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Green and resilient structures

Those tall, roofed structures called buildings are ravenous consumers of energy. According to one study, they expend up to 40% of world energy. It is therefore imperative to make them more energy-efficient.

Green building may be the key. It is defined by the United States Environmental Protection Agency as “the practice of creating structures and using processes that are environmentally responsible and resource-efficient throughout a building’s life-cycle from siting to design, construction, operation, maintenance, renovation and deconstruction.” It may also refer to the structure itself.

Earlier this year, a study published in the Journal of Exposure Science and Environmental Epidemiology put a figure on the benefits of green buildings. And the amount is a jaw-dropping $13.3 billion.

Harvard University experts examined a subset of green-certified buildings over a 16-year period in six countries (US, China, India, Brazil, Germany and Turkey). The total energy savings from these structures came to $7.5 billion. What’s interesting is that since the subjects of the study were LEED (Leadership in Energy and Environmental Design) certified buildings, which make up one-third of the global green building stock, total benefits would even be greater worldwide.

The experts also calculated savings worth $4.4 billion in estimated public health benefits from reductions in air pollution resulting in deaths, lost days of school and more, as well as $1.4 billion in estimated climate benefits from reductions in carbon dioxide, methane and nitrous oxide.

“The energy savings of green buildings come with a massive public health benefit through associated reductions in air pollutants emitted. We developed the Co-benefits of the Built Environment (CoBE) calculator in this study as a tool that people can use for understanding the health impacts of building portfolios, investments and building strategies. The decisions we make today with regard to buildings will determine our current and future health,” Joseph G. Allen, assistant professor of Exposure Assessment Science and director of the Healthy Buildings program at the Harvard T.H. Chan School of Public Health, said in a statement.

In the same statement, John Mandyck, chief sustainability officer at United Technologies, which provided support to the study, said, “Green buildings are designed to save energy and water while promoting healthy indoor environments. Now we know the reduced environmental impact of building green is amplified with quantifiable benefits to public health and climate resilience. With this new human context, we can accelerate the green building movement globally from this groundbreaking research.”

The World Green Building Council, a global network of Green Building Councils, has compiled several ways to make a building green. One is to take an intelligent approach to energy. “Minimizing energy use in all stages of a building’s life-cycle, making new and renovated buildings more comfortable and less expensive to run, and helping building users learn to be efficient too,” the council said. Another is to safeguard water resources by exploring ways to improve waste water efficiency and management and by considering the impact of buildings and their surroundings on stormwater and drainage infrastructure.

In order to minimize waste and maximize reuse, the council recommends using fewer and more durable materials and engaging building users in reuse and recycling. For the promotion of health and well-being, some of the council’s specific suggestions are “[b]ringing fresh air inside, delivering good indoor air quality through ventilation, and avoiding materials and chemicals that create harmful or toxic emissions” and “[i]ncorporating natural light and views to ensure building users’ comfort and enjoyment of their surroundings, and reducing lighting energy needs in the process.”

Making a building green is also a matter of creating resilient and flexible structures. This means designing flexible and dynamic spaces, anticipating changes in their use over time and avoiding the need to demolish, rebuild or significantly renovate buildings to prevent them from becoming obsolete. The council also points out the need to consider all stages of a building’s life cycle. And that involves seeking to lower environmental impacts and maximizing social and economic value over a building’s whole life cycle from design, construction, operation and maintenance until renovation and eventual demolition. It also entails “[e]nsuring that embodied resources, such as the energy or water used to produce and transport the materials in the building are minimized so that buildings are truly low impact.”

Enhancing Philippine business and the economy

IHAP Awards 2018 recognizes winners

By Romsanne R. Ortiguero

Established in 1974, the Investment House Association of the Philippines (IHAP) has since promoted a better understanding of the role and functions of investment houses. Part of its objectives is to enhance their contribution to the growth of Philippine business and the economy particularly through the development of the capital market.

With the Philippines as one of the emerging markets, now more than ever, these investment houses play a significant role in advancing the country’s economic growth by continuing to provide a wide range of financial and advisory services. These include issue management and underwriting of public offering of debt and equity securities, loan syndication and financial packaging, and advisory for corporate mergers, acquisitions and restructuring, among others.

Since its founding, the nonstock, nonprofit organization’s members and fellows have grown to more than 30 already. Part of IHAP’s growth was also marked by the staging of the IHAP Awards since 2016, which aims to promote excellence and global best practices by recognizing the most noteworthy investment banking transactions and investment houses in the Philippines.

Now on its third year in collaboration with professional auditing firm KPMG R.G. Manabat & Co. (KPMG RGM&Co.) as the official tabulator, the awards throughout the years saw a remarkable increase in the number of nominations as well as investment houses that participated.

