Facebook Instagram Linkedin X Youtube
Home Blog Page 9781

REITs, outsourcing firms seen to drive property market growth

By Denise A. Valdez
Reporter

THE Philippine real estate industry is seen to keep growing this year, driven by the kickoff of real estate investment trusts (REITs), expanding business process outsourcing (BPO) industry and strong consumer demand.

In a statement over the weekend, real estate consultancy firm Santos Knight Frank said several factors may offset the decline in real estate growth brought by the coronavirus disease 2019 (COVID-19) outbreak.

It said 2020 is set to be the “year for REITs,” following the regulator’s relaxation of rules to attract REIT offers from property developers. This includes the reduction of the minimum public float to 33% and the value-added tax exemption when transferring properties to a REIT vehicle.

So far, Ayala Land, Inc. has applied to do an offer of up to 478.64 million shares in office properties in Makati City, which will raise up to P1.36 billion for the company.

“More property companies have expressed interest in REITs after regulators unveiled the revised rules in January. Property giant Ayala Land recently filed its application… while DoubleDragon Properties Corp. is looking at raising P11 billion annually over a six-year period via REITs,” Santos Knight Frank said.

Looking at more mature REIT markets in Asia Pacific such as Australia, Hong Kong, Japan and Singapore, the consultancy firm said these countries have recorded higher dividend yields from REITs compared to listed property companies, which paints a rosy picture for the potential of Philippine REITs as well.

“Santos Knight Frank believes that REITs will unlock a number of opportunities in the property market, such as greater access to real estate investment and revitalization of capital markets,” it said.

Shares in listed property firms have seen a volatile movement in the local bourse, in line with the volatility of global equities due to COVID-19.

But with the launch of REITs, Santos Knight Frank said this opens an opportunity for more participants in the property market.

“REITs have the power to sustain long-term growth for the Philippine economy through investments,” Santos Knight Frank Chairman and Chief Executive Officer Rick M. Santos said in the statement.

“We anticipate that REITs will drive an increase in acquisition, consolidation, and property development activities across the Philippines in the coming years. New capital raised by the developers through REITs will enable expansion of the real estate sector not only in Metro Manila but also in the provinces…,” Santos Knight Frank Associate Director for Investment & Capital Markets Kash Salvador added.

Aside from REITs, the real estate sector is also seeing tailwinds from the continuous growth of the BPO sector. With the government’s moratorium on new economic zones in Metro Manila, Santos Knight Frank said BPOs may start moving to the countryside, driven by the sustained high demand from locators.

“From 1.23 million direct hires as of 2018, the entire Philippine BPO industry is expected to support up to 1.57 million by 2022. Santos Knight Frank estimates that the growth of 7% CAGR would, in total, require an estimated office space of 1.2 million square meters for the 260,000 new jobs generated,” it said.

The co-working trend is another element that may keep the real estate sector growing, as the consultancy firm said high demand from freelancers, start-ups, entrepreneurs and BPOs continue attracting new co-working space brands into the country.

The rise of sustainable buildings is also a growth driver for the sector, as Santos Knight Frank said there is a 12.5% higher lease rate in buildings that are Leadership in Energy and Environmental Design (LEED)-certified compared to those that aren’t.

“As the real industry becomes increasingly aware of its environmental impact, more property owners are turning to green design, solutions, and systems… LEED-certified buildings not only carry environmental benefits, but they also position properties to the premium side,” it said.

Industrial and logistics sectors are likewise seen to further expand this year, fueled by the demand from the e-commerce market. “The areas of Calabarzon and the corridor (of expressways) in North Luzon are prime spots for logistics and industrial real estate to grow. These would be the next hubs for distribution centers and warehouses,” Mr. Salvador said.

In terms of residential spaces, Manila is likely to sustain its dominance, as the consultancy firm said there are three projects scheduled to launch in the first quarter of 2020 alone: The Velaris Residences, Sonora Garden Residences and Avida Towers Parklinks.

“The growth in the prime residential market in Manila is driven by a tight supply of luxury and high-end properties, increasing number of Filipino ultra-high net worth individuals, and demand from foreign buyers,” Santos Knight Frank said.

