Duterte pushes reforms, rails vs graft

July 23, 2019 | 12:32 am

By Norman P. Aquino
Associate Editor

PRESIDENT Rodrigo R. Duterte on Monday asked lawmakers to pass more tax reforms starting with a proposal to cut corporate income tax, overhaul fiscal incentives given out to companies and further increase tobacco and alcohol excise tax rates.

In his yearly state of the nation address to Congress halfway through his six-year term, Mr. Duterte also asked Congress to restore the death penalty for drug trafficking, plunder and other heinous crimes, while promising to defend Philippine rights in the South China Sea “in a peaceful way.”

“It inspires me with determination to pursue relentlessly what we have started at the start of my administration,” the president said in a speech that started an hour late and lasted about one-and-a-half hours.

“Believe me, I will end my term fighting.”

Mr. Duterte, 74, started his address bragging about his sky-high approval ratings, even as he admitted that government corruption continues and the illegal drug menace persists.

Mr. Duterte, the first Filipino president from Mindanao, marks his midterm with an 85% approval rating, according to Pulse Asia Research, Inc. despite what his critics regard as a head-in-the-sand response to Chinese aggression in the South China Sea.

He said further tax reforms would energize micro, small and medium enterprises to expand their businesses that would hopefully generate more jobs in the coming years.

Unexpectedly absent from the president’s speech is his earlier call for lawmakers to relax economic provisions of a three-decade-old constitution, as well as his previous push for a shift to a federal government system so growth will spread outside Manila, the capital.

Instead, Duterte zeroed in, aside from illegal drugs, on the territorial dispute with China and persistent government corruption.

He later told reporters it wasn’t the proper time to talk about constitutional amendments.

“The West Philippine Sea is ours, there’s no ifs and buts, it is ours,” the tough-talking leader said in his address, referring to the South China Sea, more than 80% of which China claims.

“But we have to temper it with the times and the realities we face today,” he added, noting an armed conflict with China would only bring “grief and misery.”

Mr. Duterte blamed Benigno S.C. Aquino III, his predecessor, for allegedly giving way to China after a 2012 standoff in Scarborough Shoal that later allowed the regional power to occupy the shoal.

“The president struggles to make sure that he will not be a lame duck president in the remaining three years of his term,” Marlon M. Villarin, a political science professor from the University of Santo Tomas, said by telephone. He added that having a super-majority in Congress “gives Mr. Duterte a political assurance that his programs and activities will be delivered.”

Mr. Villarin noted that the president thinks that the only way to resolve the sea dispute with China is through diplomatic means. “But what is unprecedented is when he blamed his predecessor about the Scarborough Shoal. It is so not like him.”

‘NO SACRED COW’
In his speech, the president said the recent uncovering of massive fraud perpetrated against the public health insurance system proves that corruption is pervasive. “Huge amounts of medical funds were released to cover padded medical claims and imaginary treatment of ghost patients. I am grossly disappointed,” he said.

At the same time, Mr. Duterte claimed to have fired and caused the resignation of more than a hundred officials and appointees of government “without regard to relationship, friendship and alliance.”

“There is no sacred cow, as the saying goes, in my administration.”

The president likewise vowed to pave the way for the removal of corrupt officials at the Bureau of Customs, where more than 60 people are under investigation for corruption.

“That is one area where we need more focus,” Philippine Chamber of Commerce and Industry Chairman George T. Barcelon, said by telephone, referring to Mr. Duterte’s call on the Land Transportation Office, Social Security System, Bureau of Internal Revenue and Bureau of Customs to shape up.

“The president should also have mentioned about the needed investment in training workers given the job-skill mismatch.”

“The European Chamber of Commerce of the Philippines (ECCP) urges the government to further improve the efficiency of tax collection and address leakages,” ECCP Executive Director Florian Gottein said in an e-mailed response to questions.

“On top of the list is the TRABAHO (Tax Reform for Attracting Better and High-Quality Opportunities) bill where the ECCP urges the government to start reducing the corporate income tax rate as quickly as possible.”

