Philrealty’s joint venture on BGC approved

MANILA, Philippines–Property developer Philippine Realty and Holdings Corp. is set to enter into a deal with principal shareholder Greenhills Properties Inc. (GPI) for the development of a 6,400-square meter prime property in Bonifacio Global City into a mixed-use complex.

In a disclosure to the Philippine Stock Exchange on Wednesday, Philrealty said its board had approved the signing of a memorandum of agreement with GPI as soon as it finishes evaluation of proposals solicited from local and foreign architectural firms on a masterplan for the property.

Philrealty undertakes “to prepare at its sole expense” the masterplan for the development of this property owned by GPI located in Bonifacio South District, Bonifacio Global City.

The property consists of four 1,600-sqm lots forming a block bounded by 5th Avenue, 25th St., 6th Ave. and 24th St. in BGC.

“A mixed-use development is envisioned with retail, residential, office and serviced apartments components,” the disclosure said.

“The preparation of the conceptual masterplan will take three to six months after which our company and GPI intend to enter into a definitive joint venture agreement,” it added.

The company had previously undertaken two other property projects in BGC – Icon Plaza and Icon Tower – in both of which it only contributed the land while a partner developed the property. For this upcoming BGC project, Philrealty will be the developer.

This BGC project has been identified as a priority because of robust property prospects in the area.

Philrealty does not necessarily have to raise fresh funds to develop the BGC property as the company intends to generate cash flow from the launch of the second tower of its New Manila residential project Andrea North.

After completing the first building Skyline Tower in Andrea North which is now 35-percent occupied, Philrealty will bring to the property market early next year the second tower Sky Breeze, which will offer 278 units in 31 floors and targeted for delivery to buyers by mid-2015.  Sales value of all units in this second building is estimated at over P2 billion.

The Sky Breeze units will have as small as 50 sqms for the one-bedroom units to as large as 180 sqms selling for P90,000 to P100,000 per sqm.

The Andrea North project sits on a two-hectare property which is masterplanned for five residential towers with a lot of open space.

Philrealty also expects to unlock values out of a townhouse subdivision project in San Fernando, La Union.  The company plans to sell 236 units with a total sales value of P600 to P700 million from this townhouse project.

Meanwhile, it was recently reported that the Quezon City Regional Trial Court branch 93 had denied Philrealty’s motion to terminate the rehabilitation proceedings pending the settlement of over P100 million in residual obligations. The company is confident that this amount would be fully settled by 2013, paving the way for its exit from rehabilitation.