Co-living spaces are likewise going to push the growth of real estate, as big property developers continue investing in this segment.

“The beginning of 2020 has been marked by a series of unexpected events that continue to affect the global economy. Despite the impact of COVID-19 and downturn in international stock markets, the Philippine real estate industry continues to have reasons to be optimistic,” it said.

Asia airports face $3-billion revenue loss in first quarter

AIR TRAFFIC in the Asia Pacific is set to plunge 24% in the first three months of this year because of the coronavirus’s impact on travel, erasing $3 billion in revenue for the region’s airports, a regional industry group said.

“Unlike airlines, who can choose to cancel flights or relocate their aircraft to other markets to reduce operating costs, airport operators manage immovable assets that cannot be closed down,” Stefano Baronci, director at Airports Council International Asia Pacific, said in a statement Monday. “They are faced with immediate cash flow pressures with limited ability to reduce fixed costs and few resources to fund capacity expansion efforts.”

Airlines across the world are slashing capacity, asking staff to take unpaid leave and grounding jets as demand sinks because of concern about the coronavirus, which has killed more than 3,800 people and infected over 109,000. Publicly listed airport service providers in Asia have slumped more than 12% this year, data compiled by Bloomberg show, while the International Air Transport Association warned of revenue losses of as much as $113 billion for airlines globally in 2020.

The slump in travel also means reduced landing and parking fees that airports charge airlines, ACI said. The gateways are facing lower numbers of Chinese travelers, the world’s biggest and highest-spending outbound tour group, according to ACI.

The group also cautioned against IATA’s request for regulators to suspend rules that require carriers to operate a certain number of flights from allocated slots or lose them. Such a move would give airlines the freedom to cancel flights at congested airports not necessarily linked to the coronavirus outbreak, hurting local economies, it said. — Bloomberg

Balintawak condo set for turnover by Oct. 2021

DMCI PROJECT Developers, Inc. is on track to turn over units at The Celandine to homeowners by October 2021.

Construction of the 47-storey building has reached the 26th floor as of February, said the company which operates under the DMCI Homes brand.

The Celandine is expected to be topped off by September.

“The company’s Construction, Design and Engineering, and Quality Management departments are working hand in hand to ensure that the company’s 102-point inspection system initiative is strictly implemented in the construction of The Celandine,” DMCI said.

The quality checklist covers the inspection of the soil quality, compliance to standard building requirements, and testing of the concrete’s strength. It also includes a close examination of the physical measurements of the layout, types of materials to be used, as well as the plumbing, sanitary, electrical, and mechanical systems.

The Celandine is located along A.Bonifacio Avenue, Balintawak, Quezon City. It is expected to benefit once the Skyway Stage 3 extension begins operations. The Skyway Stage 3 starts from A. Bonifacio Avenue to Gil Puyat Avenue (Buendia) in Makati City.

Among The Celandine’s amenities are a linear park and themed gardens, roof garden, open lawn with grill pit areas, jogging trail, playground, swimming pool complex, basketball court, gazebo, and fitness gym.

Indoor amenities include lounge areas, audiovisual room, function room, game area and sky lounge.

DMCI Homes is a Quadruple A real estate company behind resort-inspired communities in Mega Manila, Baguio, Boracay and Davao City.

Even virtual goods from China are taking a hit from coronavirus

THE coronavirus epidemic in China cast the production of the world’s electronics into disarray. What’s less well known is that it also disrupted the global supply of digital goods for games.

Beyond iPhones, laptops and consoles, China is also the largest production base for digital art in mobile, PC, and console games. Global developers from Activision Blizzard Inc. to Ubisoft Entertainment rely on third-party studios in the country for a huge chunk of their art, enticed by the same cheap-but-capable labor force that draws manufacturing orders from Apple Inc. and Nike Inc.

Art suppliers across gaming hubs in Shanghai and Chengdu are failing to deliver costumes, armor, and other digital assets on time, because designers were barred from studios by strict quarantine rules — a major impediment in a line of work that requires stringent data security and networks of high-powered workstations. That’s forced gaming companies to reduce or cancel orders, according to people inside the industry, and scout for alternatives in Southeast Asia and Europe to take up the slack.