The chamber wants to government to lower the tax to 25% at the onset and an annual 1 point cut until the proposed 20% tax rate is reached.

“We also urge the government to come up with a competitive fiscal regime as quickly as possible to dispel any uncertainties,” Mr. Gottein said.

Under Mr. Duterte’s leadership, Congress cut personal income taxes and increased levies on some goods and services. Lawmakers also replaced quantitative restrictions on rice with tariffs to bring down prices, as well as passed a measure easing business processes in the country.

A continuing reform thrust, despite political noise, convinced S&P Global Ratings to lift the Philippines’ debt score to “BBB+” — a historic high for the country — with a “stable” outlook from “BBB,” two notches above minimum investment grade and a step away from an “A” rating.

Mr. Duterte asked legislators to approve a Salary Standardization Law that will benefit underpaid public teachers, and a National Land Use Act that will help local governments craft development plans as foreign investors start coming in. This will help disperse economic activities to the countryside, particularly the Visayas and Mindanao, he said.

The president likewise sought the approval of a bill that will streamline the bureaucracy, and vowed to pave the way for the use of coconut levy funds for farmers.

The economy has grown about 6.5% in the past two years compared with 6.3% in the six years through 2016, and Mr. Duterte’s original target of 7-8% until 2022.

Inflation has been easing back this year into the central bank’s 2-4% target after successive multi-year monthly peaks that averaged a nine-year-high of 5.2% last year. — with Arjay L. Balinbin

National government fiscal performance (June 2019)

July 23, 2019 | 12:31 am

THE NATIONAL GOVERNMENT’s fiscal balance swung to a deficit in June after two straight months of surplus — even amid relatively flat state spending and a double-digit hike in tax collections — with the first half nevertheless yielding a much smaller budget gap than a year ago, the Bureau of the Treasury reported on Monday. Read the full story.

Fiscal balance swings to deficit in June, but 1st half gap shrinks

July 23, 2019 | 12:31 am

By Karl Angelo N. Vidal
Reporter

Treasury data bared a P41.8-billion fiscal deficit last month that was 22.93% smaller than the year-ago P54.3 billion, as revenues grew 4.32% to P233.9 billion from P224.2 billion and expenditures slipped by 0.99% to P275.7 billion from 278.5 billion.

Tax collections, which contributed 90% to total revenues, increased by 11.85% to P210.5 billion from P188.2 billion. The Bureau of Internal Revenue (BIR), which accounted for three-fourths of tax collections and 67.46% of total revenues, collected 15.39% more at P157.8 billion from P136.8 billion, while the Bureau of Customs, which contributed less than a fourth to tax collections and more than a fifth to total revenues, raked in 2.5% more at P51.3 billion from P50 billion.

Last month also saw non-tax revenues — consisting mainly of subsidies for taxes on government transactions — fall by 35.06% to P23.4 billion from P36 billion even as the Treasury collected 37.13% more at P10.7 billion, compared to P7.8 billion a year ago, while other offices’ take was more than halved to P12.7 billion from P28.2 billion.

Despite the mid-April approval of the P3.662-trillion national budget that caused government expenditures to increase by 7.8% in May (with primary expenditures — or net of interest payments — growing by nine percent that month), a 3.06% drop to P246.6 billion in June’s primary expenditures — which include spending on infrastructure and other capital outlays — from P254.4 billion a year ago offset a 20.91% rise in interest payments to P29.1 billion from P24.1 billion.

FIRST-HALF DEFICIT SMALLER
The year-to-date budget balance stood at a P42.6-billion deficit that was 77.91% smaller than the year-ago P193-billion gap.

Total revenues increased by 9.71% to P1.548 trillion last semester from P1.411 billion a year ago, with tax revenues growing by a tenth to P1.381 trillion from P1.255 trillion. The BIR collected 10.56% more at P1.066 trillion from P964.5 billion, while Customs grew collections by 8.45% to P303 billion from P279.4 billion.

