Ortigas looks to residential sector for long-term growth

MANILA, Philippines - Ortigas & Co., one of the oldest property developers in the country, is banking on the residential sector for long-term growth prospects.

In the next 10-15 years, the property firm said residential business will account for 50 percent of its business, supported by a P68-billion capital spending for numerous projects.

“In about 10 years, we hope to have a better mix at 50-50. We hope to increase income contribution from development projects to 50 percent,” said Joey Santos, general manager of the real estate division of OCLP Holdings Inc.

“Right now, our income is still heavily on retail,” Santos said, adding that the retail segment accounts for 70 percent of the company’s business.

OCLP Holdings earlier outlined its P68-billion spending for several mixed-use projects in Metro Manila in the next 10-15 years.

“We are funding it mostly from our mix of internal cash flow and debt. The pre-selling of condominium units provides some of the financing,” Santos said.

OCLP Holdings has quietly become one of the biggest residential developers in town, offering a wide range of products worth P2 million to P42 million each, Santos said.

Specifically, the 10-hectare Capitol Commons, which sits at the former Rizal provincial capitol, requires P25 billion in investments.

Capitol Commons, which will be a new lifestyle center in the metro, includes the 64-story upscale residential condominium Royalton, a food and beverage strip, a Unimart Supermarket, and the Estancia retail and office space.

Santos said OCLP Holdings expects P4 billion in sales from all 422 units of Royalton, which is already 25 percent sold out since being launched in January.

OCLP Holdings is also into the 20-year, P25-billion redevelopment of shopping mecca Greenhills, which includes the construction of the 53-story Viridian residential tower.

Around P15 billion was allotted for the 10-hectare Circulo Verde, its township project in Quezon City that will have an urban retail center and a shopping mall.

OCLP Holdings said P3 billion was set aside for more business process outsourcing offices and better retail space in the Frontera Verde project in Pasig City.

The Ortigas family, whose historic roots date back to the 300-year Spanish colonial rule, are among the largest landowners in the country. They developed upscale residential subdivisions Valle Verde and Wack-Wack as well as the 77-unit Luntala townhouse project within Valle Verde 6.