GT Capital plans majority stake in Profriends

GT CAPITAL Holdings, Inc., the holding company for tycoon George S.K. Ty’s businesses, is raising its stake in mass housing developer Property Company of Friends, Inc. (PCFI) starting this year.

GT Capital President Carmelo Maria Luza Bautista said in a mobile phone message last week the conglomerate will exercise its option to increase its direct ownership in the real estate firm to 51%.

“The plan is to increase first to 42% within the first half of the year and then to 51% by the first quarter of next year,” Mr. Bautista said.

In August last year, GT Capital signed an agreement to acquire 22.68% of PCFI for P7.24 billion, subject to closing conditions, with an option to boost its stake to 51% within the next three years.

Profriends Group, Inc., which was planning on undertaking a P7.7-billion initial public offering (IPO), owns 98.51% of the issued and outstanding capital of PCFI, an affordable housing firm.

Asked if PCFI will pursue the IPO, Mr. Bautista said: “Not in the near future.”

Based on its previous filing, Profriends was planning to sell 385.750 million primary common shares, representing 11% of the company’s outstanding capital stock, at maximum price of P20 apiece to finance the development of its projects and land banking initiatives.

Profriends obtained the approval of the Securities and Exchange Commission (SEC) to launch the equity offering, but failed to secure the go-signal from the Philippine Stock Exchange (PSE).

Profriends had tapped First Metro Investment Corp. (FMIC) as its underwriter for the IPO. FMIC is the investment banking arm of Metropolitan Bank & Trust Co., which is part of GT Capital.

PCFI netted P2.1 billion last year after booking P7 billion in total revenues. GT Capital started consolidating its financial performance in September.

“GT Capital’s recent acquisition of PCFI further expands the group’s range of products and market presence in the property development sector,” Federal Land, Inc. Chairman Alfred V. Ty said in a statement last week.

Aside from Federal Land and Metrobank, GT Capital has interests in Toyota Motor Philippines Corp.; Toyota Manila Bay Corp.; Toyota Cubao, Inc.; Toyota Financial Services Philippines Corp.; Global Business Power Corp.; Philippine AXA Life Insurance Corp.; and Charter Ping An Insurance Corp.

The conglomerate reported a 32% uptick in bottomline to P12.1 billion last year from P9.2 billion in 2015, driven by the strength of its automotive and power generation businesses.

Shares in GT Capital added P16 or 1.12% to close at P1,450 each last Wednesday.

Source: Business World

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LRT will reach Cavite soon

MANILA, Philippines — With Metro Manila’s insufficient network of trains, the consortium of Ayala Corporation and Metro Pacific Investments Corporation (MPIC) brings good news to commuters: The construction of the P64.9-billion ($1.37-billion) Light Rail Transit Line 1 (LRT1) extension from Baclaran to Bacoor, Cavite will begin in June.

House and Lot for Sale

This was after the group of Ayala and MPIC – Light Rail Manila Consortium (LRMC) – on Friday, February 12, signed the P24-billion ($506.02-million) loan facility and the engineering, procurement, and construction (EPC) agreement for the LRT1 Cavite extension deal.

The Department of Transportation and Communications (DOTC) awarded the LRT1 Cavite extension project to the LRMC in September 2014.

"These milestone agreements give us significant headway towards the construction and commissioning of the much-awaited Cavite Extension which will benefit an additional 300,000 passengers from four big cities in southern Manila," LRMC president and CEO Jesus Francisco said.

LRMC signed the 15-year Omnibus Loan and Security Agreement with Metropolitan Bank & Trust Company (Metrobank), Security Bank Corporation and Rizal Commercial Banking Corporation (RCBC), with P15.3 billion ($322.59-million) of the total loan amount allocated for the Cavite extension and P8.7 billion ($183.44-million) for the rehabilitation of the existing LRT1 system.

