UCPB allies with property group, transforms ROPOAs

The United Coconut Planters Bank (UCPB) has entered into an agreement with leading real estate developer Century Property Group to develop its 1,223-square meter acquired property along HV dela Costa St. in Makati into a high-rise residential and commercial condominium.

Under the agreement, UCPB will put up its Makati property, valued at P220 million, as its equity in the venture while the Century Property Group will shoulder the development costs, which are estimated to total P667 million over the next five years.

The land development deal is part of the bank’s two-pronged disposal strategy for its real and other property owned or acquired (ROPOA), UCPB vice president Christine Carandang said in a statement.

Likewise, UCPB has been auctioning off ROPOA and on the other, it is forging tie-ups with other private investors to develop certain properties with upside market potentials so that these can be sold later on at a higher value, Carandang explained.

The bank disposed of P100 million worth of ROPOA bringing to nearly P4 billion worth of bad assets sold through retail public auctions and direct sales since 2004. Earlier, it inked land development deals with Sta. Lucia Realty and Development Inc., Britanny Corp., and Filinvest Land Inc. covering P3.1 billion worth of bad assets that will be developed into high-end and middle-income residential subdivisions.

"For the Century Property Group deal, we are looking at a 30-story condominium with 522 units consisting mainly of studio, one-bedroom and two-bedroom units, and some choice lofts and penthouses on the top floors, which should provide a wide enough choice for end-users and investors alike," Carandang said.

The condominium project will adopt the "fully fitted, fully furnished" concept that the Century Property Group had successfully employed in its South of Market project in Fort Bonifacio, and is now also applying in its Soho Central development in Mandaluyong City. Both are selling well.

The development plans and pricing scheme for the UCPB-Century Property Group project will be completed by the first quarter of 2006, and construction work slated to begin in early 2007.