Jefferies analysts led by Ken Rumph estimate that as much as 50% of art creation in Western games is done in China, either by local outposts of major developers like Ubisoft and Electronic Arts Inc. or by outsourcing. “If delays are extensive, we would expect a growing list of game delays,” they wrote in a February note.

While the full scale of this disruption is yet to be defined, the games industry is already taking hits from its China reliance. The American developer of popular sci-fi role-playing title The Outer Worlds said in February it had to delay the release of the Nintendo Switch version — after the China-based studio it hired to adapt the game paused operations during the virus outbreak.

“We redid all the planning for all our projects,” said Philippe Angely, a senior executive with Virtuos Ltd., whose China team is handling The Outer Worlds’ Switch adaptation. With 1,200 developers across the cities of Shanghai, Chengdu and Xi’an, Virtuos estimates an average of a two-week delay on projects, he said, and a halving of February revenue as a result.

Virtuos, whose clients include Ubisoft, Square Enix Holdings Co., and Tencent Holdings Ltd.’s Riot Games, has only just gotten back to full capacity in the past few days, but it remains hampered by local restrictions. Its 600 staffers in Chengdu, for instance, have to rotate across two eight-hour shifts to comply with government-imposed limits on the number of people in indoor areas.

The online games industry has been among the few beneficiaries of the coronavirus outbreak, as time and money spent on games have surged with millions of people confined to their homes. But the tale is different from the supply side.

“Developers and publishers can make revenue as long as they have games running. For outsourcing companies, we have to work every day so clients will send money to our bank accounts,” said Zhang Jian, executive vice-president with Chengdu-based Sheer, which has worked with clients including Tencent, NetEase Inc. and Ubisoft.

To prevent infection and keep business running at the same time, Sheer has relocated half of its 300 developers to a new office floor the company just rented, Zhang said. Employees are required to sit at every other desk and wear face masks throughout the day. Yet about half a dozen of his company’s projects — both Chinese and foreign — have been scaled back or canceled entirely. The studio, which provides services from concept art to 3-D environment creation and character animation, won’t be able to take new orders until the end of March, Zhang said.

“The impact on the cash flow will last for the full year,” he said. “We are not in big danger, but we’ll feel a lot safer if we have money on the books.”

Unlike supply chains for physical goods, migrating a digital one away from China can be done relatively swiftly. Last year, Ubisoft opened a new studio in Vietnam while Sony unveiled plans to build a Malaysia outpost to make games for its PlayStation consoles. Such moves help global companies tap even cheaper local talent and reduce the risk of regional disruptions like the coronavirus, said Darang S. Candra, a Jakarta-based analyst with game researcher Niko Partners.

In Southeast Asia, Vietnam’s Appota, Malaysia’s Streamline Studios and Thailand’s Asiasoft are examples of studios capable of potentially taking orders away from China, he added.

“For games that are targeting the Chinese market, we expect no exodus to happen any time soon,” Candra said. “Nevertheless, some outsourcing work might move outside of China if the situation does not recover soon.” — Bloomberg

Gov’t makes full award of T-bills as rates mostly drop on demand

THE GOVERNMENT fully awarded the P20 billion in Treasury bills (T-bills) it auctioned off on Monday as rates mostly continue to decline on expectations of monetary easing and investors’ flight to safe havens due to the coronavirus disease 2019 (COVID-19) outbreak.

The Bureau of the Treasury (BTr) accepted bids worth P20 billion as planned for the T-bills on offer yesterday as the offer was almost thrice oversubscribed, with total tenders reaching P53 billion

Broken down, the Treasury made a full P6-billion award of the 91-day T-bills out of total bids worth P10.15 billion. The three-month papers fetched an average rate of 3.024%, inching up by one basis point (bp) from the 3.013% seen in the auction last week.

The BTr raised another P6 billion as programmed via the 182-day T-bills from bids worth P12.193 billion. The average rate for the six-month papers inched down 1.2 bps to 3.312% against the 3.324% quoted previously.

For the 364-day papers, the government also made a full award of its P8-billion offer as total tenders amounted to P30.68 billion. The one-year securities fetched an average rate of 3.588%, down by 9.6 bps versus 3.684% seen in the previous offering.