Stalled relocation of illegal settlers

But according to Francisco, unfinished right-of-way acquisition and stalled relocation of illegal settlers take a toll on the construction of the LRT1 Cavite extension.

"Our main concern is that there are still some ISFs – illegal settlers. But we got the report of the grantors that by April, they expect to do relocation of most of them, if not all of them," Francisco said.

As of today, the chief of LRMC said the government has delivered about 95% of the right-of-way acquisition.

IMUS HOUSE FOR SALE

"We think that the stations will come later, but first we have to start building the carriage way. April is when they said they would address the problems of the ISF. If they can really move, by June 1 we will be able to start," Francisco told reporters on the sidelines of a briefing in Makati City.

French firms as contractors

LRMC took on French companies Bouygues Travaux Publics and Alstom Transport Private Limited to help build the extension.

Francisco said that LRMC and contractors Bouyges Travaux Publics and Alstom Transport are set to commence the construction of the 11.7-kilometer Cavite extension once right of way is delivered by the DOTC and Light Rail Transit Authority (LRTA).

The extension is targeted for completion in about 4 years after the delivery of right-of-way.

The 11.7-kilometer Cavite extension will link with the existing system immediately south of the Baclaran Station, and run in a generally southerly direction to Niog, Cavite.

Eight new stations will be provided with 3 intermodal facilities across Pasay City, Paranaque City, Las Pinas City and Cavite.

The new stations are Aseana, MIA, Asia World, Ninoy Aquino, Dr Santos, Las Piñas, Zapote and Niog. The intermodal facilities will be located at Dr Santos, Zapote, and Niog.

The commercial speed of the Cavite extension will be 60 kilometers per hour.

LRMC said the new stations will be accessible to and from nearby community facilities such as shops, schools, stadium, and park.

Bouygues Travaux Publics, which will provide the railway infrastructure, is known globally for complex projects involving tunnels, engineering structures and road, port and rail infrastructure.

Among its recent projects are the Hong Kong–Zhuhai–Macao Bridge, the Port of Miami Tunnel, and the Nîmes-Montpellier rail bypass in France.

Under the agreement, Alstom will provide system integration and project management; build a new train depot; extend the existing depot complete with track works; and establish a new power supply, catenary lines, and signaling and telecommunications system.

Alstom will also modernize the signaling system of the existing 20.7-kilometer line, which runs from Roosevelt Avenue in Quezon City to Baclaran.
Source: Rappler.com

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About Continuing Professional Development (CPD) for Real Estate Brokers

Rules and regulations of Continuing Professional Education (CPE) in the Philippines.

A Real Estate Broker in order to renew his license need to present upon renewal a Notarized Continuing Professional Education (CPE) certificate from a PRC-accredited CPD provider.

CPE is all about and why professionals should continue to enhance their respective professions. The aim of CPE is to enhance and raise the technical skills and competence of professionals. CPE has now evolved to Continuing Professional Development (CPD).

The Professional Regulations Commission (PRC) has 46 professional regulatory boards covering various disciplines. These boards are responsible in monitoring the CPE/CPD requirements of their respective professionals, based on the mandate of the 1987 Philippine Constitution, R.A. 8981, otherwise known as the PRC Modernization Act of 2000, and Executive Order No. 220, directing the Adoption of the Code of Good Governance for the Professions in the Philippines.

Each board has its own CPE/CPD Council chaired by any member of the board. It has two members, the first is either the President or Officer of the accredited professional organization and the second is either the President or Officer of the association of deans or heads of colleges/universities offering the course. The CPE/CPD Council is empowered to monitor periodically the implementation of programs/activities. This is done to find out if the program or activity submitted is implemented or not.

A provider can be a natural person or a professional group or organization. A program covers activities that will enhance the competence of the professionals, and can be filed only by accredited providers.

A provider or a program should file application forms for accreditation and pay the prescribed fees.