Non-tax revenues increased by 6.95% to P166.6 billion from P155.8 billion, as the Treasury increased collections by 32.48% to P87.6 billion from P66.1 billion while other offices’ take dropped 11.89% to P79 billion from P89.7 billion.

The government spent 0.83% less at P1.59 trillion last semester from P1.604 trillion a year ago, as a 1.94% drop in primary expenditures — “mainly because the government operated under a reenacted budget during the first four months of 2019” as well as the ban on new public works 45 days ahead of the May 13 midterm elections — to P1.41 trillion from P1.438 trillion offset an 8.8% increase in interest payments to P180.1 billion from P165.5 billion.

“We are still making our analysis, but basically the decline is due to delayed passage of the 2019 GAA (General Appropriations Act) and ban on implementation of projects due to the local and national elections,” Budget Assistant Secretary Rolando U. Toledo said in a mobile phone message when asked for an explanation for June’s smaller public spending.

The government operated on a reenacted 2018 budget from January to April 15, when President Rodrigo R. Duterte signed this year’s national budget into law but vetoed P95.3 billion in appropriations that he said were not in accordance with the administration’s priorities, slashing the total to P3.662 trillion.

The delay prompted the inter-agency Development Budget Coordination Committee (DBCC) in mid-March to cut its 2019 GDP growth assumption to 6-7% from 7-8% originally.

Economic managers had also blamed delayed budget enactment for the slowdown in GDP growth in the first quarter to 5.6% — its worst quarterly performance in four years.

Nicholas Antonio T. Mapa, senior economist at ING Bank N.V. Manila, said the spending drop could result in “lackluster” second-quarter GDP growth, which will be reported on Aug. 8. “Despite the government’s best efforts to implement ‘catch up spending’, the projected misstep coming from the government spending side coupled with possible handicapped capital formation could mean 2Q GDP struggles to get past six percent again,” Mr. Mapa told reporters in an e-mail.

Still, Mr. Mapa said the Philippines could end 2019 at the lower-end of the state’s 6-7% GDP target on the back of reinvigorated household spending, a resurgence in capital formation as the Bangko Sentral ng Pilipinas cuts policy rates further and stepped-up government spending.

Meanwhile, Rizal Commercial Banking Corp. economist Michael L. Ricafort said the year-on-year increase in BIR collections signals “improvements in recurring revenue collections that reflect improvement in overall fiscal performance,” which could lead to further upgrades in the country’s credit ratings.

According to the latest DBCC meeting last week, revenue collections are projected to reach P3.15 trillion in 2019, equivalent to 16.4% of GDP. Disbursements, meanwhile, are targeted to reach P3.77 trillion this year, equivalent to 19.6% of GDP.

The programmed deficit ceiling was maintained at 3.2% of GDP from 2019 to 2022 “to sustain the government’s investments on infrastructure and human capital development.”

Gov’t seeks to limit power plant outages as part of performance benchmark

July 23, 2019 | 12:30 am

THE ENERGY REGULATORY COMMISSION (ERC) has asked the public to submit comments on its proposed interim benchmark for reliability of power generation units in the country, especially in terms of allowable outage days per year.

“The commission intends that the outage allowance in days per year, as determined herein, will serve as the maximum or cap per technology for all power plants,” the ERC’s proposal said.

The benchmark sets varied number of days during which power plants using specific technologies can go on planned and unplanned outage. Technology classifications consist of: pulverized coal, circulating fluidized bed, combined cycle, gas turbine, diesel, geothermal, hydroelectric, oil-fired thermal and biomass.

In order to address the need for a standard on outage allowance of power generating plants, the ERC reviewed their performance, particularly in terms of outages. The commission took into account the monitoring and evaluation of the performance of conventional generating plants with total capacity of at least 20 megawatts (MW).

From 2015 up to the first half of 2019, the ERC’s review showed that, on the average, oil-fired thermal power plants had the most number of outage days per year at 84.5, of which 50.4 were unplanned.

Diesel-fired plants had the least number of outage days at 15.8, followed by combined cycle plants at 19.1 days.

