estate market in Cebu as resilient and robust, saying that there is a turn-around in the number of investors in the market majority of which are end-users. 

“There’s no real estate bubble yet and hopefully, there won’t be. While the private sector provides opportunities and adds value to the local economy, the government should support in terms of infrastructure and traffic management. With all the real estate companies coming in Cebu, we need to compete with a very good product,” he said. 

Grand Residences is an urban condominium subdivision and resort community project that sits in a 3.2-hectare property at Barangay Kasambagan, Cebu City. 

The mid-rise condominium project will comprise of six 15-storey residential towers.

Menguito said that they will start the construction of the first tower by the year end and complete it by the last quarter of 2014 with a total cost of P350 million. 

The first tower will have a total of 247 units that vary from studio, one-bedroom and two-bedroom units at P1.7 million, P2.5 million and P4.9 million respectively. 

To date, he said that 35% of the units are already sold from their pre-selling period that started last August.

With a positive market reception from young professionals and start-up families, he added that they projected all the units of the first tower to be sold out within a year.  

Sixty-five percent of the project will be dedicated to open space and amenities such as a multi-purpose clubhouse, swimming pool, lotus pond, jogging path and kiddie playground.--- (FREEMAN)