HLURB has lifted SRDC’s suspension, and new licenses were issued for its upcoming projects.
It has been a tumultuous ride, to say the least, for St. Rafael Development Corp. (SRDC).
Although it has been in the real estate business since the ’90s and had somehow survived the Asian financial crisis, SRDC faced its biggest challenge yet only in recent years. And during that time, the developer of several residential projects in Negros and Iloilo barely managed to keep afloat.
According to SRDC chief operating officer Norberto de Ocampo, the company felt the brunt of “poor management” in 2014 when the company had to face multiple woes: from financial losses, stalled development of properties, to failure to deliver to customers, among many others.
De Ocampo revealed that the SRDC was issued a cease and desist order by the Housing and Land Use Regulatory Board (HLURB). This left the company—the proponent behind Palisades, Providence, Providence Palmetto Town Mansions, and Garden Apartments, to name a few—in a dire situation, along with its many employees, agents and customers.
SRDC has moved forward from its past, and on its way to recovery.
“Day by day, we faced worried and angry homeowners and clients whom we have pledged to provide quality service. This did not dampen our spirits. It instead made us more resolved in delivering what we promised,” De Ocampo said in a statement.
“Also. Mr. (Wyden) King’s faith and Christian values sustained us through these difficult times. Honoring our commitments is our way of serving God so we became more determined in pushing for SRDC’s recovery. The new management responded with complete support enabling us to craft SRDC’s current vision and mission and roadmap to recovery,” he added.
SRDC is owned by Wyden King, now known as the businessman who runs his businesses centered on Christian values. King was the heir to a booming motel chain but he decided to close down his share after becoming a full-fledged Christian, according to De Ocampo.
“Usually, bankrupt companies would close down leaving its customers on their own and without their investment. SRDC however, despite the trying circumstance, continued to exist and operate to meet its commitments,” De Ocampo noted.
“SRDC employees were not left in the dark during its troubled times. Though it was unfortunate to be unable to retain most personnel, those retrenched were properly compensated and given assistance. The few who remained were included in the new committed team. The team, under the new management became dedicated to serve its stakeholders and usher SRDC’s way to recovery,” he further explained.
New partnerships
Part of SRDC’s recovery plan was to be transparent to all stakeholders and to enter into new partnerships. This, according to De Ocampo, was meant to show the new management’s “sincerity and commitment to face and settle all its liabilities.”
“We started to reach out to brokers, suppliers, banks and buyers to explain and to make them understand the status of the company. We then started refunding payment of some buyers, paid off our liabilities with the banks and gradually settle obligations to suppliers and government agencies. We also started processing transfer of titles for buyers and issued full refunds to customers who preferred not to continue their payments,” he explained.
Among the agreements that SRDC had signed were those with two reputable local developers namely Ferti-Acres Inc. and East Tropics Land Developer Inc.
The first of SRDC’s partners, Ferti-Acres, is a diversified real estate company established in 1974. With its vision of being the premier real estate company, it offers quality, value for money houses.
Ferti-Acres, which is led by Steven Brian L. Jison, is the proponent behind Silay Centerpoint, Silay Centerville, South Residences, Villa Estefania and Alturra Townhomes.
East Tropics Land Developer, meanwhile, was created by Romeo J. Ignacio and Maria Melanie T. Fabricante who, with their decades of experience in real estate sales, marketing, and construction, are looking forward to a successful joint venture partnership with SRDC and King.
“Aside from having a good track record and workable proposals, we chose the two developers because they share the same goals and values as SRDC. Mr. King wanted SRDC’s partners to have the the same vision, commitment and values,” De Ocampo said.
Road to recovery
With its new partners, SRDC is now well poised to continue with its mission of building high-quality, affordable housing for its clients through new projects.
“It has been a long and difficult road towards working for the redemption of SRDC. We are confident that we are on the right track as we continue to be committed to our partners and clients,” De Ocampo stated.
Indeed, the company seems to be on track as early this year, the HLURB has lifted SRDC’s suspension, and new licenses were issued for its upcoming projects. This meant that SRDC has gained HLURB’s trust, and that the real estate firm can now develop and sell property anew.
“It is a very welcome development to have re-earned HLURB’s trust. This meant that our efforts were not in vain. We wouldn’t have done it without our committed team who worked very hard in getting SRDC standing again. The only way to go is forward, and SRDC has moved forward from its past, and on its way to recovery. We have learned from the experience and now, SRDC is better and stronger,” De Ocampo noted.
“We already reactivated contacts with our network of brokers and sellers. We are constructing our model units, have our ready for occupancy (RFO) units, and as well as ongoing rehabilitation of the water system and facilities in Providence-Iloilo. This is in preparation for our launching and selling activities soon. We will start selling Providence-Iloilo and Negros Cluster 1 this year,” he said.
Next year, SRDC will start developing ELM in Iloilo, Palmetto in Bacolod and Clusters 2 to 6 of Providence Negros. The management will also go into land banking for future projects in these two provinces, De Ocampo disclosed.
“We are confident that our new partners, Ferti-Acres and East Tropics will help bring in more stability and quality in our joint developments. SRDC is always and will remain committed in delivering affordable and quality development to its clients, and to care and serve our value conscious clients, partners and stakeholders,” he concluded.