At the secondary market on Monday, the 91-, 182- and 364-day T-bills fetched rates of 3.062%, 3.364% and 3.713%, respectively.

Following the auction, National Treasurer Rosalia V. de Leon said they made a full award of the T-bill offer yesterday amid mostly lower rates, which were driven by market expectations of a 25-bp cut by the Bangko Sentral ng Pilipinas’ (BSP) Monetary Board at its rate-setting meeting on March 19.

“For this auction…coming from the liquidity onshore, we have very significant participation particularly on the one-year tenor given that there would be a yield pickup coming from the short end… We also saw that rates continue to trend downward given the expectations of another rate cut by the BSP coming from the emergency cut made by the Fed (US Federal Reserve) last week,” Ms. De Leon told reporters on Monday.

The central bank’s policy-setting Monetary Board (MB) already cut key rates by 25 bps at its Feb. 6 meeting, bringing the yields on the BSP’s reverse repurchase, overnight deposit and lending facilities to 3.75%, 3.25% and 4.25%, respectively.

This means the BSP has already unwound 100 bps from the 175 bps worth of rate hikes done in 2018 to quell multi-year high inflation.

BSP Governor Benjamin E. Diokno said last week another 25-bp cut is on the table this year, adding that they will assess anew the impact of the virus on the economy during the MB’s March 19 meeting. He earlier said the central bank is not ruling out cuts worth 50 to 75 bps this year.

Sought for comment, a bond trader attributed the lower T-bill rates to investors’ flight to safer assets like government securities as COVID-19 continues to spread and its potential impact on the economy seen to rise.

“Demand (is still robust) since investors prefer securities with shorter tenor amid coronavirus outbreak, especially here in the Philippines. For the next auction, we feel that this will continue to decline since investors continue to prefer safer securities across all tenors,” the trader said over telephone.

Ms. De Leon and the trader both said the downtrend will continue as the damaging impact of the virus persists, which can also be observed in US Treasury market where rates have declined to less than one-percent levels across all tenors. The 10-year and 30-year Treasuries plunged to 0.35% and 0.72%, respectively, on Monday, according to Bloomberg’s website.

Ms. De Leon added that the lower rates were also driven by plunging oil prices in the global market. The Brent crude declined 26% to $33.46 per barrel on Monday, “set for their biggest one-day decline in 29 years,” according to Reuters.

Reports attributed the decline to the “price war” that started in the global market after Saudi Arabia, one of the largest oil-producing country, slashed its official selling prices and announced plans to increase production next month, after the Organization of the Petroleum Exporting Countries failed to come up with a consensus on proposed output cut.

Demand for oil has been declining recently on subdued economic activity due to travel bans and other precautionary measures imposed by several countries to contain the spread of COVID-19. This drove oil prices to drop.

The Treasury has set a P420-billion local borrowing program this quarter, broken down into P240 billion in T-bills and P180 billion via Treasury bonds.

The government plans to raise P1.4 trillion this year from local and foreign lenders to plug its budget deficit, which is expected to widen to as much as 3.2% of gross domestic product. — Beatrice M. Laforga with Reuters

Cable TV association wants no multiple channels for ABS-CBN

FEDERATION of the International Cable TV and Telecommunications Association of the Philippines (FICTAP) said ABS-CBN Corp. should not be allowed to operate multiple channels in one area as it could kill small cable television providers in the country.

FICTAP, a group of micro, small and medium cable TV and internet operators, urged Congress on Monday to carefully review the bills filed in the 18th Congress seeking to renew the franchise of the embattled media giant ABS-CBN.

FICTAP Chairperson Estrellita Juliano-Tamano said in a briefing in Quezon City that the House Bill No. 4997 filed in 2014 used the terms “frequencies” and “channels” which could mean allowing the Lopez-led company to operate more than one channel in an area.

She said lawmakers should ensure that the frequencies will not be monopolized by giant companies like ABS-CBN.

“Ang kanilang application ay renewal lang. Meaning, kung ano ‘yung dating nakasaad sa kanilang dating prangkisa ay wala kang dapat idagdag,” Ms. Tamano said.

(Their application is for franchise renewal, meaning the provisions under the previous franchise should be retained without any addition.)

