Federal Land Inc., the property development arm of tycoon George Ty, is breaking into Cebu City’s upscale residential property market by investing P3 billion in a two-tower condominium project within its hilltop Marco Polo hotel complex.
The residential project, called “Marco Polo Residences,” is co-branded with Marco Polo, which also manages Federal Land’s hotel property on the seven-hectare Cebu City complex as the global hotel management firm was tapped to extend its management expertise to the residential project.
“I think Cebu is very much primed up and ready for upscale residential [projects],” Federal Land president Alfred Ty said in a briefing Monday during the contract signing with Marco Polo. “The market has shown good reception not just in residential but luxury living as a whole.”
A “trademark royalty” agreement was signed between Federal Land and Marco Polo, allowing the latter to introduce lavish hotel-style living to homebuyers.
The first residential tower will have 22 stories offering 171 one- to four-bedroom units with sizes ranging from 40 to 226 square meters.
Marco Polo Residences’ Tower 2 will have 25 stories offering 171 residential units consisting of studio to four-bedroom units with sizes between 35 and 200 sqm. There will be seven luxury grand villas measuring 382-643 sqm with selling prices starting at $1.15 million.
Federal Land is expecting to book P3.5 billion from the two residential towers.
“As of now, Tower 1 is substantially sold. We have moved on to the second tower already at 40 percent take-up,” Ty said.
Ty said a total of five residential towers could be built. The first residential tower will be ready for turnover by 2013.
Half of project sales will likely come from Cebu and half from Manila and Mindanao. A substantial market for the project consists of investors looking to rent out upscale residential units especially to the expatriate community but many buyers are themselves the end-users, said Federal Land executive vice president Antonio Tan.