The Ironic 2020 For Ortigas Land: The Most Prolific Year In Times Of Economic Crisis
Formerly known as Ortigas & Company, Ortigas Land had been in the business for eight decades and counting. Same as with other resilient companies, the organization had gone through tough times. However, never had the modern world experienced a pandemic that we’re experiencing now.
This year’s crisis has created more than health issues. The ongoing pandemic also raised economic catastrophes such as the closing of the Philippine Stock Exchange (PSE) for days, thousands going out of business, and millions losing their jobs.
Despite these negative impacts, the year 2020 has been the most prolific in the company’s history — yes, you read that right. This claim is neither a typographical error nor another annoying misinformation. While most companies were barely surviving, Ortigas Land, on the contrary, dares to make the most aggressive business expansion to date — quite ironic if you ask me.
Photo credit: Philretailers
From a briefing in Pasig City last February 18, the company’s president and chief executive, Mr.Jaime Ysmael, said, “This year is the most prolific year so far in our history, as we are set to launch three projects[…] The launch of our newest residential tower empowers us to set sail for new horizons as Ortigas Land, and anchor our position as a premier property developer…”
Let’s dive into more details on how Ortigas Land ironically made 2020 its most prolific year ever based on Mr. Ysmael’s statement.
The ₱15-billion Capital Investments For Three Projects
Mr. Ysmael announced that before the end of this year, there would be a schedule to launch three massive residential projects with a budget of about ₱15-billion. In his report, he stated that they would put in place a grand plan to construct projects with an unprecedented scale. That plan could give the company at least ten times its current net income within five to six years.
Out of the three projects, they already launched one: a 51-story residential building called The Residences located at The Galleon. This project is considered as the most expensive residential tower in the business district with a massive evaluation of ₱16 billion.
Located in an ideal location, as Ortigas itself was in the middle of the northern and southern parts of Metro Manila and near transportation infrastructures, the project can set a higher pricing standard for its clients. The Residences is an excellent opportunity for the company as it also gives the investors the rare chance to capitalize on it.
Photo credit: Philstar
Architectured with modern and sophisticated design, the tower is the only mixed-use development in the area. Out of its 51 floors, there are 43 floors for residential units, one floor for amenities, five floors for podium parking, as well as one floor for retail space.
Frankly, for a personal residency, this project was made for those willing to pay the high price in exchange for luxury living. Also, many clients still prefer the tower’s prime location for its modern, comfortable lifestyle since it’s placed along ADB Avenue at the heart of Ortigas Center. Each floor consists of only 12 units with selections from one-bedroom, two-bedroom, and penthouse units, spanning areas ranging from 69 to 411 square meters. For a one or a two-bedroom unit, it would cost around ₱24 million to ₱46 million. A penthouse, on the other hand, ranges between ₱102 million to ₱162 million.
The second main project of Ortigas Land this year is the Maven Tower in Capitol Commons. This 62-story project mostly targets today’s modern, busy, and young professionals who have a specific kind of lifestyle, passion, and interest.
Currently, at the pre-selling stage, you can make this as an investment to sell later to those working in the areas of Ortigas Center and Shaw Boulevard. You can choose from studio units, one-bedroom, two-bedroom, and three-bedroom units.
Whether you’re looking for future investments or planning to purchase high-end accommodation for yourself or your family while still at a lower price, now would be the best time to make your move.
The third and last main project that will launch this year is Circulo Verde. What’s unique about the location is: though it is inside the crowded Quezon City, you can still find a place of environmental sanctuary to relieve the stresses of living in a metropolitan area. Besides, Circulo Verde’s retail center, named Industria, has recreational facilities, parks, and shops to enjoy.
Possible Launching of REIT and Conducting IPO for Funding
Mr.Ysmael also said the company is looking forward to real estate investment trust (REIT) and initial public offering (IPO) as another step for making 2020 the company’s most productive year ever.
“REIT and IPO are two tools that are available to us to help us fund the aggressive expansion that we are undertaking right now. I cannot give you any timing, but we are studying the possibilities,” he mentioned while acknowledging the plan was already discussed with the shareholders.
Reportedly, the company already earned ₱2.3 billion in 2019. According to Mr. Ysmael, the company started with only ₱100 million back in 2014. For more than a twenty-fold investment growth in five years, a more exciting future awaits the company and those who will take the opportunity despite the ongoing economic meltdown.
Photo credit: Investopedia
On January 20, the government revised the REIT Act of 2009. This allowed REIT companies to list and trade in the stock market as another means to accumulate funds for property development. Besides Ortigas Land, many already expressed their interest in REIT, including the Ayala Land through AREIT, Inc.
If approved, AREIT, Inc. will be the first-ever REIT company in the country. It also means that those with a vast amount of cash can make a real estate investment, plus the majority of the middle-class population can reap the benefits as well. In addition, investors are also entitled to a dividend-based income, inflation protection, and portfolio diversification to widen the options for Filipinos.
Make The Most From This Ironic Year
As a disclaimer, I’m also part of the Ortigas Land organization. I did not write this article to sugarcoat the fact that our company was also negatively affected by COVID-19. Many of our business operations had stopped temporarily, and a large percentage of our employees have a work-from-home setup. Regardless, Mr. Ysmael, in his letter, stated that the company will still comply with the government’s new normal rules and regulations.
From many of my previous articles, I’ve always stated that a major crisis gives birth to rare opportunities. Another irony here is that if you’re ready for these changes, instead of panicking, you can feel more excited for the future.
If you want to know how to invest or acquire many of our products, don’t hesitate to contact me. Together, though it may seem ironic, we can make 2020 your best year ever.
Looking for a condo unit around Ortigas? I am Glenn Dineros, a licensed Real Estate Broker with PRC License # 5171. Reach me +63 977 852 3852 or +63 939 588 9352. You may also send your email at inquire@ortigasproperties.com(opens in new tab) so I can help you locate yours.
