Cebu Family Buys out Giant Developer in Project
The local Villalon family bought out the stake of its partner, real estate giant Landco Pacific Corp., in the 210-hectare Monterazzas de Cebu high-end mountain resort community project paving the way for an all Cebuano development and management team for the property.
The president and chairman of the family holding company Genvi Development Corp., renowned architect Augusto Villalon, said they decided to take over the project as they felt an all Cebuano team can manage the project better because they can understand market and deliver commitments faster.
â€œWe believe that a project of this scale should be and can be done by Cebuanoâ€™s,â€ Villalon said. â€œAt last and finally the project is a 100-percent Cebuano endeavor.â€
He maintained the takeover was a mutual decision and the terms were amicably settled.
The erstwhile joint-venture involved a 60-40 stake between property owners Genvi and developer Landco. The subdivisionâ€™s 72-hectare phase 1 had been pre-selling since 2007 and has since raised close to P1 billion in sales, almost half of it from 2009. Its north ridge phase has already been sold out.
The project covers several majestic peaks in barangay Guadalupe with the best commanding view overlooking Cebu City.
Villalon said Genvi compensated Landco for its expenses but refused to reveal the amount as it is prohibited in their agreement. Landco will also stay as project consultants for an indefinite period of time. However, several of Landcoâ€™s personnel including sales, marketing and technical officers in Cebu have transferred to Genvi.
The agreement signed between Villalon and Landco chief executive officer Alfred Xerez-Burgos was filed before the Housing Land Use and Regulatory Board on Februrary 12. The takeover was formally announced to sellers and brokers this week.
Although not a rookie in the real estate business, this is the first time Genvi will venture into a large scale project development. Villalon said, however, that they will keep the concept and standards Landco has set on the project. He also promised that the company will hire the best people to man the development work.
â€œWe will try to make this the greenest subdivision in the country,â€ he said.
The company is set to roll a P300 million development plan for the next 30 months to be funded by capital from the family and from several financing institutions.
Genvi vice president Marga Villalon said they understand the marketâ€™s apprehension on the capability of the company.
â€œThe proof is in the delivery of the things we promise we will do. It now lies within us to show we are able and capable to deliver to the standards that are expected of us,â€ she said.