Local developers urged to consider joint ventures

CEBU, Philippines —  As Cebu continues to be a place of interest among residential property buyers, local developers are encouraged to consider joint venture deals with global firms to develop more premium vertical villages in Cebu.

“Property firms should seize the opportunities provided by the growing popularity of projects developed thru JVs (Joint Ventures). We believe that these JVs should help local players differentiate their projects in the market and maximize the foreign firm’s expertise in developing residential units,” Colliers Philippines suggested.

According to Colliers latest report, condominium stock reached 67,200 units as of end-2022 versus Metro Manila’s 151,000 units.

Colliers recommended that national and homegrown developers thoroughly assess the ideal product types for end-users and investors in Cebu.

According to the real estate professional services and investment management company, developers should also emphasize the JV projects’ upscale amenities and strong potential for capital appreciation, which are among discerning buyers’ key preferences.

Colliers mentioned the recent announcement of Cebu-based listed property developer Cebu Landmasters Inc. (CLI) in its newest JV deal with NTT UD Asia Pte. Ltd. (NTTUDA) to develop residential towers in Cebu City, as a good and timely move.

In its disclosure stock exchange, CLI said that both companies are now preparing formal notifications to the Philippine Competition Commission (PCC) and intend to secure PCC clearance for the new JV company which shall be known as CLI NUD Ventures, Inc.,

The CLI NUD Ventures is poised to develop premium-grade residential towers in Cebu City.

NTTUDA is an international developer of commercial properties such as office buildings, residences, and other mixed-use developments in Southeast Asia.