Pulverized coal power plants had average outage days of 50.1, of which 28 were unplanned. Circulating fluidized bed coal power plants had outage days per year of 40.8, of which 24.3 were unplanned. Coal-fired power plants account for the biggest share of the country’s generating capacity.

The ERC used data from the grid reliability monitoring system, a Web-based application that encompasses report submission by power generation companies and generation of reliability performance indices.

In terms of availability factor — or the ratio of available hours to total hours that a generating unit should be operating — the power plant technology without the highest average reliability performance is diesel at 95.66%, followed by combined cycle at 94.78% and geothermal at 94.40%.

Biomass plants are the least reliable at 72.91% followed by oil-fired power plants at around 76.86%.

The ERC said it also looked into the 50^th, 60^th and 70^th percentile of reliability performance indices of generating units with the lowest outage rates or better performance.

It said it was considering the 50^th percentile as the interim reliability performance benchmark.

The regulator is giving interested parties until July 26 to submit their comments on the proposed benchmark. — Victor V. Saulon

Ayala acquires property firm based in Pampanga for P2.4B

July 23, 2019 | 12:09 am

AYALALAND Logistics Holdings Corp. (ALLHC) continues its expansion with the acquisition of a real estate firm based in Pampanga for P2.39 billion.

In a disclosure to the stock exchange on Monday, the listed company said it has acquired 100% of shares in Unity Realty & Development Corp. (URDC) last Friday.

The transaction value, which was agreed upon by both parties, will be paid in three installments. URDC will then become a wholly owned subsidiary of the Ayala-led firm.

ALLHC said URDC owns a property in Mabalacat, Pampanga, which is a suitable location for a new industrial park.

“The transaction further strengthens the vision of ALLHC to be the leading real estate logistics and industrial estate developer in the Philippines,” the company said.

The Philippine Stock Exchange, Inc. imposed a one-hour trading halt on ALLHC’s shares on Monday morning to allow investors to digest the material information.

URDC’s 2018 audited financial statement shows that it has 612,445 shares worth P30.62 million. The company reported a net loss of P313,153 in the 2018, higher than its P12,500 loss in the year before. It had no revenues to be recognized in both reporting periods.

Parent Ayala Land, Inc. has mandated ALLHC to be its main vehicle in the development of industrial estates in the country. The company’s portfolio includes a majority stake in Laguna Technopark, Inc., which manages the 460-hectare Laguna Technopark in Sta. Rosa and the 135-hectare Cavite Technopark in the municipality of Naic.

It is currently developing a logistics and warehousing facility in Laguna Technopark that will offer a leasable area of more than 60,000 square meters (sq.m.). The property will be divided into 40 units with cuts of 1,200-1,500 sq.m.

ALLHC is also developing an industrial park in Cagayan de Oro near the Laguindingan airport, where it looks to offer 42 parcels of land with cuts of 7,000 sq.m. It has another industrial park in the pipeline located in Central Luzon.

Aside from its foray into industrial parks, the company continues to expand and rehabilitate Tutuban Center in Manila, which now has a gross leasable area of about 53,000 sq.m. and new retail and wholesale concepts.

Previously known as Prime Orion Philippines, Inc until its name change in February, ALLHC booked a net income attributable to the parent of P113.57 million in the first quarter of 2019, 1,366% higher year on year. Gross revenues also surged 454% to P985.4 million.

Shares in ALLHC jumped 3.49% or 14 centavos to close at P4.15 apiece at the stock exchange on Monday. — Arra B. Francia

QC set to become the most connected city

July 23, 2019 | 12:09 am

QUEZON CITY will soon become the “most connected city” in the country in the coming years, thanks to the major public infrastructure projects such as the Skyway Stage 3, Metro Manila Subway and Metro Rail Transit Line 7 (MRT-7).

Jettson P. Yu, founder and managing director of commercial real estate consultancy firm Prime Philippines, said these projects would boost Quezon City’s connectivity to other areas in Metro Manila.

