Leading VisMin developer Cebu Landmasters recently announced the signing of a new Php 360 million joint venture focused on filling a rapidly rising demand for co-living spaces that deliver affordable, safe e transient housing in Cebu for young professionals and students seeking quick access to strategic business centers.
Named as Sugbu Prime Estate Inc., the partnership will kick off with a 7,500 sqm prime property along Banilad and walking distance to the Cebu IT Park where many Business Process Outsourcing firms are located. With renewed BPO interest in Cebu, areas like Banilad on the fringe of the BPO hub have also become highly popular among thousands who work there.
Banilad is also attractive to those employed in the nearby Cebu Business Park, and to students of the top educational institutions in the area such as the University of Cebu-Banilad, University of Southern Philippines and University of San Carlos in Talamban which is one ride away.
The mixed-use development will have retail space, over 300 dormitory rooms, and a self-storage facility. It is a partnership with the enterprising Farrarons family led by father-and-son tandem Quito and Chip Farrarons who also owns two hotels in strategic locations and a strip mall in Cebu City.
CLI chairman and chief executive officer Jose Soberano III disclosed: “We have long wanted to do a co-living or dormitory project to cater to Cebu’s workers and were thus excited to explore this opportunity with the Farrarons. Both our families believe this venture will contribute to the growth of Cebu and improve quality of living especially for those seeking secure affordable housing near prime business areas.”
The project also houses self-storage facilities in a prime city location attractive to businesses doing e-commerce and homeowners moving to more centrally located residential units but offering less space, among other groups.
“A recent market study of Santos Knight Frank disclosed that there will be an increase in demand for warehousing for essential goods storage. We will be ready for this,” added Soberano.
The project to be completed by the end of 2022 primarily targets young professionals and students returning to work and schools, respectively, and requiring comfortable home-away-from-home secure quarters that would spare them from the health threats and inconveniences of commuting.
Through the partnership, the project is CLI’s first entry to the Co-Living or Dormitory segment in the metropolis of Cebu which is uniquely positioned to benefit from the projected influx of outsourcing firms as well as the global tourism industry being the key international gateway to the South’s acclaimed destinations.
The venture is also designed to improve CLI’s recurring income streams as part of CLI’s diversification strategy. The leading developer in VisMin with the largest residential market share in the region is also scheduled to roll out 1,448 hotel rooms in Visayas and Mindanao by around 2024.
The listed company has firm agreements with three major international hotel groups: The Ascott Limited for four hotels with a total of 802 rooms; the Radisson Hotel Group for one hotel with 144 rooms; Accor for one hotel with 195 rooms. The brands for the remaining 307 rooms will be announced in the next few months.