Any professional can earn CPE/CPD credit units for a training program (seminar, conference or convention) that he/she attended, or served as resource person, panelist or reactor, and facilitator or moderator. A professional can also earn credit units for a subject finished for a degree, or the degree itself, be it masteral or doctoral, and residency or fellowship. Moreover, he or she can earn units by accomplishing a distance learning module or presenting a technical paper or publishing an article in a professional journal. He or she can further earn credit units by being the author of a book, monograph, or journal article; as editor of a book or professional journal; as peer reviewer of a book or journal article; as well as author of a research, innovative program or creative product. If he or she has participated in a postgraduate training or study tour, produced an invention or held a professional chair, then credit units can also be accredited to him or her.

Currently, there are two bills related to CPE/CPD, one pending in the House, and one filed in the Senate, to further enhance the continuing education of the professionals in the country.

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Doing Real Estate Business in the Philippines

Guide when Buying Real Estate in the Philippines

This is the standard sharing of expenses between the buyer and the seller when transferring the real estate property title (TCT - Transfer Certificate of Title or CCT - Condominium Certificate of Title) to a new owner:

The SELLER pays for the:

Capital Gains Tax equivalent to 6% of the selling price on the Deed of Sale or the zonal value, whichever is higher. (Withholding Tax if the seller is a corporation)
Unpaid real estate taxes due (if any).
Agent / Broker's commission.

The BUYER pays for the cost of Registration:

Documentary Stamp Tax - 1.5% of the selling price or zonal value or fair market value, which ever is higher.
Transfer Tax - 0.5% of the selling price, or zonal value or fair market value, which ever is higher.
Registration Fee - 0.25% of the selling price, or zonal value or fair market value, which ever is higher.
Incidental and miscellaneous expenses incurred during the registration process.

The above sharing of expenses is the standard practice in the Philippines. However, buyers and sellers can mutually agree on other terms as long as it is done during the negotiation period (before the signing of the "Deed of Sale").

The "Deed of Sale" or "Deed of Absolute Sale" is the document showing legal transfer of real estate property ownership. The deed of sale is then taken to the Registry of Deeds to be officially recorded after paying the documentary stamp, transfer tax and registration fees. Always verify from the Registry of Deeds the authenticity of a Transfer Certificate of Title before buying a property. If the seller only has a tax declaration, be extra cautious and check with neighbours, the Barangay captain or anyone in the know in the community to verify the seller/owner's true identity and the property's history.

Your Agent / Broker will usually do the registration process (sometimes for a fee). However, all government taxes, transfer fees and incidental or miscellaneous expenses will be shouldered by the buyer.

Documents needed when transferring the title (TCT or CCT) to the new owner:
Certified true copy of the title
Notarized copies of the Deed of Sale
Latest tax declaration of the property
Certificate from the Bureau of Internal Revenue that the capital gains tax and documentary stamps have been paid
Receipt of payment of the transfer tax and registration fees

An adapted form of the "Torrens" system of land registration is used in the Philippines. The system was adapted to assure a buyer that if he buys a land covered by an Original Certificate of Title (OCT) or the Transfer Certificate of Title (TCT) issued by the Registry of Deeds, the same will be absolute, indefeasible and imprescriptible.

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Curious, How much do Brokers Earn?

Working as a real estate broker requires a tremendous amount of talent. The profession entails not only practical skills such as documentation, it demands for sales and people skills to improve an agent’s capacity to earn more.

With the booming status of the real estate industry in the country, most people would often wonder how much does a real estate broker earn?

There are many ways on how to practice real estate in the Philippines. As a common system, brokers work as freelance agents who establish their own network of clients and gather their own listings of properties. These brokers handle their own time and would schedule their viewings depending on the number and availability of the clients. On the other hand, there are brokers who are employed in reputable brokerage firms who get a monthly basic salary aside from their commissions. These employees are in-house brokers who would go to the office on a daily basis and will follow the regular office hours. Their viewings are also scheduled within office time and clients are usually assigned to them which are gathered from the inquiries.