She noted that several bills had been filed in both houses of Congress for the extension of ABS-CBN’s franchise.

“Gusto ko po sanang malaman sa kanila kung iyon pong lumang franchise ng ABS-CBN ay katulad din doon sa bago nilang na-file o kung meron silang bagong idinagdag o ibiniwas sapagkat maliwanag na ang application ng ABS-CBN ay para lang sa iisang channel,” she said.

(I want to know from them if the previous franchise of ABS-CBN is the same as the newly filed one, or if they added or removed some provisions because it’s clear that the application of ABS-CBN is for only one channel.)

She said the organization is worried about the possibility that legislators would allow ABS-CBN to operate multiple channels.

“Nag–iinvest kami sa fiber optics at sa pagkabit sa mga bahay-bahay, pero sila gagamit sila ng frequencies na libre. Kami nagbabayad ng aming infrastructure, so magkakaroon ng monopoly,” Ms. Tamano said, adding that small cable television providers could lose “billions of pesos” a year.

(We invested in fiber optics and in connecting the households, but they will be using frequencies for free. We pay for our infrastructure, so there will be a monopoly.)

She also said 18,000 to 20,000 workers could lose their jobs.

The House committee on legislative franchises began discussing the ABS-CBN franchise bill only on Feb. 24, the same day the Senate opened its inquiry on the allegations against the network.

Speaker Alan Peter S. Cayetano has denied that the House of Representatives, under his leadership, was delaying the deliberation of the ABS-CBN franchise renewal.

Last week, five more senators moved to extend the validity of the ABS-CBN franchise until 2022, while its renewal remains pending in the 18th Congress.

Senators Juan Miguel F. Zubiri, Sherwin T. Gatchalian, Emmanuel Joel J. Villanueva, Maria Lourdes Nancy S. Binay and Juan Edgardo M. Angara said they would be filing a concurrent resolution allowing the network to operate until the final determination of its franchise.

Before this, Senator Franklin M. Drilon filed Concurrent Resolution No. 6, which carried the same proposal; while Senator Ramon B. Revilla, Jr. filed Senate Bill No. 1374 to extend the franchise until 2020. — Arjay L. Balinbin

Open houses upended by virus in latest blow to soft market

JODI FREED had everything in place to sell her three-bedroom Queens apartment: professional pictures, cut flowers and an open house scheduled for Saturday.

But the mom of two had second thoughts about letting the general public inside her home in the age of coronavirus. On Thursday, the day after her listing hit the market, Freed called off the showing.

“I have a son with asthma and a daughter who has epilepsy and I really don’t want a million strangers in and out of my house,” Freed said in an interview. “I didn’t want to put my family at risk.”

New York City brokers are puzzling over what effects the spreading virus will have on sales in a market that’s already soft. Sellers have been reducing prices in the face of rising inventory and buyer concerns that values have peaked.

Now, there’s a threat of contagion from close contact with people and surfaces — the essence of a real estate open house where buyers and gawkers come, linger and touch.

“If the coronavirus for some reason — and I hope it doesn’t — goes out of control and New York City faces drastic increases in the virus, that may have a chilling effect,” said Fritz Frigan, executive director of sales and leasing at Halstead, who compiles a weekly index of open house activity across the five boroughs.

Last weekend, open houses had an average attendance of 4.77 visitor groups, down from 5.62 the prior weekend, according to Mr. Frigan’s index. The data is based on 270 broker surveys collected last week.

Mr. Frigan said his office has so far seen one potential seller waver on whether to even list a property out of concern about having visitors come look at it.

Ms. Freed, working with Keller Williams broker David Kong, listed her renovated apartment in the Bay Terrace neighborhood at $675,000. The unit is in a doorman building and has two terraces with views of Little Neck Bay. The amenities include a pool and a tennis court, according to the listing.

Now, Ms. Freed is the position of trying to market her home while limiting the number of people who get to see it. She’s considering having a day of showings followed by a deep cleaning, or possibly even delaying a sale.

