MANILA, Philippines - International serviced residences operator Ascott Ltd. is expanding its presence across the country, as it is set to open its first property in northern Metro Manila, in line with reaching its goal of managing 5,000 units by 2020.
Citadines Millennium Ortigas Manila is the company's seventh property in the Philippines and is the second joint venture with local property developer CDC Holdings Inc. The two companies previously partnered for the development of Somerset Millennium Makati.
The new development offers a total 293 contemporary apartments, which come in the form of studio units, studio executive units, one-bedroom, one-bedroom executive, two-bedroom and three bedroom units.
“By building Citadines Millennium Ortigas Manila in the central business and commercial district of Ortigas, we are providing young business executives and couples, a space where they can both work and enjoy a dynamic city lifestyle,” Ascott regional general manager for the Philippines and Thailand Arthur Gindap said.
The new development is part of a 32-story mixed-used development between Ortigas Avenue and Sapphire road in the Ortigas business district that also features CDC Millennium Ortigas, which offers 96 private residences units.
Around 120 units of the Citadines development located on the 4th to 24th floors will be offered to investors under a sale-and-leaseback agreement.
“With this property investment you don't have to worry about who will lease your property. Once you invest in this property with Ascott, you don't have to worry because automatic they are now managing it. Every month you get your income,” said CDC Holdings president and chief executive officer Melesa Chua.
Investors are projected to get a yield of around six to 10 percent, on average, according to Chua.
Gindap noted the serviced apartments are targeted at the corporates who are planning extended stays.
“Majority of our guests are corporate, so we don't really depend so much on the tourism business. Serviced apartments is a business that is more profitable and more sustainable for the developer and for the investor,” Gindap said.
Target occupancy rate for the service residences will be around mid-70 percent, according to Chua.
“Citadines Millennium Ortigas Manila is just a stone’s throw away from Ortigas’ row of corporate establishments including the Asian Development Bank and Philippine Stock Exchange, as well as health and lifestyle hubs such as malls, restaurants, and fitness centers,” Ascott said.
It added the new property is also easily accessible to other key areas in the metro like Makati City, San Juan, Taguig, and Quezon City.
Each unit of the Citadines-branded development will come fully equipped with necessary home amenities such as a fully functioning kitchen and wireless internet.
“All throughout the building, from the lobby to the amenities to the serviced residence floor, we have applied greenery and green features so residents may find serenity and beauty of nature amidst the bustling city," Chua said.
A garden deck will be featured on the building’s 4th floor, as well as guests’ lounge, swimming pool, and fitness center.
The project has also incorporated energy-and water-saving features throughout the property to help reduce carbon footprint, as it was built to conform to global environmental specifications by using energy-efficient lighting, which makes use of LED lights that burn less energy.
Apartment toilets also feature water-saving fittings like the dual flush toilet cisterns to cut down on water consumption and also makes use of natural lighting.
“More importantly, the apartments have double-glazed windows that prevent unwanted heat from coming in and help reduce medium to high frequency noise from outside," Ascott said.
Citadines Millennium Ortigas Manila is set to soft open later this month.
Chua earlier noted the company has invested around P2.5 billion on the development, which was constructed in a period of three years.
She also expressed that interest in partnering with the Singapore-based company for future Ascott developments.
“We agreed there will be five more (properties),” Chua said.
She did not disclose the exact locations of these future projects, but noted these will be in Metro Manila, particularly in the central business districts.
Gindap earlier noted the serviced residences provider is on track with it’s target of managing 5,000 units in the Philippines by 2020 across 20 to 25 properties.
Among the operatinonal Ascott properties in the country are The Ascott Makati, Somerset Millenium Makati, Citadines Salcedo Makati, Somerset Olympia Makati, The Ascott Bonifacio Global, and Somserset Alabang Manila.
In contrast, properties undergoing development are Citadines Bay City Manila, Citadines Cebu City, Somerset Valero Makati, Somerset Salcedo Village Makati, Somerset Place Salcedo, Citadines Greenhills Manila and Citadines Benavidez Makati.