In a nutshell, brokers will get a 2.5% to 5% commission on every property which will be sold. According to Marie-Jen Chua, a broker for seven years now, the specific percentage of the commission would depend on the selling price of the property. If the property is exceptionally high-priced, a 2.5% is a reasonable share on the total amount of the house or condominium. For example, 2.5% of a property worth Php 50,000,000 is Php 1,250,000. That is already more than a million peso worth of commission from one sold property. For the usual transaction involving medium-priced properties, a 5% commission is the usual share of brokers from the sale. For dealings involving the sale of commercial properties for businesses, almost the same percentage of commission will apply, ranging from 3% to 5%.

When it comes to brokers’ fee from both residential and commercial spaces for rent, an equivalent of a one-month rent will be their share for a one-year lease. As a common practice, every subsequent lease or renewal for another year by the same client will give the broker another 50% of the one-month rental. Sometimes, when a contract is good for five years, the broker will get an equivalent of one-month rental per year.

Hence, a freelance real estate agent would mainly depend on the amount of commissions he or she gets from each property sold or rented. Freelance brokers must be diligent enough to save their earnings because there is no assurance when the next commission will materialize. On the other hand, an in-house real estate broker will get their share of monthly commissions on top of their basic salary. According to one of the sales directors of a prestigious in-house brokerage firm, their in-house brokers would get Php 30,000 to Php 35,000 as monthly income and when commissions are included, each agent will get an average of Php 100,000 per month. Brokers who work for brokerage firms do not usually enjoy flexibility in time since they would have to render office duty but they have a fixed salary to expect monthly. However, brokers are given a quota which they must meet in order to keep the job.

Now that you have acquired an idea how much a broker makes whether freelance or employed, it is time for you to decide whether this career path is for you. One thing is for sure, money should never be your topmost motivation in order to be successful in this career. You need passion and perseverance to be triumphant in facing the challenges ahead.

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West Valley Fault traverses 57 Subdivisions

FAULT-RIDDEN. Active faults (red lines) cut through a part of Pasig City occupied by subdivisions Valle Verde 5 and 6. Image from Phivolcs' Valley Fault System Atlas

MANILA, Philippines – Maps recently released by the Philippine Institute of Volcanology and Seismology (Phivolcs) allow people to see the location of the West Valley Fault and East Valley Fault in Greater Metro Manila.

The question now is: do you live on an active fault?

Rappler compiled a list of subdivisions or residential villages that appear to have active faults.

At the end of this article, there is also a compilation of screengrabs from the Phivolcs maps showing where the faults are in those subdivisions.

The list only includes places where houses appear to have been built on top of an active fault or where, based on the subdivision's structure, houses are likely to be built on top of the fault.

Affected subdivisions are diverse: from enclaves of the rich like Loyola Grand Villas in Quezon City, to the depressed Maharlika Village in Taguig.

Rappler found that 57 subdivisions or residential villages are transected by the West Valley Fault, a 100-kilometer active fault that can generate a 7.2-magnitude earthquake. (INFOGRAPHIC: How powerful is a magnitude 7.2 earthquake)

Only one subdivision, Gloria Vista Subdivision in Rizal province, is transected by the shorter East Valley Fault which can generate a 6.5-magnitude earthquake.

But we encourage you to take a look at the Valley Fault System Atlas yourself in case we missed something.

According to studies, residential buildings will suffer the most damage during a 7.2-magnitude earthquake because many of them do not follow building standards. Phivolcs Director Renato Solidum Jr said that at least 40% of all residential buildings in Metro Manila would either be heavily or partially damaged.