“They’re playing soccer in a stadium and not letting people come watch,” she said, referring to the situation in Italy. “How can I possibly say ‘OK, come to my home?’” — Bloomberg

Fluid: Choosing between a man and a woman

FOR A woman who’s tired of being in relationships with the opposite sex, is the secret to happiness finding love with the same sex? In iWant’s new series, Fluid, that is exactly the situation Mitch (played by Roxanne Barcelo) finds herself in as she is caught between an ex-boyfriend (Joross Gamboa) and George (Ann Colis).

The series starts airing on March 13 on iWant.

“I taught a class in Assumption [College] and I kept hearing the word ‘fluid’ whenever I’d ask my students what their sexual orientation was. They then told me that it meant that sexually or romantically, you don’t limit yourself. It’s a very inclusive term,” Benedict Mique, the series’ director, said during a press conference on March 6 at the ABS-CBN offices in Quezon City.

“Sexual fluidity” is a term used for people who experience changes in their sexuality or sexual identity, according to the Urban dictionary. A sexually fluid person can be attracted to the opposite sex for much of their life but then gradually become attracted to people of the same sex.

The romantic-comedy series, which runs for four episodes, follows Mitch and “her journey to self-discovery” that begins after she breaks up with her cheating ex-boyfriend Jacob.

Mitch’s friends then recommend she try dating other girls. After unsuccessful trials, Mitch then meets George who “challenges Mitch to get away from her comfort zone,” says a press release.

But Jacob returns and wants to win her back again thus placing Mitch in a dilemma of choosing one over the other.

“[The term] ‘fluid’ became a safe space for people who can’t define their sexuality. It can be in stages or phases and [it should be] recognized as a journey of exploration,” Ms. Barcelo said in the press conference.

In trailer shown at the event, snippets of the love affair between Mitch and George are seen, but a considerable amount of the trailer was dedicated to showing the reactions of Mitch’s family seeing her with a woman.

Mitch’s family is composed of her mother (Janice de Belen), father (Al Tantay), and a brother.

The crux of the series, Mr. Mique said, is that even though the series is “skewed towards the LGBT community,” at its core it is a family series.

“There are a lot of kids who are confused… and a lot of them are trapped because they have no way of expressing [their sexual identity]. I think parents and their children should watch it because they have a lot to learn. Basically, the film is about acceptance, it’s a good message for everyone,” Mr. Mique said.

Spoiler alert — there is a love scene.

Fluid drops its first episode on March 13 on iWant while the second to fourth episode drop on March 16. — Zsarlene B. Chua

Diokno says banks have enough buffers vs risks

BANGKO SENTRAL ng Pilipinas Governor Benjamin E. Diokno said banks have enough capital buffers to help them ride out risks from the virus outbreak. — BW FILE PHOTO

BANGKO SENTRAL ng Pilipinas (BSP) Governor Benjamin E. Diokno downplayed analysts’ expectations of a possible rise in nonperforming loans (NPLs) and slower credit growth due to the coronavirus disease 2019 (COVID-19) outbreak, saying local banks are “adequately capitalized” to withstand such risks.

“The fear that Philippine banks will experience bad loans and slower credit growth on account of COVID-19 outbreak is unfounded,” Mr. Diokno said in a text message on Monday.

“They have capital adequacy ratio (CAR) much higher than BSP-prescribed 10% and Bank of International Settlements-prescribed eight percent,” he added.

S&P Global Ratings said in a report on Monday that 2020 could be another year of easing loan growth and higher bad loans for local banks, with COVID-19 seen hampering economic growth and financial markets.

The credit rater, however, noted that Philippine banks are seen weathering the outbreak’s impact and be resilient due to their strong fundamentals.

“We expect trade and private investments to slow in Philippines due to the global coronavirus outbreak, and this will drag on banks’ lending business,” S&P Global Ratings credit analyst Nikita Anand said.

S&P said local banks’ bad loans increased by 30 basis points (bps) to comprise 2.1% of outstanding loans in 2019, partly due to the default of Hanjin Heavy Industries and Construction Philippines, Inc.

“NPLs are likely to inch up further in 2020 due to macroeconomic headwinds,” S&P said, but noted that lenders’ “good capital buffers,” with an industry average Tier 1 CAR of about 14%, seen to support banks amid a prolonged outbreak.