“I think Quezon City in the next three to five years will be the most connected city in the Philippines,” he said during the Philippine Real Estate Investment Forum 2019 organized by Prime Philippines.

“Quezon City will also be the gateway of the north… The Skyway Stage 3 will also help connect Makati and Quezon City in just less than 15 minutes, so the way we see Quezon City, maybe in the next ten years or twenty years… it’s going to be a… highly connected city. Main railway stations will be completed in Quezon City, and not only that, it will be a place where people live, work, shop,” he explained.

The Skyway Stage 3 project is an 18.68-kilometer elevated toll road that will connect Gil Puyat (formerly Buendia) in Makati City to the North Luzon Expressway (NLEX) toll plaza in Balintawak, Quezon City. This is being constructed by Citra Central Expressway Corp. (CCEC), a unit of San Miguel Corp. (SMC).

The Metro Manila Subway project will have its first three station along Mindanao Avenue, Tandang Sora, and North Avenue in Quezon City. This project is funded by the Japan International Cooperation Agency (JICA).

Another major project is the 22-kilometer MRT-7 which will have 14 stations running from North Avenue in Quezon City to San Jose del Monte in Bulacan. This is also being developed by SMC.

These public infrastructure projects have prompted developers to launch new projects in Quezon City. Ayala Land, Inc. is continuing to develop its Vertis North development, near the North Avenue Grand Central Station that will host the MRT-3, MRT-7 and Light Rail Transit (LRT) Line 1.

DMCI Project Developers, Inc. earlier said it is spending around P7 billion on the construction of two more condominium projects in Quezon City this year, after seeing continued robust sales of existing condominiums in the area.

NEXT-GEN CITY
Meanwhile, Julius M. Guevara, vice-president for corporate planning at D.M. Wenceslao & Associates (DMWAI), said the company is positioning its flagship project Aseana City as the “next-generation city” of Metro Manila.

“Our tag line is Aseana City is the next generation city for Metro Manila… The city is not just about entertainment and casinos. It’s going to be a full-blown CBD [central business district] and sustainable and sufficient, and inclusive… and we are creating a very diverse CBD,” he during the same forum.

Aseana City is a mixed-use development in Parañaque City being developed by the DMWAI. Projects include Aseana One, Aseana Two, Aseana Three, and MidPark Towers. — Vincent Mariel P. Galang

Zalora PHL targeting 50% annual sales growth

July 23, 2019 | 12:08 am

By Arra B. Francia, Senior Reporter

ONLINE fashion retailer Zalora Philippines (ZPH) is projecting a 50% annual growth in sales for the next five years as it sees more Filipinos shifting to online shopping.

“We will end the year with more than 50% growth year on year, and we expect that trajectory to continue,” Zalora Group Chief Executive Officer Gunjan Soni told BusinessWorld on the sidelines of a company event last week, referring to the group’s operations in the Philippines.

Aside from the Philippines, Zalora also has operations in Singapore, Malaysia, Thailand, Vietnam, Taiwan, and Hong Kong.

ZPH President and Chief Executive Officer Paolo L. Campos III expressed confidence the growth will continue for the next five years, given Filipinos’ increasing preference for online shopping.

“We actually see that trend continuing in terms of very high double-digit growth for at least the next five years. We don’t see growth tapering, we see it sustaining at the very high double-digit level,” Mr. Campos said in a separate interview.

The ZPH top executive added that sales events, such as the 11/11 shopping event in November and 12/12 sale in December, helped boost volumes by five to 10 times compared to a normal day.

E-commerce adoption is also seen to accelerate. Ms. Soni said that e-commerce adoption in the Philippines is currently at two percent, much lower compared to the United States which is already at 25%.

“We think that the Philippines is going to get there in a far more accelerated way because already the Philippines is number one when it comes to time spent on social media,” she said.

On the other hand, the group is also looking to introduce what it calls a country-agnostic shipping strategy, which will allow customers to choose products from both local and international players.

“One of the propositions we expect to be able to bring is that we will be able to allow them (retailers) to enlist with us, it will not just be listed for the Philippines but listed for all markets. This will allow them to market there, and we will support that growth and expansion,” Ms. Soni explained.

