Worldwide Steel forms real estate dev’t arm

CEBU, Philippines - Worldwide Steel Corp., a pioneer in steel bar  manufacturing in Cebu,  has entered into the profitable real estate sector with the establishment of Worldwide Central Properties Inc. that will initially build two mid-rise residential towers in Banawa area.

The new company is going to invest an initial capital of P450 million to construct the first 12-storey tower that will offer a total of 208 mid-range condominium units  expected for turn over by 2015.

In a press conference, Worldwide Central Properties Inc. president Kent Ong said that the good real estate prospect in Cebu has pushed Worldwide Steel to establish a development arm.

Worldwide Steel Corporation has been in the construction industry for over 30 years now.

Worldwide Central’s  flagship project called Sundance Residences  is targeted to the second generation family or start-up couples, with unit price ranging  from P1.8 million to P2.2 million.

The project is located in a 3,200 square-meter property in Banawa.

“There are a lot of families looking for homes,” Ong said adding that modern families have  embraced the urban lifestyle of living in a condominium to strike balance between work and family.

Despite the  increasing number of condominium projects in Cebu, Ong said the market is still huge and Sundance Residences is expected to gain the trust and patronage of Cebuano buyers.

With a capitalization of P100 million, Worldwide Central Properties Inc. is also planning to develop another mid-range subdivision project in Mactan Island. The residential subdivision will be built on a two-hectare property owned by the family, and will provide more or less 300 housing units.

As of latest count, there are a total of 36 developers whose projects have been approved for condominium buildings in Cebu. This is worth over P100 billion in investments.

A CB Richard Ellis report indicated that the high take-up of 98 percent condominium sales in Cebu is mainly supported by the demand from BPO employees, while leasing deals of condo units are strengthen by the growing number of expatriates coming to Cebu, mostly executives from multinational BPO companies.

A total of 9,532 residential condominium units are expected for turnover this year and within the next five years.

By 2014, an additional supply of 1,195 units will be turned over. While in 2015, about 1,275 units are for turn over followed by 590 units in 2016.

Latest record from Housing and Urban Development and Coordinating Council (HUDCC) revealed that there is a total 170,000 unserved market that needs affordable housing facilities in Cebu. 

Of the 170,000  unserved residential market, 60 percent  can only afford to buy houses or condominiums  ranging from P1.2 million to P3 million. (FREEMAN)