With the virus outbreak taking a toll on industries like travel, hospitality, restaurants, entertainment, and trade in the near term, banks with larger exposures to such sectors are expected to feel the impact.

“The banking sector’s exposure to hotels and catering is about 2% while wholesale and retail trade is 12%. This is meaningful exposure and could translate to higher delinquencies,” S&P’s Ms. Anand said.

“Banks may offer moratoriums on repayments for badly hit sectors if the health situation escalates, similar to in Singapore and Thailand,” she added.

Aside from a possible increase in bad loans, S&P also said credit growth could be softer than initially expected, with the expansion in 2019 already slowing to 8.8% from 15% in 2018.

“We expect credit growth of 8%-10% in 2020, down from previous forecast of 10%-12%. This means the country’s banks could see a second year of single-digit growth after a long run of double-digit expansions in previous years,” S&P said.

The global debt watcher said COVID-19 could dent corporate loan demand and dampen the growth seen in the retail segment.

“In our view, the impact of COVID-19 could drag on demand for corporate loans — which make up 82% of banking system’s loans — and stifle momentum in the retail segment. Last year, retail loans were a key growth driver, expanding 16% year-on-year,” it said.

S&P on Friday cut its growth outlook for the country to 5.8%, a further downgrade from the 6.1% it gave in February.

The economy grew by 5.9% in 2019, below the official 6-6.5% target. The government targets 6.5-7.5% economic growth this year.

Socioeconomic Planning Secretary Ernesto M. Pernia last week said gross domestic product (GDP) growth could be reduced by one percentage point this year based on a scenario where inbound Chinese tourist will be cut by 100%, foreign tourist arrivals will be shaved by 10%, and with trade that could be “drastically reduced.”

Confirmed cases in the Philippines rose to 20 as of Monday with local transmission already recorded. President Rodrigo R. Duterte on Sunday signed Proclamation 922, putting the country under a state of public health emergency.

COVID-19 has already infected over 1,000 people across the globe and killed over 3,500. — Luz Wendy T. Noble

Cebu Landmasters raises P8 billion for property development

CEBU Landmasters, Inc. (CLI) has generated P8 billion from issuing corporate notes last week, which will fund its plans to buy additional land, expand in more areas and develop a business hub in Davao.

In a disclosure to the stock exchange Monday, the listed property developer said it signed a notes facility agreement last week for the corporate notes, which it said was oversubscribed.

The issuance was composed of three series: the first one has a tenor of five years and amounts to P1.3 billion with a fixed spread of 90 basis points; the second has a tenor of seven years and amounts to P5.7 billion with a fixed spread of 95 basis points; and the third has a tenor of 10 years and amounts to P1 billion with a fixed spread of 100 basis points.

Proceeds from the issuance will be used for land acquisitions in Cebu, Bohol, Bacolod, Cagayan de Oro and Davao and expansion in Puerto Princesa, Leyte, Butuan and General Santos City. The rest will support the development of a 22-hectare central business hub in Matina, Davao.

In an interview, CLI Chairman and Chief Executive Officer Jose R. Soberano III said the company has a lineup of projects that it wants to fund through loans, noting the timing is good because of low interest rates.

“We’re always on the go. On top of the bilateral loans that we have already arranged, there are those that we need to put in some more rather than having to tap bilateral loans [that are there] for the taking,” he said.

“There were a lot of offers for us on the debt market… (But) we were thinking, because this corporate note is simpler and it’s also on a clean basis, we could have done a retail bond because we’ve been rated double A in PhilRatings, which is pretty good for a young company,” Mr. Soberano added.

CLI Chief Finance Officer Beauregard Grant L. Cheng noted the company currently has 37 projects under different stages of construction, with 27 more in the pipeline.

“We’ll be launching those 27 projects in the next 24 months,” he said.

CLI tapped BPI Capital Corp. and China Bank Capital Corporation to jointly arrange the P8-billion corporate notes issuance. Development Bank of the Philippines, Land Bank of the Philippines and Rizal Commercial Banking Corp. were the co-arrangers and BPI Asset Management and Trust Corp. was the Facility Agent and Paying Agent.

