Diverse offering to boost growth
Anchor Land has started to diversify to rebalance its property portfolio to include commercial, office, as well as hotel and resort developments.
Upscale property developer Anchor Land Holdings Inc. is banking on its market segmentation strategy to further sustain the company’s strong growth.
“We tried to have a clear focus of what we’re going to develop in the future. We try to concentrate on (specific) segments,” said Anchor Land chief executive officer Steve Li.
“The residential segment is, ever since, our main focus. But since two years ago, we started to diversify and try to rebalance our (property) portfolio and that’s why we started with our commercial, hotel and resort developments,” Li explained.
The target, according to Li, is to raise the contribution of recurring sources to earnings to as much as 20 percent by 2021.
“As of now, the residential segment contributes majority (of our earnings). Previously, (the contribution of residential sales) is 100 percent, but right now, it’s around 90 percent. We are trying to have at least 20 percent contribution from recurring (sources) by 2021 while residential sales will contribute 80 percent,” Li explained.
Recurring sources will include its commercial and office developments as well as its hotels and bedspacing facilities.
More specifically, these will include Baylife Venue, positioned as the country’s biggest Chinese seafood restaurant in terms of seating capacity and product offering; the Admiral Hotel, which is being redeveloped; Anchor Land Corporate Center at the Bay City; Cosmo Suites, Anchor Land’s initial foray in the bed space facility development; as well as hotel and resort developments in the islands of Boracay and Coron.
Anchor Land has also started to venture in key provincial cities, starting with Davao City, where it plans to put up 202 Peak Lane, a residential property.
“We are focused on Metro Manila because this is where we believe we know the market better. But at the same time, we have gone out of our comfort zone and we are starting with Davao City. We are just waiting for our building permit, so we’re targeting to start construction by the third quarter,” Li explained. “Davao is our first choice because we see great potential there.”
Anchor Land also expressed optimism about its prospects as it expects demand in the luxury residential market to remain strong.
“Actually, the luxury residential market is still very strong but you need to come out with the right product because the market changes very drastically. And this is what we’re (providing) the luxury market with our projects in Binondo and with Copeton Baysuites, our fifth project at the Bay City,” Li said.
Anchor Land’s current residential projects include Monarch Parksuites, located at the dynamic Aseana Business Park in the Bay City; Oxford Parksuites, a luxurious 39-storey residential condominium in the heart of Manila’s Binondo district; Admiral Grandsuites, the luxury residential component of Anchor Land’s premium Admiral property development along Roxas Boulevard; Anchor Grandsuites, set to become the tallest structure not only in Manila’s Chinatown but in all Chinatowns all over the world upon completion; and Princeview Parksuites in Manila’s Chinatown.
