The condominium, which has since been renamed Fraser Place, is co-owned with Fraser Serviced Residences Pte. Ltd., a Singapore-based institutional property.
UCPB vice president for asset management and disposition division Christine Carandang said that with the strong performance of the serviced apartments segment, investor interest is expected to heighten.
UCPB’s divestment in Fraser Place is consistent with its strategic plan to unload non-core businesses and focus specifically on banking and bank-related activities.
"That has been our game plan all along. We held on to the property because the market was down and now that it is picking up strongly, we think the time is ripe to sell," Carandang said.
UCPB has sold P1.6 billion worth of real and other properties owned or acquired (ROPOA) in the first eight months of 2005.
In the past two years, it disposed of P3.6 billion in ROPOA through public auctions and direct sales.
Fraser Place has performed well that it has become a top choice of expatriates working for Philippine-based multinationals, and foreign businessmen and tourists who come over to the country for an extended stay.
In 2004, Fraser Place recorded an occupancy rate of 91 percent and received the "Best Premiere International Serviced Residence" award from the National Consumers Affairs Foundation. In the first 10 months of 2005, the average occupancy rate has gone up to 95 percent.
"We’re already starting to get serious inquiries, which is not surprising because Fraser is a well-known international brand," said Marissa C. Benitez, director for residential sales and leasing of Colliers International, the exclusive marketing arm for the sale.
"Fraser Place is an excellent long-term investment given its choice location in a quiet district of the Makati central business district and the reputation and track record of the operator ," Benitez added.
Under the serviced apartments concept, the individual units are leased out, and their owners receive a share from the total lease revenues of Fraser Place for the year.
Being a condominium development, Fraser Place’s units are covered by Condominium Certificates of Title, which means even foreigners can own them, Benitez explained.