“This year, there were 47 entries from 13 investment houses. That’s a 34% jump in the number of entries and an 86% increase in the number of participants. I’d like to think that the marked improvement can be attributed to the increasingly more active industry, a vibrant capital market, and/or a positive economic outlook — any of which bode well for investment banks, business in general, and the country as a whole,” IHAP President and RCBC Capital Corp. President and Chief Executive Officer Jose Luis F. Gomez said during the 3rd IHAP Awarding ceremony held at Grand Hyatt Manila in Taguig City last April 13.

According to KPMG RGM&Co.’s Advisory Partner Mike H. Guarin, it was the Fixed Income Deal category that grew the most number in terms of nominations.

Meanwhile, this year’s Board of Judges include Securities and Exchange Commission (SEC) Commissioner Atty. Ephyro Luis. B. Amatong; Philippine Stock Exchange, Inc. (PSE) Senior Vice-President and Chief Operating Officer Roel A. Refran, Philippine Dealing System Holdings Corp. (PDS) President and Chief Executive Officer Cesar B. Crisol, Financial Executives Institute of the Philippines (FINEX) President Ma. Victoria C. Españo, Shareholders’ Association of the Philippines (SharePHIL) President Atty. Francisco Ed. Lim, and Fund Managers Association of the Philippines (FMAP) President Deanno J. Basas.

Mr. Gomez noted that the awards given serve to highlight key transactions and the investment houses that were instrumental — if not critical — in bringing about these noteworthy transactions — noteworthy for their innovativeness, social impact, and their adherence to strict codes of governance, among other things.

The Best Advisory House, Best Equity House, Best Project Finance House, and Best Investment House of the Year were all given to BDO Capital and Investment Corporation.

On the other hand, Del Monte Pacific Limited US$ Denominated Preference Shares (BDO Capital and Investment Corporation/China Bank Capital Corporation/PNB Capital and Investment Corporation/RCBC Capital Corporation) got the Best Equity Deal award.

The Best Fixed Income Deal award was conferred to AYC Finance Ltd. US$400 million Guaranteed Undated Notes (HSBC/BPI Capital Corporation/China Bank Capital Corporation).

The similar award was also given to Republic of the Philippines – Retail Treasury Bonds 20th Tranche (Development Bank of the Philippines/Land Bank of the Philippines/BDO Capital and Investment Corporation/BPI Capital Corporation/China Bank Capital Corporation/First Metro Investment Corporation/SB Capital Investment Corporation).

Republic of the Philippines – Retail Treasury Bonds 20th Tranche likewise won the Deal of the Year award.

BDO Capital and Investment Corporation and China Bank Capital Corporation both received the Best Fixed Income House award; while Divestment Petroliam Nasional Berhad (Maybank ATR Kim Eng Capital Partners, Inc.) got the Best Advisory Deal award.

Lastly, the Star Energy Geothermal (Salak-Darajat) B.V. US$1.25 billion Term Loan (BPI Capital Corporation/RCBC Capital Corporation) bagged the Best Project Finance Deal of the Year.

“We hope that these awards would serve to inspire not only investment houses but also our collateral partners in business such as external legal counsels, auditors and consultants, technical advisers, etc. to continue to promote more of these landmark transactions that help to enhance and develop our capital markets and to provide necessary funding for worthwhile endeavors that ultimately serve to improve the welfare of our people,” Mr. Gomez shared.

For his part, Mr. Guarin said: “KPMG and IHAP share a common vision: to uphold excellence in our profession and contribute to the attainment of our nation’s economic goals. Our joint collaboration in this awards has led to a solid alliance built within genuine passion to enhance our country’s competitiveness.”

Moving forward, Mr. Guarin also said that more improvements in the awards are to be expected in the years to come as they try to accommodate and make sure that it is truly representative of the entire capital market ecosystem.

Revolution Precrafted to expand in Japan

REVOLUTION Precafted Properties Philippines, Inc. has secured a contract to build 85 hotel villas in Japan, its second international deal this month as the property-technology firm continues with its overseas expansion.
In a statement over the weekend, Revolution Precrafted said the hotel villas will be located in a beachfront property on Miyako Island in Japan’s Okinawa district.
The company described Okinawa as a premiere summer destination in the country given its 100-kilometer coastal line and coral reefs. In 2017, the district welcome 9.4 million tourists, 9.1% higher than the figure recorded the year before.
Revolution Precrafted will be building villas, sized 23 to 60 square meters, looking to serve the surge in tourist arrivals in the area.
“This is only the first of many projects we intend to do in Japan,” Revolution Precrafted Chief Executive Officer Jose Roberto R. Antonio said in a statement.
Just last week, Revolution Precrafted also announced its entry into the Caribbean market, where it struck a deal with NOVO Development Ltd for at least 1,000 prefabricated units in the island nations of Trinidad and Tobago, Guyana, Jamaica, and the Bahamas. The $300-million deal forms part of its $1-billion contract with the Caribbean firm.
Prior to that, the company also bagged a $3.2-billion project in Dubai for luxury hotel villas, retail pop-ups, condominiums, and apartments for Seven Tides International. It will also be supplying home and retail structures for Malaysia’s KT Group for a mixed-use development in Yangon for $1.2 billion.
In the Philippines, the company is also supplying prefabricated structures for Batulao Artscapes in Nasugbu, Batangas for $1.1 billion and for Revolution Flavorscapes in Mexico, Pampanga for $350 million. — Arra B. Francia

