Cut above the rest

Unfortunately, not all property developers are alike.

Some promise the sun and the moon and the stars, only to renege on their commitments later. Those who cater to the growing middle class all emphasize on convenient location, complete amenities, and affordable payment schemes. But do they actually deliver on their promises?

Sad to say, there are real estate companies that fall far short of delivering quality homes to buyers and leave them to their own devices after the contract to sell has been signed. But there are also those companies that truly make good on what they promise, and even walk the extra mile to see to it that their clients are totally satisfied with their purchase.

One company that has emerged as a leader in the property development sector because of its proven record in satisfying the needs of home buyers is the Property Company of Friends, or Pro-Friends.

Right from the start, the group has focused on the affordable to middle income market. Its growth in the past 16 years has been phenomenal: it has already completed 17 residential projects and construction work on nine more is ongoing.

The Pro-Friends strategy is to offer quality products and value for money  while ensuring quality services to its customers.  While it now focused on the primary home market, it is gradually transitioning to estate development and creation of townships where residents can have ready access to all their needs.

To better understand the company’s programs and plans, company officials responded to some of our questions as follows:

How did Pro-Friends start?

The company was founded in 1999 by a group of eight friends who believed in creating communities and transforming lives of the Filipino families. It aims to give the best dream home packaged with unmatched convenience in strategic locations. From small pocket developments, to medium rise condominiums and townhouses, Pro-Friends has ventured into estate development to meet the different tastes and needs of the Filipino home buyers.

How does Pro-Friends and its projects differ from those offered by other equally reliable developers in the market?

Pro-Friends continues to invest in market studies. This enables us to understand our market better and serve what the market needs. Our projects address the needs of our home buyers as we continue to innovate according to the changing lifestyle of the Filipino families.

How has it been so far for the company in terms of revenues, profits? What are your expectations this year and next year?

Through the years the company has grown in terms of revenues. Catering to the “need” market the company will continue to be robust in terms of growth. There is in fact a housing backlog in this market segment.

How do you choose your project sites? Are your projects in joint venture with the landowners or do you acquire the lands?

Efforts to identify new locations rely on comprehensive studies to assess the area’s population, location, and local regulations, among others will be pursued. Projects are skewed toward estate development, requiring a minimum size in acquisitions. The group has identified areas for expansion and is in the process of acquiring the land and preparing to launch projects in these locations.

What projects do you plan to launch next? Which areas in the country are you targeting next?

After establishing our name in Iloilo in 2007 (Iloilo Estates consists of Park Regency, Monticello Villas, and Park Regency Greens. It is located in Pavia, Iloilo and consists of a total land area of 145.38 hectares. Launched in 2007, this is the company’s initial venture outside Cavite and Metro Manila. It has sold over 2,300 units as of May 2013), we are considering to expand our reach in Mindanao, particularly in Cagayan De Oro.

(Pro-Friends has expanded to other areas in Cavite as well as to Metro Manila and the provinces. Its land bank consists of around 1,665 hectares, mostly in Cavite. Bellefort Estates is located in Bacoor, Cavite. With a current land area of 110.41 hectares, this offers homes with a price range of P2.5 million to P5 million. The Charlotte House Model, for instance, is a 65 sqm single-attached house on a 110 sqm lot area. It has three bedrooms, two toilets and baths, a living room, dining area, kitchen, laundry/service area and a provision for a one-car garage.  Its typical selling price is P2.78 million.

Carmona Estates, located in Carmona, Cavite, has a total land area of 87 hectares. Launched in 2004, it has since expanded to 11 phases and has sold over 3,100 housing units as of May 2013. The property is kid-friendly, as evidenced by the pocket parks and open spaces available for the young ones to play in and explore. It offers, among others, the Pines house model—a 60 sqm townhouse on a 50 sqm lot area with three bedrooms, two toilets and baths, a living room, dining area, kitchen, laundry/service area and provisions for a lanai, CATV, telephone, air-conditioning unit and one-car garage. All this goes for an affordable P1.175 million.

The Palms is the first project north of Metro Manila. It is located in Mexico, Pampanga. With a total land area of 60 hectares, it offers five house models with typical selling prices ranging from P980,000 to P2.3 million.)

Do you plan on entering the vertical development market (condos, residential/commercial buildings, hotels)? Why or why not?

We currently have in our portfolio a mid-rise residential condominium located amidst New Manila and Greenhills in Quezon City.  Ilustrata Residences is solely our vertical residential project at the moment. (Ilustrata Residences, launched in July 2012, is the company’s first mid-rise condominium project. Located in the New Manila and Greenhills areas, it will feature  six towers with 12 to 15 storeys each. It offers studio, one-bedroom, and bi-level units, with typical selling prices ranging from P1.8 million to P4.5 million. It is geared towards growing families, young couples and urban professionals.)

Within our flagship project, Lancaster New City, there is currently one mixed-use building which houses retail stores, services, and BPO offices.  This kind of building will be duplicated and further developed in the coming years as part of the flagship project’s master plan.

Do you intend on focusing on the affordable-middle income market alone or are there plans to enter other segments?

Pro-Friends will continue to help in addressing the housing backlog in the country today. Currently, 60 percent of the 5.5M housing backlog falls under the economic and socialized housing, based on SHDA.

What about the plans of the Metrobank group to increase its stake in Pro-Friends? How has the partnership been so far and how is Pro-Friends and Metrobank group benefitting from it so far?

By mid-third quarter of this year, GT Capital Holdings, Inc. acquired 22.68 percent of Pro-Friends.  Metropolitan Bank and Trust Company is a subsidiary of GT Capital Holdings Inc.

With the option to increase its shareholding to 51 percent within the next three years, Pro-Friends and GT Capital Holdings, Inc. However, GT Capital Inc. & Pro-Friends maintain that this acquisition is beneficial to both parties as the partnership gives way to a stronger business relationship by sharing its resources and expertise.

What percent of Lancaster has been sold so far? Are there plans of expanding the project by offering new phases? What are these plans and how soon can we see them on the ground?

Lancaster New City, the flagship project of Pro-Friends, currently has a land bank of over 1,400 hectares and is continuously growing.  It spans the municipalities of Kawit, Imus & General Trias in Cavite. Since 2007, when the initial pocket sized villages were launched, more than 11,000 housing units have been sold, with a significant acceleration in sales velocity noted since the opening of Cavitex in 2011, as it effectively reduced travel time between Cavite and Manila.