Biz Buzz: P477M for Ayala condo unit
Ayala Land Premier (ALP)—the upscale residential property brand of property giant Ayala Land Inc. —has again set a new record for selling the most expensive high-rise residence in the country to date.
After recently pitching its latest project Park Central Towers (at the site of the old Mandarin Hotel at the corner of Paseo de Roxas and Makati or the so-called Roxas Triangle) to preferred clients, ALP sold a three-level penthouse unit called “Anadem Villa One” for P477 million ($10 million). This was the single most expensive high-rise residence ever by ALP or ever sold in the country to date. It is also nearly six times more expensive than the P80 million average selling price of units in Park Central. For the same price, the buyer can buy a large house-and-lot in one of those exclusive subdivisions in Makati.
The previous record-holder for the priciest condo in town was a P234-million penthouse unit at West Gallery Place in BGC sold by ALP last year.
For $10 million, the buyer can look forward to living (or renting out) a 1,635-square-meter penthouse apartment by 2024. This comes with a 281-square-meter pool deck and 12 parking slots. The third level of the penthouse unit is dedicated to an expansive master suite. It’s also the only one of its kind in this tower.
Thanks to ALP’s “elite” pool of more than 200 preferred buyers, the brand has sold P8.3 billion of the P20.5-billion inventory in Park Central even without yet starting the preselling of the units. The month of June was indeed record-setting for ALP, which posted the single-highest monthly sales production of P8.5 billion. Talk about rising consumer affluence in the country.
Meanwhile, the 15,860-sqm prime lot on which the new project will rise is also deemed auspicious. As the infinity symbol encompasses Ayala Triangle and Roxas Triangle, this is believed to represent good fortune and prosperity. Doris Dumlao-Abadilla
Casino transfer a ‘done deal’
THE SCHEDULED transfer of Casino Filipino’s main gaming facility to a new building near Luneta Park seems to be a foregone conclusion.
Barring last-minute hitches, insiders from the state-owned Philippine Gaming and Amusement Corp. (Pagcor) said casino operations needed to transfer as the gaming operator-cum-regulator’s lease contract with the old Waterfront Pavilion Hotel and Casino will expire by year’s end.
Apparently, the previous Pagcor management decided to open the lease contract for negotiation due to concerns that its old contract was just being repeatedly renewed without benefit of bidding or renegotiation—a no-no under RA 3019 or the Anti-Graft and Corrupt Practices Act.
With its new lease contract with Vanderwood Management Corp., Casino Filipino hopes to cash in and be better positioned to compete with the gleaming, mega-casinos in Entertainment City.
For starters, Vanderwood’s building is brand-new and specifically designed with casino operations in mind. For example, its floors are elevated for efficient wiring and maintenance. The facility also boasts of ample parking space, security, easy accessibility via public transport and proximity to a brand-new hotel and spa being built in the area.
But more than the amenities, Pagcor insiders insisted that the new lease contract was beneficial to the agency. Under the new lease arrangement, Pagcor is poised to save roughly P200 million annually due to the lower lease rate of P2,000 a square meter in Vanderwood’s building, compared to the P2,600 a sqm rate Pagcor pays for its leased casino space in Waterfront Pavilion.
Casino patrons and even Pagcor employees seem to be happy with the impending move, citing that after 15 years, its old site was already in bad need of repairs. Daxim L. Lucas
Rethinking airport deals
IT WAS once considered the most “ripe” of public private partnership (PPP) projects left hanging by the previous administration, but a review seems to be underway for the regional airports deal that could spell some delay.
This PPP deal refers to the operations, maintenance and development of the Bacolod-Silay, Iloilo, Davao, Laguindingan and New Bohol air gateways. The projects have a combined value of P108 billion.
According to department spokesperson Cherie Mercado, they were currently studying how the airports have been grouped together and the department could “de-cluster” what was previously set. Nothing has been set in stone, but she made it clear that breaking up the deal into bite-sized potions was the current direction.
She noted that the Duterte administration was bent on pursuing the project, which would modernize provincial gateways and help prepare for the wave of tourists government is trying to lure.
However, the question now was what impact this would have on its timing and whether the changes would be large enough to require a fresh set of government approvals.
The private sector, too, may need to rework some numbers in evaluating this project, which was considered ripe since all it lacked was a bid deadline. That’s apart from the fact that bidders said they were all ready to submit their proposals.
Prequalified groups were Metro Pacific Investments Corp., which partnered with Aéroports de Paris and TAV Havalimanlari Holdings A.S, San Miguel Corp. and South Korea’s Incheon Airport, Aboitiz Equity Ventures with Vinci Airports, Megawide Construction Corp. and India’s GMR Infrastructure, the Filinvest Group with Japan’s Sojitz and Jatco.
It didn’t push through because of its timing so close to the government transition as it could raise concerns and be tagged a “midnight deal.” Hopefully the review and a decision on the final deal structure would be finalized sooner rather than later. Miguel R. Camus
Smashburger coming to PH?
AFTER gaining a foothold in the mainstream US hamburger market by buying into Smashburger, is fast-food giant Jollibee Foods Corp. working on the Philippine debut of the American burger brand? This American burger chain is known for serving 100-percent certified Angus beef burgers that are smashed on the grill to sear in the juices, creating what has been described as “upscale quality burger served at a great value.” It is said to be one of the best-tasting burgers in the US—something that may appeal to increasingly affluent Pinoy consumers.
Jollibee is discussing such possibility with the Denver-based head office of Smashburger, where the Filipino firm now has a 40-percent stake, company chair and founder Tony Tancaktiong said at the sidelines of the company’s stockholders’ meeting last Friday. “But because of the growth (potential in either regions), they are thinking whether they should come to Asia or (expand rapidly in) US first?”
Apart from the Philippines—a natural target for Smashburger’s potential Asian expansion given its affiliation with dominant fast-food player Jollibee—Tancaktiong said Smashburger was also considering to set up shop in Singapore. “But US is still thinking about this. They don’t want to spread out too thin,” he said.
The 40-percent Smasburger buy-in deal gives Jollibee the option to increase its interest by another 35 percentage between 2018 and 2021 and eventually take 100-percent control of the US chain between 2019 and 2026. Smashburger, which has around 350 restaurants worldwide in 35 states in the US and seven foreign markets, is Jollibee’s ticket to the $100-billion US burger market, a segment estimated to be almost three times larger than pizza, sandwich or coffee in terms of sales.
Meanwhile, flagship homegrown brand Jollibee is setting up shop in Chicago this July and likewise debuting into Manhattan in New York (previously operating only in Queens) and even Jacksonville, Florida. The Bee is also working to break into Canada. Japan is another new territory that the Bee wants to enter. Europe may be undergoing a challenging phase right now with ‘Brexit’ (Britan’s exit from the European Union) and all, but this doesn’t deter Jollibee from looking at cities with big Filipino communities like London and Milan (Italy).
The globalizing Jollibee is now the ninth most valuable fast-food chain globally and the gap with the 7th and 8th placers isn’t too big. The ambition is to be among the top five fast-food chains in five to seven years. Doris Dumlao-Abadilla
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