Aboitiz property arm open to foreign joint ventures

CEBU, Philippines - Although a tangible impact from the integrated ASEAN economy is yet to be felt by the real estate industry, AboitizLand Inc., is keeping its doors open for possible joint venture opportunities with overseas developers.

AboitizLand president and chief executive officer (CEO) Andoni Aboitiz said that there have been ASEAN companies, as well as those from other countries, who have expressed interest for partnership with them but, so far, they haven’t found one that interests them yet.

Aboitiz believes that ASEAN integration has no major impact to the real estate industry, saying each country has its own unique systems--economically and culturally. Thus, it is more difficult for a foreign firm to understand, and embrace the market.

Besides, he said the Philippine real estate market is still huge, and that developers like his company are well able to take advantage of these opportunities, even without the participation of foreign players.

AboitizLand has an existing joint venture project with its rival company Ayala Land Inc. in Cebu for the development of 17.5 hectare integrated development in Mandaue City.

Currently, AboitizLand is strengthening its presence in the Luzon market building residential projects from northern to southern parts of Luzon. Developments also include industrial projects, Aboitiz said.

Aboitiz also mentioned Davao and Iloilo cities as the company's target for expansion in the short term.

Already, AboitizLand announced that it is deviating from the real estate trend of condominium development, and will stick to its core competence in horizontal residential projects or master-planned villages.

The 22-year-old developer also announced to spend P5 billion to build and complete projects this year, including its constant move to expand its land-banking around the country. (FREEMAN)