Foreign buyers boost Cebu property sales

CEBU, Philippines — Cebu's property market remains robust driven by the increase of foreign nationals buying properties here, an official of listed Sta Lucia Land Inc (SLI) said.

In an interview last Friday, Liezel Tuason-Magpoc, CEO and executive vice president, said "there is a very good market in Cebu."

She said this is evident in the increase of real estate developments in Cebu.

Last Friday, the firm officially launched its Arterra Residences at Discovery Bay project in Punta Engaño, Lapu-Lapu City, its third condotel project in Cebu after Soto Grande and La Mirada also located in Mactan.

Magpoc said the company sees an increasing number of foreign property buyers in Cebu, citing in particular that most of the buyers of Arterra Residences are foreign nationals.

"I see a lot of foreigners among our buyers," she said.

The official also hinted the property developer is looking to launch a hotel project in Nivel Hills, Lahug in Cebu City middle next year.

However, she declined to disclose further details on the project.

She said the company is banking on the robust tourism industry in Cebu and the demand for more hotel rooms with the increase in visitor arrivals in Cebu.

Citing a study, she said that more 50 percent of tourists in the Philippines usually visit Cebu.

She also cited Cebu as being a favorite choice for meetings, incentives, conventions and exhibitions (MICE) events.

Sta. Lucia’s 15-hectare Discovery Bay – which the company partnered with Renato Dychangco and Elena Jao for the lot property – is located along the strip of popular hotels in Mactan Island such as the five-star Shangri-La's Mactan Resort and Spa and Movenpick Hotel.

Magpoc said the firm is still evaluating whether it will add another condominium building within the property.

In September SLI said it was laying its foundation that will ensure its long term growth after successfully raising over P8 billion over the past 2 years in unsecured long term debt.

Since 2015, the company aggressively increased its developable properties by acquiring over 658 hectares of landbank while entering into joint venture agreements covering over 991 hectares.

Properties bought and dealt were in varying locations across the country including Cebu.

Total capex requirements to convert these properties to saleable developments amount to roughly P15 billion in the next 3-5 years.

Investments will also include the development of more retail, commercial & tourism-related establishments to complement its massive residential developments.

SLI intends to tap both the debt and equity markets to partially finance this growth.

SLI’s leverage position remains healthy at 0.53 while its book value per share continue to gradually increase from 1.37 in 2014 to 1.55 as of June 2017. (FREEMAN)