Those that participated in the offering were Bank of The Philippine Islands, China Banking Corp., Development Bank of The Philippines, Land Bank of the Philippines, Rizal Commercial Banking Corp. and Social Security System.

Shares in CLI at the stock exchange shed 18 centavos or 3.98% to close P4.34 apiece on Monday. — Denise A. Valdez

New Megaworld condominium to rise in Lapu-Lapu City

MEGAWORLD Corp. is looking to attract homeowners who want to live in a place “where everyday feels like a vacation,” with its new residential condominium in Lapu-Lapu City, Cebu.

The Pearl Global Residences is located in the property giant’s 30-hectare The Mactan Newtown township, and within walking distance from the beach.

In a statement, Megaworld said the project is targeting “homeowners who are want to be part of a charming community while also enjoying utmost convenience and accessibility.”

The 20-storey condominium has 222 residential units, bringing the number of residential units in The Mactan Newtown to 1,836.

The Pearl Global Residences offers units, ranging from executive studio with either a balcony or a lanai (up to 40 square meters); one-bedroom and executive one-bedroom with balcony (up to 59 sq.m.); two-bedroom with balcony or lanai (up to 80 sq.m.); and three-bedroom with balcony (up to 116 sq.m.).

The Pearl Global Residences’ roof deck will feature an outdoor lounge and garden, a dry bar, and a viewing deck where residents can enjoy panoramic views of the Cebu mountains, the Magellan Bay and the Hilutungan Channel, the nearby islands, as well as the nearby Lapu-Lapu Shrine.

“The Pearl Global Residences will showcase the Filipino pride to the world. We got the name from the country’s title of ‘Pearl of the Orient,’ and as we expect more visitors and tourists to come to The Mactan Newtown in the coming years, we want this tower to be one of the icons of Filipino pride inside our development,” Noli D. Hernandez, president, Megaworld Cebu Properties, Inc., said in a statement.

Amenities, which are located on the second level, include an adult pool and kiddie pool, fitness center, outdoor lounge and seating areas, children’s play area, function room, game room, reading nook, and co-working spaces.

The Pearl Global Residences is scheduled for completion in 2025.

Netflix and UN Women create women-curated playlist for Women’s Day

IN CELEBRATION of International Women’s Day, streaming service Netflix and UN Women (United Nations Entity for Gender Equality and the Empowerment of Women) has created a special playlist of 55 titles curated by women “behind and in front of the camera” including Sophia Loren, Janet Mock, Salma Hayek, Yalitza Aparicio, Millie Bobby Brown, Laurie Nunn, Lana Condor, Petra Costa, and Ava DuVernay.

“This collaboration is about taking on the challenge of telling women’s stories and showing women in all their diversity. It’s about making visible the invisible, and proving that only by fully representing and including women on screen, behind-the-camera and in our narratives overall, society will truly flourish,” said Anita Bhatia, UN Women Deputy Executive Director, in a press statement.

International Women’s Day 2020 was on March 8 though the Philippines celebrates March as National Women’s Month.

The playlist, called “Because She Watched,” includes series, films, and documentaries like Unbelievable, Luna Nera and Followers, Orange is the New Black, Lionheart, and Sex Education. These titles, Netflix said in the statement, have “have started important, often hard, conversations that have helped to challenge the way we see the world.”

The collection is available on Netflix by searching “Because She Watched” on Netflix. Each title in the collection will indicate who chose the said title.

“TV and film have the power to reflect and shape popular culture, which is why we believe it’s so important that more people see their lives reflected in storytelling”, said Dr. Stacy L. Smith, Founder of the USC Annenberg Inclusion Initiative, in the Netflix statement.

“Our research has shown that inclusion behind the camera leads to greater inclusion on screen. We’re encouraged that last year, 20% of the directors of Netflix original films were women and we are excited to celebrate these female creators on International Women’s Day. There’s still more to do to reach equality, but by recognizing female talent from around the world, we hope more women will feel encouraged to tell their stories, pushing that number even higher,” she added.

The collection is available for the entire year.

“We hope that it will spread the message that realizing women’s rights means putting women front and center to achieve gender equality,” Netflix said in the statement. — ZBC

1...9,7809,7819,782...14,243Page 9,781 of 14,243
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube