MANILA, Philippines - At a time when property developers are creating subsidiaries left and right dedicated to particular segments of the market and branding each and every one, there is one company that has managed to continue what it does best, producing products that capitalize on its brand promise – the company’s name.
Landco Pacific Corp., best known for its leisure and resort developments such as Punta Fuego in Batangas and for pioneering hobby farming community starting with Leisure Farms in the same province, is looking at urban and hometown communities as new engines of growth, but at the same time preserving its reputation as a developer of high-quality projects.
“Our brand promise, Life At Your Leisure distinguishes Landco from the other players. As pioneers in leisure development and through 20 years of creating first-of-its-kind leisure lifestyle experiences, we have established Landco as the leader in this category. The Landco brand is known for its original concepts as well as world-class quality standards, Landco Pacific president and CEO Alfred Xerez-Burgos III told The STAR.
The group of Landco founder Alfred Xerez-Burgos Jr. and his holding company AB Holdings Corp. recently acquired majority control of the company after partner Metro Pacific Investments Corp. sold a third of its interest in Landco, resulting in the AB Holdings group raising its stake to 66 percent.
“2009 was a period of consolidation for us. We decided not to launch any new projects last year so that we could concentrate on increasing our level of accomplishment in the projects that have been launched. This is to gear up for growth in 2010 and 2011. Landco is poised for modest growth, and we expect to reap the full rewards next year. As for the rest of the real estate sector, things are looking up as well given the favorable market conditions,” the younger Xerez-Burgos explained.
Lessons learned
He noted that they were pleased with Landco’s performance last year, with sales remaining brisk despite the initial scare regarding the global recession. “It seems that those who had money to invest were afraid to put it in what they felt were risky vehicles so they opted to invest in real estate—real estate after all is a safe investment—it’s something you can use and enjoy, it does not depreciate and it will never run away from you,” he added.
Xerez-Burgos noted that the mood seemed to be much brighter in 2010, as compared to last year, which started with the remnants of the global recession and the fourth quarter stricken by typhoons that dampened investor sentiment. “The mood changed toward the tail end of the year,” he said.
The devastating effects of typhoons Ondoy and Pepeng on many property developments have also jolted many developers into coming up with ways and means of preventing a similar catastrophe. “Given the effects of global warming, it’s best to prepare our designs on more stringent measures. Although most of our projects were not affected by the calamity, it would be prudent to be ahead of the current government regulations and increase design standards,” he explained.
Being a niche player and identified with a particular market segment has its pros and cons but Landco Pacific seems to know its way around.
“The high-end market is a very small slice of the pie, I’d say 10 percent. The future is really hinged on tapping the wider market base – whether one extends the brand or uses a different brand all together. The segment has been there for quite some time now, and we’ve been tapping that market for quite a long time already. The positioning has always remained high-end, but the product specs have been fitted-out for the upper middle market. Think BMW 3 Series,” Xerez-Burgos said.
Engines of growth
He emphasized that Landco has never been known to join bandwagons since they thrive on the spirit of innovation. “However, we understand the need to tap new markets as well. This is why aside from our high-end, private and exclusive properties, we have also created new projects that are tapping the leisure tourism segment—these projects are namely the Playa Series and Hacienda Escudero. And don’t forget that Landco is also in the business of urban communities such as Tribeca Private Residences, a resort inspired condominium development in Sucat, Muntinlupa and high-end first-home residential communities in the provinces such as San Fernando, Baliuag, Cabanatuan, Urdaneta, San Pablo and even Zamboanga City—which are what we call hometown communities. These properties are what we see as new drivers of growth for Landco tapping the OFW market. Of course, we are also tapping the wider leisure tourism market through our leisure tourism estates such as the Playa Series and Hacienda Escudero,” he added.
Landco’s new drivers of growth focus on all fronts, whether it be leisure, urban, or hometown communities. In the case of leisure communities, its Playa series is leading the charge in three different locations: Calatagan, Batangas; San Juan, Laiya; and Samal Island. The company is also expanding current projects to capitalize on high demand for its Metro Tagaytay projects.
For urban communities, the company is already on its fifth out of 15 planned buildings in the Tribeca Private Residences complex. Meanwhile, for hometown communities, it is currently expanding its site in Baliuag, Bulacan.
“We are focusing on developing, expanding and completing all the big projects we launched over the last two years such as Hacienda Escudero, Playa Laiya and Playa Azalea, WoodGrove Park and Tribeca Private Residences,” he said.
Landco then and now
An originator of industry firsts, Landco started its first project, Canyon Woods Residential Resort, and revolutionized the second home industry. It has coined and added to the real estate jargon phrases like ‘residential resorts’, ‘leisure farms’, and ‘leisure tourism estates’.
Staying outside the typical, predominant real estate business models, the company explored new living concepts that respond to the changing emotional and practical needs of the market. Landco’s brand promise stands in all the communities that carry its name.
In the 90s, Landco pioneered the development of Peninsula de Punta Fuego in Nasugbu, Batangas – just as the Philippines was daunted by the Asian economic crisis. The private and exclusive Spanish-Mediterranean inspired residential resort community offers world-class amenities and a rich array of natural features. In spite of the crisis, the project sold briskly—a phenomenon only explained by its concept which resonated with its buyers: an 88-hectare flame-shaped peninsula, providing the most luxurious seaside sanctuary for the country’s most discriminating set.
From the time Landco started 20 years ago to now, there have been quite a few significant changes that have taken place in the company, especially since there is no need to fix when it ain’t broke.
These changes include getting out of property consultancy since 1996, reducing borrowings, deciding to acquire land principally through joint ventures to minimize the attendant risks of landownership, and streamlining the organization by outsourcing non-core operations. “As we have grown over the years, we’ve built a track record and brand that has become synonymous to leisure, Xerez-Burgos stressed.
He believes that the market for leisure-type of developments is still growing, but one must know how to position in such an environment. “Concept, location and track record are key ingredients,” he explained.
Celebrating 20 years
Landco marked another milestone as it celebrated last February its 20th anniversary, or two decades of first-class “Life at your Leisure” developments.
Founded by Alfred Xerez-Burgos, Jr. in 1990, Landco has consistently pioneered innovative concepts in leisure development beginning with Peninsula de Punta Fuego, followed by Terrazas de Punta Fuego and Amara en Terrazas, high-end exclusive seaside residential resort developments with world-class amenities.
Landco was also the first to introduce a hobby farming community by integrating residential resort features with high-value modern farming with its Leisure Farms development located in Lemery, Batangas. This was followed by Ponderosa Leisure Farms in Silang, Cavite; a flower garden community with a Spanish-Mexican theme.
Adding to Landco’s impressive resumé are its leisure tourism development projects: Playa Calatagan and Playa Laiya in Batangas, Playa Azalea in Davao and Hacienda Escudero that straddles Laguna and Quezon. The Playa series and Hacienda Escudero combines the quality of residential resorts like Punta Fuego with the concept of a leisure tourism destination.
Company officials pointed out that “Life at your Leisure” is the essence of every Landco product and this can be felt and experienced even in its urban communities like Tribeca Private Residences in Sucat, Muntinlupa and hometown communities, Landco’s signature blue-label primary homes in the provinces located in Pampanga, Bulacan, Laguna, Pangasinan, Nueva Ecija and Zamboanga City.
Officials added that as the purveyor of leisure living experiences, Landco is committed to consistently create innovative and outstanding lifestyle products that revolutionize the way people live.
Landco’s premier developments include leisure communities Peninsula de Punta Fuego, Terrazas de Punta Fuego, Amara en Terrazas, Playa Calatagan, Playa Laiya, Playa Azalea, Leisure Farms, Ponderosa Leisure Farms, and Hacienda Escudero; urban communities Tribeca Private Residences, Stonecrest; and hometown communities WoodGrove Park, Waterwood Park, MonteLago Nature Estates, Woodside Garden Village, The Courtyard at Lakewood Golf Estates and Woodridge Garden Village.