Francisco H. Licuanan III unfazed by volatility

LICUANAN has adjusted to his new life as an entrepreneur

The resolute return of the bears in the local and global stock markets and the grave concerns over the fate of the Chinese and European economies have understandably put already anxious investors on edge, even those in the real estate sector that has been a reliable chugging engine of growth in the Philippines for over a decade.

Not to be flustered is GeoEstate Development Corp. chair and CEO Francisco H. Licuanan III, who has ridden the real estate sector as it hit dizzying peaks and plumbed desolate troughs over his long career.

Licuanan was at the helm of giant property developer Ayala Land Inc. for 16 years until his retirement in 2004, then he ventured into unfamiliar territory as an entrepreneur.

Licuanan and his merry band of business partners set up GeoEstate in 2006 with the objective to “reward customers with commitments it can deliver” and become a name to reckon with in the crowded property development sector.

For the 71-year-old, Harvard-trained Licuanan, there will always be high demand for a carefully planned and designed property project, one that is attuned to a specific set of customer requirements.

Though there will certainly be pockets of the vast property sector that will see a significant slowdown as investors become more cautious with their money, there will always be those that offer profit opportunities.

The Sonria project within the Madrigal Business Park in Alabang, for example, is so far the only high-end condominium project in the area and is enjoying a warm reception from its target market.

The project is ideal for young professionals who want to live on their own as well as empty nesters who no longer have the energy nor desire to take care of large family homes.

“It’s all a matter of timing. At a certain point, a transition takes place,” Licuanan tells the Inquirer, “and now it looks like the right time for a condominium project like this as it is becoming more expensive to have a whole house in Alabang.”

He points out that real estate prices in the self-contained Alabang community have skyrocketed to P70,000 to P80,000 per square meter from just P18,000 a square meter when he retired in 2004.

To attract the market looking for condominium units in Alabang, Sonria—developed by GeoEstate in partnership with landowner Stonebridge Corp.—offers low-density living with just 88 units spread across 16 floors.

There will be only five to seven units per floor to give the buyers a sense of privacy, which is missing from most condominium projects that squeeze as many units as possible per floor to maximize profit.

Licuanan says obsessive attention to detail is what he wants GeoEstate to be known for.

What it lacks in size it wants to make up for in the quality of its real estate developments, starting with The Beacon in Makati that is now on its third and final tower.

While GeoEstate is always on the lookout for additional projects, Licuanan says he and his partners have no intention of building GeoEstate into something closer to the size of the current dominant players in the sector.

“We deliberately want to stay medium-sized. We don’t want the kind of pressure that comes with having to grow, not anymore,” says Licuanan, who has been devoting more time to his other passions—nature photography and travel to exotic locations with his wife and daughter.

“Every once in a while, I do feel my age,” jokes Licuanan, “I don’t make too many deals anymore.

But if he does get involved, Licuanan takes care of project development and finance. By default, he also supervises sales although he is far from being “a sales guy.”

Licuanan, who was both feared and loved during his long tenure at Ayala Land, adds that he has “mellowed” considerably.

And for the record, he never threw anything at anybody.

“That is just an urban legend,” he says in jest, “although I have stopped people in the middle of a presentation. I can tell if they are so unprepared. I tell them to come back when they’re ready. But most of the time, I am patient enough to wait.”

Licuanan’s patience is constantly being tested, especially now that he has embraced the life of an entrepreneur, one that is vastly different from the one he led when he was still the leader of a huge organization.

“There is a life outside the corporate world. It is fun, but sometimes it can be frustrating because the support is not the same as the one you’re used to,” he adds, “You don’t have the same depth of organization so you end up doing a lot of the work yourself. But the advantage is you can make decisions quickly.”

What he does miss about being in the corporate world is that by sheer size of the organization, he becomes part of big and important projects.

“That is a benefit in itself. At a certain point in my career, that was what really appealed to me,” says Licuanan.

Not anymore and the transition to a quieter though still eventful career phase has not been that difficult.

Licuanan says he does not miss being a so-called mover and shaker in the corporate world, saying that he never really fell in love with the trappings of his former position.

“I’ve been there and I’ve done that. It’s time to look for other mountains to climb,” says Licuanan.

And for the skittish investors who are increasingly troubled by the volatility in the market, Licuanan, who has seen it all in the market, advises, “Things are never as bad as they seem at first, nor as good as they seem either.”