Keyland & Ascott partner for 110 Benavidez

First, the building itself. It’s a glass-cladded 32-story structure that’s designed by the architectural firm AEDAS, one of the designers of Marina Bay Sands in Singapore, and Aidea Philippines, one of the country’s most recognized architectural practices. 

Looking at the renderings, it’s going to be a beautiful building that’s sure to stand out in its location — 110 Benavidez St. in Legazpi Village, Makati, right behind AIM and just 350 meters from Greenbelt — where most of the structures are decades-old.

Second, the business model. It’s a partnership between boutique real estate developer Keyland Corporation and Ascott Limited, the world’s leading operator of serviced apartments with its three brands: Ascott, Citadines and Somerset spread in 100 cities in 25 countries.

The P1.2-billion condominium will be the new Citadines Makati and buyers have an option to choose between two kinds of units — as an investment wherein the unit becomes part of Citadines and is rented out to mostly long-staying corporate clients, or as a private residence.

At the groundbreaking event two weeks ago, Keyland president Lito Montinola says that of the 209 units, 160 will be sold as serviced residences and the remaining as private residences. 

“If you’re a typical condo investor, what do you do when the unit is turned over to you? You furnish it and rent it out, minsan wala ka pang tenant, so you worry about it,” Lito says. “Or you have a tenant but you’re still responsible for its repairs and maintenance. With 110 Benavidez, when you buy a serviced residence, it’s practically worry-free. Citadines will take care of running it. On a regular basis, you get your dividends. It’s like renting the property out but someone else is managing it.”

Keyland is a new player in real estate at only five years old, but in that short amount of time, they have developed office buildings in the country’s leading CBDs — in Makati, Ortigas and Alabang — as well as mixed-use and residential condominiums such as Signa Designer Residences in partnership with Robinsons Land Corporation. 

They have also reaped several development awards including Property Guru’s Best Boutique Developer for several of their projects such as Best Affordable Condo Development for Casa de Sequoia, Best Boutique Developer, and Best BPO Office Development for South Key Hub.

 “We have carefully chosen design and project development partners who are renowned for their landmark projects,” Lito says. “They all share our mission of building a sustainable, secure and bankable real estate product where investors and residents can enjoy hassle-free living.”

Initially, the plan was to build “just another condo” and sell it. “But we thought, how do we position ourselves in the market? There are serviced apartments here, but they’re not for sale. So we thought, maybe we can do serviced residences for sale.”

Enter The Ascott Limited. From the beginning, Lito felt that Ascott would be the right partner. “First, it was the quality of the properties that Ascott runs. Second, I observed their operations. Serviced residences are their core competence, so why bother running it ourselves? From day one up to when we were discussing the commercial terms, it felt right to partner with Ascott.”

Ascott Limited regional general manager Arthur Gindap says, “For our part, I did my due diligence before making a recommendation to our principals in Singapore.  The first time I was introduced to their properties was at a groundbreaking event for one of their developments, then I saw a residential property they built in Alabang. Keyland’s a small but very nimble company, they make decisions fast and they make them right. What Ascott brings to the table is our name, our expertise and that immediately puts a premium to the building. The business model of 110 Benavidez is something unique to Makati and there’s no doubt it will be successful…and you know others will follow.”

With Ascott’s name on it, Keyland had to follow its standards — from the unit sizes starting at 30 sqm. for a studio all the way to 150 sqm. for a three-bedroom unit — including specifications of the furniture pieces and appliances and “down to the kubiertos.”

“It’s such a hassle trying to rent out an apartment,” Arthur says. “I know that for a fact because I’m trying to rent out one myself. With 110 Benavidez, you get a deposit in your bank account every month based on the occupancy, and you have 10 days a year to use your unit for free, which is transferrable to, say, your relatives or friends who want to do a staycation. Beyond that, you pay the owner’s rate.”

Lito says units start at P7.5 million for a 30-sqm. studio, which is fully furnished when they turn it over in 2022. “We’re looking at six to eight percent per year (return) plus the appreciation of the property. What we also like about the arrangement with Ascott is that they demanded four percent of the annual revenues for the upkeep of the residences.”

Did Ascott drive a hard bargain? “It’s a fair deal. And we’re still friends,” says Lito with a laugh.

“With that amount allocated for maintenance, everything that needs to be fixed will be fixed,” says Arthur. “There’s a 15-year lease back agreement, so if you buy a serviced residence, it will be in the Citadines pool for 15 years. After that, if you want to use it yourself, the unit will still be in pristine condition and the value is preserved. If you buy a typical condo, the problem is maintenance; after five years, it looks old. But since we’ll be managing it, we have to keep your unit up to Ascott’s standards all the time.”

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Visit the author’s travel blog at www.findingmyway.net. Follow her on Instagram and Twitter @iamtanyalara.

For more information on Keyland, visit http://www.110benavidez.com/ or call 772-6280. Its showroom is located at GF 112 Sol Building, Amorsolo St., Legazpi Village, Makati.