This strategy will also promote new talent and designers in the platform, as they will be able to export their creations to other countries as well.

ZPH recently broke ground for its newest fulfillment center on a 3.7-hectare property in Muntinlupa City. The facility will have 40,000 square meters of racking space and a 7.2-million item storage capacity, on top of 5,000 sq.m of office space for its customer service and e-production teams.

NEX Tower bags ULI Asia Pacific Award for Excellence

July 23, 2019 | 12:08 am

NEX TOWER recently received the Asia Pacific Award for Excellence from the Urban Land Institute (ULI), the only project in the Philippines to receive such an honor.

Besting over 50 projects from the region’s leading developers, the 28-storey structure was developed by the Nova Group.

The ULI Award for Excellence is widely regarded as the property industry’s most prestigious awards program, recognizing projects that showcase best land use practice across Asia Pacific.

According to Ricardo C. Cuerva, managing director of Nova Group, NEX Tower, which has over 38,400 square meters (sq.m.) of premium grade A office space, is envisioned to be a model of urban regeneration.

“We envisioned to build a state-of-the-art office tower using the highest standards in design, performance, and sustainability… We hope that with NEX Tower, we can inspire others to build innovative structures that are well-attuned to today’s and tomorrow’s needs and improve the quality of life in the city,” Mr. Cuerva said during a recent press conference.

Designed by the acclaimed international architectural and engineering firm Skidmore, Owings & Merrill (SOM), NEX Tower integrates form and function and meets international standards.

Standing boldly along Ayala Avenue, Makati City with its “striking crystalline form,” NEX Tower has a very distinct shape that allows for diagonal fins that reduce solar flare and heat in the building.

The building’s green spaces show its biophilic design, aimed at creating an environment wherein the health and wellness of tenants are addressed.

“(Tenants) like that there is always green spaces inside the building, which is kind of unique,” Mr. Cuerva said.

NEX Tower has also received confirmation of its Leadership in Energy and Environmental Design (LEED) Platinum Certification by the US Green Building Council. This certification is the highest rating for environmentally responsible and sustainable design, and efficient resources management granted by the said organization.

With leasable space of 34,500 sq.m. and an occupancy rate of 72% to date, NEX Tower currently houses the headquarters of an insurance company, an auction house, and several multinationals.

From its beginnings in the 1980’s developing small- and medium-scale projects, Nova Group has made its presence around the bustling areas of Metro Manila. Co-developing with Century Properties Group, Inc., Nova Group is behind projects such as Essensa, Century City, Gramercy Residences, Azure Urban Residences, Commonwealth by Century, and Acqua Private Residences. NEX Tower is Nova Group’s first foray into the premium commercial market. — Adrian Paul B. Conoza

ICTSI inks P10-B deal for Brazil’s Libra Rio

July 23, 2019 | 12:07 am

INTERNATIONAL Container Terminal Services, Inc. (ICTSI) has completed a P10-billion deal to acquire a Brazil-based firm, which holds the concession to operate a container terminal in the Port of Rio de Janeiro.

In a disclosure to the stock exchange Monday, the Razon-led port operator said its wholly owned subsidiary ICTSI Americas B.V. inked last Friday the share purchase agreement with Boreal Empreendimentos e Participacoes S.A. (Boreal) to acquire 100% of Libra Terminal Rio S.A. (Libra Rio).

Under the deal, ICTSI will acquire 272,058,824 shares of Libra Rio, priced at 2.72 Brazilian Reais (about P37.09) per share or a total of 740 million Brazilian Reais (around P10.1 billion).

“The amount of the consideration was negotiated and determined on a ‘cash-free, debt-free’ basis through a discounted cash flow method… The purchase price will be entirely paid in cash on closing,” it said.

Libra Rio holds the concession to operate, manage and develop Terminal de Conteineres 1 (T1Rio) in Rio de Janeiro, Brazil. Boreal is a wholly owned subsidiary of the Libra Group, under which is Libra Rio.