April inflation seen further rising

By Melissa Luz T. Lopez
Senior Reporter
INFLATION likely accelerated further in April amid rising food and oil prices, with the impact of higher taxes and a weaker peso adding upward pressures to the cost of basic goods, according to a BusinessWorld poll.
A survey among 11 economists yielded a 4.5% median forecast for the month, which if realized will be higher than the 4.3% tallied in March and 3.2% in April 2017, using 2012 prices.
Inflation Poll
The Philippine Statistics Authority will report the latest inflation data on Friday.
Michael L. Ricafort, economist at the Rizal Commercial Banking Corp., said inflation could hover “at new five-year highs” this month given the impact of rising world crude rates; a surge in rice prices; a weaker peso-dollar exchange rate; and higher costs for cigarettes, alcohol, and sugary drinks due to tax reform.
Global oil prices hit a four-year peak this month, while short supply of cheap rice drove up prices of the staple in the market.
The peso also hovered at the P52-per-dollar level in April, leaving it as one of the worst performers when compared to other Asian currencies with year-to-date depreciation at 4.4%, Reuters reported.
ANZ Research economist Eugenia Fabon Victorino also pointed out higher electricity costs given the seasonal spike in rates during the summer as another factor to inflation.
Power distributor Manila Electric Co. announced a 22.5-centavo increase in utility rates this month due to a higher generation charge.
Inflation has averaged 3.8% as of end-March, just a tad below the 3.9% expected by the Bangko Sentral ng Pilipinas (BSP) for the full year and hovering close to breaching the 2-4% target band. Governor Nestor A. Espenilla, Jr. has said that the BSP is prepared to “take immediate and appropriate measures” to protect price and financial stability, as he finds comfort in knowing that the local economy can weather the impact of higher interest rates if needed.
Analysts expect prices to remain on an uptrend in the coming months, supporting views that it may be time for the BSP to raise borrowing rates to rein in inflation. In fact, several economists are pointing out that inflation is starting to look more broad-based given recent trends.
“A BSP rate hike in May 2018 may be prudent, as risks to inflation are clearly tilted to the upside even if we discount the impact of higher excise taxes,” said Guian Angelo S. Dumalagan, market economist at the Land Bank of the Philippines.
“While price increases in 2019 are likely to moderate, the magnitude of deceleration might be limited by factors that are likely to be more prolonged than transitory.”
The Monetary Board has kept policy rates at 2.5-3.5% last month, saying that inflation remains manageable despite being elevated. They added that current rates remain supportive of robust domestic economic activity, with indicators pointing to strong growth during the first quarter.
“We expect the Bangko Sentral ng Pilipinas to hike its policy rate by 25bp to 3.25% in Q2 to mitigate the second-round impacts of the tax reform and to curb rising inflation expectations,” global bank HSBC also said in a separate report, where it gave a 4.5% forecast for April.
In contrast, some analysts said the BSP still had some room to stay on hold.
Union Bank of the Philippines chief economist Ruben Carlo O. Asuncion said policy makers can even keep rates unchanged for the rest of 2018, with the recent upgrade from S&P Global Ratings signalling a vote of confidence.
The global debt watcher gave a “positive” outlook for the Philippines’ investment grade last week, hinting at a possible credit rating upgrade in the near term.
Angelo B. Taningco, economist at Security Bank Corp., added that first-quarter growth data due on May 10 will also affect the BSP’s policy review scheduled on the same day. Still, he added that there’s still a chance for a rate hike over the next two months.

