Key insights into seafarer market boosts growth of boutique property developer
Overseas Filipino workers form one of the pillars of the economy but few companies have succeeded in systematically using opportunities presented by this market.
Property developer ACM Homes is one of the few firms that has used key insights into this market to boost its growth over the past decade. It is, for instance, developing a mixed-use community in Jaro, Iloilo, because a lot of seafarers hail from that area.
Alliance
A strategic alliance with Philippine Transmarine Carriers (PTC), which deploys 42,000 Filipino seafarers annually, has allowed ACM Homes to gain access to this market—including home payments made easy through salary deductions. PTC is now a major shareholder of ACM Homes, which is poised for accelerated growth including the establishments of new townships.
“The partnership strengthens our offerings to key niche segments particularly the seafarers who are part of the Philippines’ emerging middle class,” said ACM managing director Antonette de Guzman. She explained that seafarers comprise 30 percent of ACM’s market and have served as a catalyst to attract other homebuyers in many ACM developments featuring houses from P600,000 to up to P5 million.
According to PTC chair Gerardo Borromeo, PTC partnered with the housing firm initially to serve the needs of maritime workers whose highest aspirations include owning their own home which they consider a badge of achievement.
He said: “This partnership has helped us effectively serve the needs of the crew members we deploy all over the world and sustain our relationships with them. We also want to change the mindset of these seafarers who oftentimes think of themselves as mere contractual workers who need to leave home to earn a living.”
In fact, they are part of the emerging middle class who are responsible for global trade, 90 percent of which are moved through ships, he said. Moreover, one out of four seafarers worldwide is a Filipino. “Thus, there is a need to bring these seafarers to their rightful place as global maritime professionals,” he added.
Guarantee
Borromeo recalled that around a decade ago, global maritime professionals had difficulty qualifying for housing loans because of the contractual nature of their work. PTC effectively guaranteed their loans to the banks, a move that has helped it gain the trust and loyalty of these workers. With the wider availability of housing loans, the alliance has allowed ACM to match housing packages to suit the income, expectations and needs of this expanding market of maritime professionals.
ACM Homes, which has sold over 15,000 homes to low- and mid-income earners, notably seafarers and professionals, announced plans to open new projects in other parts of the country while expanding its product lines from pocket residential developments to larger mixed-use communities including townships and tourism-related initiatives.
De Guzman disclosed that the housing firm is now poised for growth, ready to transport its template of community development to other growth areas in the country. Drawing from its profitable, 20-year track record, it is set to develop an initial eight-hectare, mixed-use community in Jaro and a township development of over 200 hectares in Silang, Cavite.
Among ACM’s expansion plans, De Guzman envisions building communities initially in key cities with high concentrations of seafarers—with these communities offering life-enhancing features that would be helpful to the spouses and the children they leave behind.
Assistance
Programs include livelihood seminars and workshops on backyard farming. These will continue to be available in the new communities and development projects of ACM even to nonseafaring families since these programs have served to differentiate ACM from its competitors.
ACM Homes was founded by De Guzman, Carol Osteria and Mia Gentugaya. The first two were expatriates working in Hong Kong, while Gentugaya is a senior partner in one of the country’s top law firms. Osteria was a senior executive at Chemical Bank where she did investment banking. De Guzman was a regional director for credit at The Elder’s Finance Group. Gentugaya remains a consultant for ACM.
ACM will not be confined to housing development, she stressed. Bolstered by more than 20 years in the cyclical housing industry, it is also exploring vertical projects in addition to horizontal development like townships and housing subdivisions.
De Guzman said: “We have established a track record in delivering value to our target markets through our products as well as services such as assistance in securing financing packages. We are ready to go beyond our present accomplishments