“The Share Purchase Agreement…was executed after a public auction of Libra Rio, held on 17 July 2019 and won by ICTSI, required as part of Libra Group’s Judicial Reorganization process led by the 2^nd Special Lower Court for Business Restructuring and Insolvency in Sao Paulo, Brazil,” the company said.

“Under Brazilian bankruptcy law, ICTSI (acquired) Libra Rio as an isolated operation unit, free and clear of any liabilities or contingencies of any other entities of Libra Group,” it added.

With the acquisition, ICTSI is set to continue the concession of Libra Rio over T1Rio, which will expire on 2048.

“Transfer of the facilities to ICTSI management is expected to take place late 2019, once all conditions precedent and all required regulatory approvals have been obtained,” the listed firm said.

Once ICTSI completes the takeover of T1Rio, it will be the second terminal the Razon-led firm will operate in Brazil, the other being Suape Container Terminal at the Port of Suape.

Its footprint in Latin America also covers operations in terminals at the Port of Guayaquil in Ecuador, Port of La Plata in Buenos Aires, Argentina; Port of Manzanillo and Port of Tuxpan in Mexico; Port of Buenaventura in Colombia and Puerto Cortes in Honduras.

ICTSI booked an attributable net income of $72.4 million in the first quarter, up 77% on the back of higher operating income and lower financing charges during the period.

It is allocating $380 million for capital expenditures in 2019 to fund its acquisition of new equipment, maintenance work and expansion in Manila, Mexico and Iraq. — Denise A. Valdez

Soon, you can buy a property using tokens

July 23, 2019 | 12:07 am

START-UP real estate company C Estates Inc. is set to launch an online platform which would allow investors to purchase part of or an entire property through a platform using tokens.

Elixes F. Becislao, chief operating officer of C Estates, said the platform will allow anyone to buy and sell properties in an instant just like in a stock market. The platform is targeted to be launched by November.

“Everyone now can participate in real estate, regardless if you are a buyer or a seller, you’re a developer because this is an open platform… There will be a technology now, a marketplace wherein these parties will meet and these parties will satisfy each and everyone’s need,” he said during the media briefing in Makati City on July 15.

Founded in 2018, C Estates, Inc. developed the Tokenized Real Estate Platform, which would make real estate transactions easy and accessible for anyone.

C Estates CEO Teru Sumida conceptualized the platform, which was previously owned by Capitarise Corp., a property management and consulting company.

Tokenization is the process of protecting sensitive data by replacing it with an algorithm called token. The platform will serve as a place where people can “trade” fractions of a property, providing liquidity to property owners. This platform also incorporates blockchain technology.

“With blockchain technology, we can actually help the government itself to produce a more transparent, more secure and more efficient way of doing recordings of property documentation… it can prevent human errors, it can also make the documentation be tamper-proof,” Mr. Becislao said.

This will also lessen friction costs incurred during the traditional way of purchasing properties to 2%. A user could just sign up, be verified, and have a minimum of $100 in his account. Payments can made using credit cards, cryptocurrency and the like.

“There will be bidding… until you get the match… so regardless if physically your property is priced at say P10 million, but someone in the platform is offering you P8 million, and then somehow you agreed… That’s the true market value… (These bids) it’s not speculative because we’re talking about property, so it’s the real value itself,” he explained.

Properties to be sold in the platform are those under the Condominium Certificate of Title (CCT). The company is currently targeting foreigners, specifically Chinese, Japanese, and Korean, who are keen on buying property in the Philippines.

Mr. Becislao also noted that the company has partnered with several developers and brokers, but declined to identify them.

The company is also targeting to cater to Transfer Certificate of Title (TCT) which are properties that can only be owned by Filipino nationals, but this may take time as there are no government regulations on this yet. — Vincent Mariel P. Galang

Avengers: Endgame to beat Avatar at box office

July 23, 2019 | 12:07 am

SAN DIEGO — Marvel Studios superhero movie Avengers: Endgame will claim the top of the global box office charts by Sunday, distributor Walt Disney Co. said.