LANDBANK eyes own bond exchange if PDS deal fails

STATE-RUN lender Land Bank of the Philippines (LANDBANK) may set up its own bond exchange if Philippine Dealing System Holdings Corp. (PDSHC) stakeholders continue to snub purchase offers.
“We are not confiscating anybody’s shares. It’s up to them to sell it to us. If they don’t want to sell it, fine… It will be very clear now who doesn’t want to develop the capital market, and who are those? Shareholders of PSE (Philippine Stock Exchange) and PDS,” Finance Secretary Carlos G. Dominguez III told reporters late Thursday at LANDBANK’s Makati headquarters.
“[T]hat is not going to stop us from doing that. There are other things we can do — we can promote the bond business ourselves. If they don’t want to sell it, we will set up the bond system. We can do it,” Mr. Dominguez added.
He said improving the capital market is part of the government’s mandate.
“I said from the very beginning: our goal is to improve the capital markets in the Philippines. It means to say, among other things, that MSMEs (micro, small, and medium enterprises) have access to loans other than bank loans so they can go into the bond market. That is our goal,” said Mr. Dominguez.
This comes after the bank sent out P360-per-share purchase offers to stakeholders of the fixed-income bourse last March 5 to April 5 to get a majority share, with only one agreeing to the proposal, according to LANDBANK President and Chief Executive Officer Alex V. Buenaventura.
The lender also launched on April 20 a second round of offers valid for one month, with the same price of P360 apiece.
Although the PSE has received an offer to sell its 20.98% stake in the PDSHC, it said that it remains keen to unify the fixed-income and equities exchanges to make capital market transactions more efficient.
Mr. Dominguez, ex-officio chairman of LANDBANK, said it would be easier to set up the bond market using the existing infrastructure of the PDSHC as it would take time to create the bank’s own system, even as the latter would cost about the same amount as its total offer for the PDSHC shares.
“That won’t stop us from developing a department or section to do the capital market to start selling bonds because we are a universal bank — we can do it,” he however noted, adding that the Development Bank of the Philippines can conduct the sale as well.
“We will start promoting a bond. We will tell our clients, you want the bonds? We will offer to package the bonds for you. We’ll sell it to insurance companies. It’s not going to be as efficient as if we were doing it through a trading system, but we can do it,” Mr. Dominguez added.
The Finance chief said he is not against the PSE-PDSHC merger, but said the implementation of such a plan has taken “so long,” since the stock exchange pledged to the Duterte government seal the deal 18 months ago.
“And apparently this has been going on for five years,” he said.
Before the merger could occur, the PSE would need exemptive relief from the Securities and Exchange Commission (SEC) rule that limits industry ownership of an exchange to 20%.
Although the Philippine Competition Commission approved the PSE-PDSHC merger last November 2017, proving the deal would have no negative impact on the public, the SEC still required the equities bourse to bring down broker ownership to less than 20% — which the PSE has failed to meet even after its stock rights offering last month.
The stock exchange’s share-purchase agreements with other PDSHC stakeholders — which would have given them 69.03% share had they secured exemptive relief from the SEC rule — also lapsed on March 31.
“We are begging them to comply with the law. Can you imagine a country begging, please follow the law? We’ll just do it ourselves,” Mr. Dominguez said.
LANDBANK currently owns 1.56% of PDS through the Bankers Association of the Philippines, which holds a cumulative 13.26% share for itself and its member-banks. — E.J.C. Tubayan

Gov’t infrastructure push to attract more investments into the country

THE PHILIPPINES could see bigger investment flows over the coming months as the government’s infrastructure push may attract more players to bet on local prospects, a central bank official said.
Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa C. Guinigundo said robust domestic economic activity, boosted further by the government’s “Build, Build, Build” initiative, places the Philippines on the radar of foreign investors looking for growth opportunities.
The upbeat momentum will likewise offset the impact of outbound flows due to rising yields in advanced economies.
“[T]he expected normalization of monetary policy both in the US and Europe that could temper capital flows to emerging markets including the Philippines,” Mr. Guinigundo said in a recent ambush interview.
“But I think the continued strength of the Philippine economy — particularly output and the government’s program towards infrastructure — would attract not only foreign direct investments but also portfolio investments to ride the tide, I think it can also provide the support for higher portfolio investments.”
Foreign portfolio investments, which are dubbed “hot money” given the ease by which these funds enter and leave the Philippines, posted a $1.132-billion net inflow in March to log a three-year high. The inflows reversed February’s $545.14-million net outflow and the $459.86-million outflows in March 2017, BSP data showed.
Foreign players betted as much as $2.469 billion last month on the back of fund-raising initiatives by corporates as well as by the Philippine government’s maiden issuance of renminbi-denominated bonds to global investors.
March investments brought the three-month tally to a $749.43 million in net retained capital, reversing the $567.53 million which were plucked out from the Philippines during the same period in 2017.
The central bank expects $900 million in net outflows this year, wider than the $205.03 million in withdrawn capital in 2017.
Economic managers of the Duterte administration kept their 7-8% annual growth forecast for the Philippine economy this year until 2022, supported by stronger revenue collections and increased public spending.
In particular, the government is eyeing to spend P1.068 trillion on public infrastructure this year, in keeping with President Rodrigo R. Duterte’s P8-trillion Build, Build, Build program. — Melissa Luz T. Lopez