Subdivisions or villages with the West Valley Fault:

Rizal (Rodriguez)

Amity Ville
Christine Ville
Marikina

Loyola Garden Village
Loyola Subdivision
Monte Vista Village
Industrial Valley Subdivision
Cinco Hermanos Subdivision
Wood Crest Subdivision
Quezon City

Sunnyside Heights Subdivision
Doña Anna Village
Fil-Heights
Filinvest Homes II and Villa Amor Uno
Northview Subd
Loyola Grand Villas
White Plains Subdivision
Queensville Court
Greenmeadows
Blue Ridge B
Pasig

Valle Verde 6
Valle Verde 5
Valle Verde
Valle Verde 3
Valle Verde 1
Kawilihan Village
Makati

East Rembo
Pembo
Rizal
Taguig

Pinagsama
Pinagsama Phase II
Pan-Am Village
North Signal Village
Central Signal Village
South Signal Village
Maharlika Village
Camp Bagong Diwa
Parañaque

Posadas Village
Muntinlupa

Solid Mills Village
Embassy Village
Liberty Homes
Carmina Compounds
L&B Subdivision and Compound
UP Side Subdivision
Country Homes Alabang
Planas Ville
Camella Homes Alabang 3
Country Homes Subd and Jose Marey Subdivision
Camella Homes
Susana Heights Village 1
Susana Heights Subd Phase I
St Anne Homes
Real Ville Subdivision
Laguna

Adelina 1A Subdivision
GSIS Village
Elnor Homes
Sampaguita Village
United San Pedro Subdivision
Cavite

Wedgewoods Subdivision
Next steps

What do you do if your house looks like it's near a fault?

Don't panic.

According to Phivolcs, you'll only need to consider moving out if your home is right on top of the fault or within 5 meters of it.

This is because your house may be at risk when the ground shifts beneath it during an earthquake.

Even if your home is outside the 5-meter bufferzone, it will still be subject to intense shaking during a 7.2-magnitude earthquake. You need to make sure it was built properly. (See groundshaking simulation map on this story: What dangers await when the West Valley Fault moves?)

You can consult a structural engineer to check if the building strictly follows the National Building Code of the Philippines.

Your local government also has building officials responsible for checking if structures in your city or province follow safety standards. But in many cases, these inspectors are handling too much work to look into each building.

If your house is made from concrete hollow blocks, you can do the checking yourself using Phivolcs' checklist for earthquake-ready houses.

Looking to buy a house far from any active fault?

The Housing and Land Use Regulatory Board (HLURB) says they now require subdivision developers to get certification from Phivolcs to prove their project is far from a fault.

To be sure, you can ask the developers to show a copy of the certificate.

What do you do if your subdivision, city or province isn't in the list? Don't be complacent.

A 7.2-magnitude earthquake will be so strong it will likely be felt even in cities without the West Valley Fault.

The Manila Cathedral in Manila, for instance, has been damaged many times by earthquakes generated by the fault.

Have your homes checked for safe building standards, don't take earthquake drills for granted, and always be ready for any scenario.
Source: Excerpts from Rappler.com

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BSP plans to launch REP index

MANILA - The Philippine central bank will soon introduce a property price index, part of a series of measures to help prevent an asset-price bubble from forming in the real estate market.

The Residential Real Estate Price Index will help policymakers track property prices and assess the risks arising from the country's booming real estate market, Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco said in an email to reporters.

"The series should be available to the public before the end of the second quarter," Tetangco said. It will be the first index tracking property prices in the country.

Policymakers have repeatedly said there are no signs of an asset bubble in the country's rapidly expanding property market, noting that while banks' property exposure continued to rise, their non-performing real estate loans were declining.

Tetangco said in February that latest data showed universal and commercial banks were in a position to withstand shocks in their real estate exposure.

Strong consumption, fuelled by rising incomes from a growing outsourcing industry and steady remittance inflows from Filipino workers overseas, was driving the property market upturn.

The Philippines is expected to remain one of the fastest-growing economies in Asia, with the government targeting 7-8 percent growth this year, after a 6.1 percent expansion in 2014, the fastest in Asia after China. 

Source: ABS - CBN News

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