Endgame ticket sales will overtake the $2.789 billion collected worldwide by James Cameron’s 2009 science-fiction epic Avatar, Disney said in a statement released on Saturday as it presented a new slate of films to fans at San Diego Comic-Con.

Endgame, released in theaters in April, is the culmination of a story told in 22 Marvel films that have drawn crowds to cinemas for a decade.

The movie stars Robert Downey Jr., Chris Hemsworth, Scarlett Johansson and others as a group of superheroes battling the villain Thanos, played by Josh Brolin.

Marvel Studios President Kevin Feige told fans at Comic-Con that Endgame was poised to reach the box office milestone. He also said Endgame probably would eventually lose the title to Cameron’s next film.

Cameron is scheduled to release four Avatar sequels starting in December 2021. Disney this year acquired the Avatar franchise with its purchase of film and TV assets from Rupert Murdoch’s 21^st Century Fox. — Reuters

Angelina Jolie in Eternals, Mahershala Ali in Blade highlight Marvel’s star-studded slate of movies

July 23, 2019 | 12:06 am

SAN DIEGO — Walt Disney Co.’s Marvel Studios on Saturday unveiled a star-packed slate of superhero films for the next two years that includes Angelina Jolie in The Eternals, Mahershala Ali in a remake of Blade, and Natalie Portman as a female Thor.

The announcements at San Diego Comic-Con charts Marvel’s course following mega-blockbuster Avengers: Endgame, which Disney said was set to top 2009 film Avatar by Sunday as the highest-grossing movie of all time.

Ms. Jolie appeared on stage in front of 6,500 cheering fans, along with other Eternals cast members including Richard Madden, Kumail Nanjiani, and Salma Hayek. The story about a group of immortal aliens will debut in November 2020.

“I’m going to work 10 times harder,” Ms. Jolie said when asked how she would approach her role of Thena. “We all know what the task is ahead, and we know what you deserve, and so we are all going to be working very hard.

“So I am in training and thrilled,” she added.

Disney also revealed it will release Thor: Love and Thunder, the fourth Thor movie, in November 2021. Ms. Portman, who starred in earlier films as the girlfriend to Chris Hemsworth’s Thor, will take up the superhero’s hammer as a female goddess of thunder.

“It feels pretty good,” Ms. Portman said on stage. “I’ve always had a little hammer envy.”

Mr. Ali, who recently won Oscars for Moonlight and Green Book, surprised the audience by walking on stage and putting on a baseball hat with the logo for Blade, a character played on film in 1998 by Wesley Snipes. No details were given but the crowed erupted in applause.

The films will be part of Phase 4 of the Marvel Cinematic Universe (MCU) that started with 2008’s Iron Man and has generated more than $22 billion at box offices worldwide.

Other coming movies include Doctor Strange in the Multiverse of Madness, which director Scott Derrickson described as “the first scary MCU movie,” and Shang-Chi and The Legend of the Ten Rings starring Chinese actor Tony Leung, Awkwafina, and newcomer Simu Liu, who said he was just cast in the lead role on Tuesday.

Scarlett Johansson introduced an action-heavy trailer for Black Widow. In an interview, the actress said having a stand-alone film for the Avengers character was “mind-blowing.”

“I hope it adds a gritty kind of groundedness, that’s like a good punch in the gut, and a literal punch in the gut too,” she said. “We all get the crap beaten out of us!”

Marvel Studios President Kevin Feige confirmed a forthcoming Fantastic Four film and sequels to Black Panther and Captain America.

Mr. Feige also previewed Marvel series being made for the Disney+ streaming TV service that will debut in November. They include Loki, Hawkeye, and animated What If.

The stories told on Disney+ will weave into Marvel’s movie, Mr. Feige said. For example, Elizabeth Olsen’s Wanda will star in the WandaVision series and in the new Doctor Strange film.

“The same teams that work on the movies are going to be working on these mega-event limited series,” Feige said in an interview. “They are completely intertwined.” — Reuters

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