Mayday on May Day? Trump steel tariff deadline looms

BRUSSELS — While more than 100 countries take a day off for May Day, US President Donald Trump will spend next Tuesday deciding whether to extend a largely US-China trade standoff into a more global dispute.
In a week featuring a Federal Reserve monetary policy meeting, US monthly jobs data and first estimates on euro zone inflation and economic growth, Trump’s decision on metal tariffs may prove to the be biggest market mover.
The United States set import tariffs of 25% on steel and 10% on aluminum a month ago, but granted temporary exemptions to the European Union, NAFTA partners Canada and Mexico, as well as Argentina, Brazil, Australia and South Korea.
Those exemptions expire on May 1.
Korea secured a permanent exemption for steel within days of agreeing to a revision of its trade pact with the United States. Canada and Mexico may rely on advances in talks on North American Free Trade Agreement (NAFTA) for an extension.
Continued exemptions for the other countries, and notably the European Union, remain in doubt.
French President Emmanuel Macron and German Chancellor Angela Merkel were meeting Trump in Washington as part of EU lobbying effort in the past week, but German officials played down the chances of a breakthrough before Merkel’s Friday visit.
“From today’s point of view, we must reckon that the tariffs will come on May 1,” one official said.
The European Commission, which oversees trade policy for the 28-member bloc, has insisted the United States grant it a permanent exemption without conditions.
White House economic adviser Larry Kudlow said on Thursday that Trump wanted concessions on automobiles, for which import duties are higher into Europe than into the United States.
Behind the scenes, sources say the Commission has offered “scoping discussions” on the possibility of opening free trade talks, an offer rejected by Washington.
An alternative suggested would be for Europe to raise an import quota for US beef granted in 2009, that Washington has sought to review. However, the Commission said on Friday this was a long-standing matter with no link to other trade issues.
TIT-FOR-TAT: FROM STEEL TO CARS?
If the EU is subject to tariffs on the 6.4 billion euros ($7.7 billion) of steel and aluminum it exports to the United States, it has pledged to respond with its own duties on 2.8 billion euros of US exports of products from make-up to motor-bikes.
Raoul Leering, international trade analyst at ING, said the US strategy to push for concessions had worked with Korea and partly with China, but the EU’s refusal to make an offer did make some economic sense.
US demand for EU products accounted for 2.6% of EU GDP, while EU demand for US products was 2.2% of US GDP.
“Unlike China, South Korea, Canada or Mexico, the EU is in a balanced situation with the US… So if there is a trade war with comparable tariffs on both sides, the US will lose almost as much as the EU will. That could explain why the EU is taking a firmer stance,” Leering said.
The risk economists highlight is of further escalation from Trump, who has talked about slapping tariffs on EU cars.
Citi economists point out that basic metal manufacturing is only 0.5% of the EU’s total gross value added, but duties on cars would be altogether different, with car production accounting for 2-3% of German GDP and a fifth of the euro zone’s goods trade surplus with the US.
ECONOMIC SLOWDOWN
Aside from Trump’s headline-grabbing decision, there is plenty of data in the coming days. The US Federal Reserve’s monetary policy setting committee also meet on May 1-2, albeit with no further rate hikes expected.
US monthly jobs data will be published on Friday, with non-farm payrolls seen rebounding to a gain of 198,000 in April after the figure dropped to a six-month low in March.
“Inclement weather is a drag on payrolls, but nonetheless we should have certain rebound above the threshold of some 100,000 you need to absorb new entrants to the labour market,” said Bernd Weidensteiner, US economy specialist at Commerzbank.
A high figure, also on wage growth, would add to the sense that the economy is strong.
Across the Atlantic, a first estimate of euro zone economic output will show if recently disappointing data, including sentiment indicators and industrial output, have caused a significant slowdown at the start of 2018.
The average forecast in a Reuters poll of economists is for 0.4% quarter-on-quarter growth, from 0.6% in the fourth quarter of 2017.
The US and British economies both slowed in the first three months of the year, although the British by more than expected, with snow only partly to blame and the US by less.
A first estimate of euro zone inflation is also due, on Thursday, one of two figures on prices before a meeting of the European Central Bank in June that is expected to determine the future policy path. — Reuters

The versatility of time

WHEN MOVEMENT is bound by time, so is the chance to do (and wear) something bold and brave.

In 2005, TW Steel CEO Jordy Cobelens and his father Ton, saw an opportunity to start a business selling oversized watches. They took the risk and produced the first four Canteen-styled models and began selling these to friends and relatives. Things took off and at present, TW Steel has 5,000 retail outlets in over 100 countries and has sponsored motorsports such as Formula One and the Race of Champions.

This year, the Dutch watch brand launches the #haveitalltwsteel campaign which aims to promote TW Steel watches as having specific designs that fit all occasions, match and keep up with any lifestyle, and make bold sophisticated statements.

In line with the new campaign, the brand has released 14 new models — seven Sophisticated Mavericks, four Son of Time Special Editions, two Race of Champion Special Editions, and one Red Bull Holden Racing Team Special Edition.

“Essentially, they’re not very different. They have the same power. They have the same attitude. However, what we are doing more and more is we are trying to infuse different things together,” TW Steel global marketing director Auke Possel told BusinessWorld of the new models at a media event held at Corregidor last week.

Taking inspiration from the Son of Time masterpiece, TW Steel introduces seven Sophisticated Maverick timepieces — MS73, MS84, MS93, MS104, MS114, MB33, and MS1124. Available in 45mm and 48mm, the models are designed with sapphire coated crystals, engine piston-like pushers, “fuel cap” crowns, and 10 ATM water resistance.

The 45-mm and 48-mm Son of Time Special Editions are what Mr. Possen describes as a design merge with Son of Time custom bikes. Made of high grade 316L steel, sandblasted PDV black coating, with either black Milanese and Italian leather straps, the models are the Chronos Joyride MST3, Aeon MST4, Desperado MST13, and Son of Time MST14.

The Motorsport models — the 45-mm TW965 and 48mm TW966 Race of Champions, designed with three hands, the date display, and black textile straps with orange stitching; and the 48-mm Red Bull Holding Race Team TW967 with PVD blue coated accents and a blue textile strap — complete the new special edition releases.

With the evolving trends in watch designs and the advent of the smartwatch, TW Steel remains confident on its strength in oversized watches, “We like to think that we make our own trends. In 2005, we set the trend. We were the first ones to do oversized watches,” Mr. Possel said, noting that the brand veers away from doing minimalist designs, exploring changes in size, and adding smartwatch features. “We believe in ourselves, and we like to do what we keep on doing,” he said.

“We’re a bold brand that shows the watch as a statement. We are not the most practical watch since [it’s] very hard to tuck under the sleeve, but that’s exactly what we want,” Mr. Possel added.

Asked what makes a watch timeless, Mr. Possel noted that it was the balanced combination of design and technology. “[I think] it has to do with how a watch is produced and designed. I think if it is built on a philosophy or a certain vision, people will see that. If you allow yourself to be daring, I think it has a good chance of becoming a timeless watch.” — Michelle Anne P. Soliman

SMDC to expand condominium project in China

By Arra B. Francia, Reporter
SM Development Corp. (SMDC) looks to launch three residential towers in its two-hectare property in Chengdu, China by August, citing the demand for such a project in the area.
The residential arm of property giant SM Prime Holdings, Inc. has already launched two towers in Chengdu last year. The robust sales take-up allowed SMDC to sell out the two towers just a day after they were launched.
“We expect the same for the one we’ll be launching in August because the demand, especially the area we’ve selected, malakas ang demand,” SMDC Executive Vice-President Jose Mari H. Banzon told reporters before SM Prime’s annual stockholders’ meeting in Pasay City last week.
Mr. Banzon said the remaining two towers will be launched in 2019.
The residential development is located near the SM group’s shopping mall in Chengdu, which was opened in 2006.
Aside from Chengdu province, Mr. Banzon said the company also has some remaining land in Fujian province that may be developed into two or three projects. The SMDC executive said they are still considering plans for the project.
“We have about two or three, pero matagal pa. It will take a while,” Mr. Banzon said.
FEDERAL LAND JV
Here in the Philippines, SMDC expects to launch its joint venture with Federal Land, Inc. within the year. The property arm of tycoon George S.K. Ty has teamed up with the Sy-led developer for a 3,400-square meter property along Ayala Avenue. This will be SMDC’s first venture into the high-end residential market.
“This is a different class and design… Yung international quality with designers ay na-foster, cut above the rest… This is the last available piece of land for residential (projects) in Ayala, so we’re very excited,” Mr. Banzon said.
SMDC will be launching 15,000 residential units this year, with a sales value of around P45 billion based on an average selling price of P3 million each. The company is banking on the influx of demand from Chinese buyers in the market today, noting that 30% of its reservation sales for the first quarter of 2018 were Chinese buyers.
The higher demand has also prompted the company to increase its prices by 10% in 2017, particularly in the Bay Area in Pasay City, according to Mr. Banzon.
SM Prime Chairman Henry T. Sy, Jr. earlier said that they would have to increase their land bank in the area to serve the surge in demand.
Revenues of SMDC rose by 18% to P30 billion in 2017, while operating income went up 24% to P8.9 billion. The company was able to sell 17,259 units for the year, 4% higher than the 16,670 it sold the year before. Reservation sales on the other hand jumped 21% to P57.8 billion.
SMDC’s performance helped boost SM Prime’s earnings last year, as the latter booked a 16% increase in net income to P27.6 billion. Consolidated revenues climbed 14% to P90.9 billion for the year.

Shoes that connect with your inner demon

WHILE WE groom our hair and faces according to how we think the world should see us, far too often, our choices in footwear betray who we really are. The legendary shoe designer Roger Vivier once said: “To wear dreams on one’s feet is to begin to give a reality to one’s dreams.” A Marikina-based shoe designer taps into one’s imagination and begins to allow his customers to live a life that they really want.

Joco Comendador once worked as a banker, despite the fact that his college thesis in De La Salle — College of Saint Benilde was about exporting handcrafted Filipino footwear (made by himself, of course) abroad. While he worked his nine to five, Mr. Comendador would design shoes for fashion shoots. In 2016, he finally decided to open Joco Comendador: Footwear + Art.

Mr. Comendador makes men’s shoes for the “Work hard, party harder” club. Slip into a pair inspired by demons, or Sailor Soldiers from Sailor Moon, or even Pokemon. His Pikachu-inspired mules, for example, are made in yellow calfskin, incorporating the cartoon character’s red cheeks in suede. His Sailor Soldiers’ line, meanwhile, takes the color of a character’s skirt, and perforates the shoe with the character’s astronomical symbol. His series inspired by demons, meanwhile, have aggressive soles in red and black, and studded with gold spikes and embroidery to better reflect the demon within. Satan, for example, the Prince of Darkness, was executed with crocodile-embossed leather, and spiked with golden studs and skulls.

Of course, he makes classic lines as well, because you can’t break the rules when you don’t know them. Think black patent men’s opera pumps with black grosgrain bows, or else monkstaps done in burnished leather, or maybe a classic pair of oxfords with the vamps slightly modified.

During an interview with BusinessWorld, he said that he’s inspired by what he reads and what he watches. To translate his imagination into footwear, into something real and tangible, he said: “I imagine a character as a person… I imagine [that] person walking in those shoes in everyday life.”

Of course, he makes sure they’re wearable by a normal person first, as he doesn’t want the pair to look too costume-y, “But at the same time, it still has [to have] a reference.”

“If you see a man who wears a really good shoe, then you should marry that man,” he says to his gay and girl friends.

The patriarchy has cheated men when it comes to the sartorial choices they make. Because of its expectations of what a man should look like, men are prevented from playing the game that the system has decreed to be only for women: fashion. While women have handbags and shoes that can reference certain eras or significant moments in history, men are told to choose between messengers, briefcases, or backpacks; oxfords, loafers, or sneakers. Another inspiration for Mr. Comendador come as a surprise even to him: stolid family men with desires not to toe the line with avant-garde footwear. “I got inspired and I went to pursue that market,” said Mr. Comendador.

While womenswear offers more chances for creativity, he says that it’s convenient for him to design men’s shoes because he gets to test them.

And apparently, there’s more money there. While women have several outlets for shoemakers to create their dreams for them, men rarely have that chance. “Women have a lot of [other] options,” he said. “Men are more inclined to [buy] custom-made footwear… they love it when it’s handcrafted for them.” Mr. Comendador’s pairs can usually fetch prices from P6,000 to P16,000.

A problem Mr. Comendador sees in the shoe industry, based on his experience, is the lack of support from the government to promote shoemakers like him and the artisans under his wing. There’s also a certain lack of materials, as Mr. Comendador says that based on his experience, local leathers crack and break easily. “If you want to target the luxury market, you really have to import.”

Since many local shoe brands have taken to having the shoes designed here and made in countries like China where the labor may be cheaper, few people who actually know how to make good-quality shoes are left who do work in the Philippines. As an example, Mr. Comendador says that his shoemakers are well into middle-age, and will soon become seniors. Right now, he’s training two young people though. “Baka matuto din sila (they might learn),” he said.

Mr. Comendador also holds workshops for people to make their own pairs, which, while an idea that sounds simple enough, stems from multiple reasons. One, it’s his answer to people who want him to go into mass-production. Instead people actually pay him to teach them how to make shoes, which they take home after the workshop. Secondly, it’s his answer to fast fashion: to allow a customer to reconnect with the production process. “Every fashion piece undergoes a long process,” he said. “I want people to experience what it’s like to make a shoe. We’re so enamored with fast fashion: buy this, buy that.” — Joseph L. Garcia

Mr. Comendador can be reached through Instagram at @jococomendador, and through Facebook at fb.com/jococomendador.

SunAsia gets go-signal to build solar power plant

THE ENERGY Regulatory Commission (ERC) has approved “with modification” the electricity supply agreement between Dagupan Electric Corp. and solar farm developer SunAsia Energy, Inc., which is planning to build a 20-megawatt peak (MWp) solar power plant in Pangasinan.
In their joint application with the ERC, the contracting parties said they had entered into the supply agreement to address the increasing power supply requirements of the distribution utility and to reduce its exposure to the wholesale electricity spot market, where prices may not always be stable.
Under the electricity supply agreement (ESA), SunAsia will install, construct and operate the embedded solar power plant in Brgy. Efre, Santa Barbara, Pangasinan. The ESA will be implemented in two phases at 10-MWp each stage.
In its decision, the ERC said the applicable fee to be collected from consumers under the ESA is P4.58 per kilowatt-hour (kWh) as capacity recovery fee (CRF) and P2 per kWh for operations and maintenance (O&M) fee, which is subject to price adjustment.
“In the absence of a capital cost component being financed by foreign denominated loans, the Capital Fee should be fixed for the duration of the life of the plant. Thus, the CRF should not be subjected to any price adjustment,” the ERC said.
The regulator denied the plea of the contracting parties for an automatic renewable clause for the ESA. The contract will be in force for 25 years from the actual date of delivery unless extended or renewed by the parties.
Dagupan Electric holds the congressional franchise to operate electric light and power services in the cities and municipalities of Dagupan, Calasiao, San Fabian, Sta. Barbara, San Jacinto, Manaoag, Barangay Cruz and Bolingit of San Carlos City, all in the province of Pangasinan.
The distribution utility currently sources around 83% of its power requirement from GNPower Mariveles Coal Plant Ltd. Co. and SN Aboitiz Power-Benguet, Inc. for a total of 40 MW.
Dagupan Electric projects power demand for this year to reach 68.673 MW as it expects demand to grow an average of 4% per year between 2016 and 2024, when it forecast demand to hit 86.893 MW.
SunAsia estimated the project to cost P816.47 million, or P81.65 million per megawatt. The bulk of the cost is allocated for the engineering, procurement and construction (EPC) contract at P611 million. The company identified the EPC contractor of the solar farm as Juwi Renewable Energies Private Ltd. — Victor V. Saulon

Terra Verde aims to inspire children to become farmers

By Carmencita A. Carillo
Correspondent
MARAGONDON, CAVITE — I want to be a farmer when I grow up.
This is what the owners of Terra Verde EcoFarm here would like to hear as they cultivate their farm tourism site as a venue for inspiring the young to engage in agriculture.
“The value proposition now is that our children can be doctors, teachers, information technology professionals, and farmers,” Terra Verde Ecofarm President Erickson B. Atanacio said in a recent interview.
“They can get any degree they want but we should make them realize that they can also become farmers,” added Mr. Atanacio, a former aerospace engineer.
The farm has been under development for the past 11 years, since it was purchased by the family in 2007, initially as a private farm.
“We are redefining to our children the definition of the rich, not the one who has the most but one who needs the least. We call our children free-range farm kids, because here at the farm they can explore and engage,” Mr. Atanacio said.
“Most city-bred kids will run away when they see bugs, but our free-range kids go where the bugs are because they learn about the species, what they do and what they eat up close and personal, not just in the laboratory setting,” he said.
Terra Verde Ecofarm is accredited by the Department of Tourism as a farm tourism destination, and also serves as an Extension Service Provider (ESP) of the Agricultural Training Institute (ATI).
Republic Act 10816, the Farm Tourism Law, was enacted in 2016 to encourage people to recognize the important of agriculture and at the same time improve the livelihood of Filipino farmers.
As an ESP, it regularly hosts farmers, nongovernment organizations and other groups that want to learn about integrated, diversified farming systems.
Dr. Maria Celeste H. Cadiz, program head of the Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA) Knowledge Management Department, said the current average age of Filipino farmers is 57, and the country needs to encourage the young generation to venture into agriculture.
“There are many ways to promote farm tourism and you need not own vast tracts of land to be able to establish a farm tourism destination,” Ms. Cadiz said in an interview.
Terra Verde EcoFarm, for example, started with just one hectare and has now grown to 32 hectares.
Mr. Atanacio said even backyard farmers can engage in agri-tourism.
“We teach farmers to raise pigs without the smell, no flies and no water polluting the rivers, so they can even do this in their backyards without the neighbors complaining,” he said, “To expand, they can start encouraging their neighbors to raise their own pigs as well following our methods and start a social enterprise and make it community agriculture.”
Understanding that urban children might not be eager to visit a farm, Mr. Atanacio said the Ecofarm has put in modern attractions such as a race track for remote control (RC) car racing, and an area for RC planes.
After RC racing, he said, the children could then take the farm tour, which includes meeting an Albino carabao, wild boars, ostriches, and other animals.
There are also facilities for an overnight stay, with stargazing and campfires offered as evening activities.
“We are among the few areas where you can still see fireflies. They are disappearing because of light pollution,” he said.

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