VERDE ISLAND BUSINESS AND LEISUREESTATE INC.CREATING ABUNDANCE IN REAL ESTATE MULTI-PURPOSECOOPERATIVEUnit 242 ABBA Bldg.5756 Kalayaan Avenue,Pinagkaisahan,Makaticity,Philippines
OVERVIEW OF THE PHILIPPINE REAL ESTATEThe Philippine Real Estate industry is in the grip of a frenetic swirl aswidespread construction transforms the capital Metro Manila into a burgeoningworld-class metropolis. The outlying provinces and major cities are likewisedeveloping into vibrant economic growth areas that complement the main enginethat is Metro Manila.The industry is just now recovering from the effects of the 1997 Asian financialcrisis that brought the Philippine Real Estate sector into a long swoon. Thecurrent property boom indicates that the industry has awakened from theslumber and is now on a steady climb.At the recent news Real estate players arerejoicing that the Philippines has achieved its first investment grade rating fromFitch.The promising outlook for the residential sector of the Philippine Real Estateindustry is fuelled by rising incomes due to the steady rise in the Philippineeconomy for the past several years, as well as massive interest among overseasFilipinos wanting to establish permanent or temporary residence in the country oftheir birth or ancestry. The increasing number of expatriates in the country andthe increasing numbers of International migration and Increasing tourist arrivalsare likewise contribute to the demand for such residential facilities.
The similarly rosy outlook for the commercial/office sector of the Philippine RealEstate industry is driven by the upsurge in the number of Business ProcessOutsourcing (BPO) companies that are setting-up shop in the Philippines. Theemployment and income boom generated by these companies in turn fuel a consumerboom that has resulted in the take-up of more residential spaces.These developments indicate that the Philippine Real Estate industry is now on agrowth trajectory that is expected to be sustained in the short to medium-term. ThePhilippines is thus expected to emerge from this cycle as a country with bustlingmetropolitan areas with ultra-modern skylines and picturesque housing estates.These will in turn make the country a better and more conducive place to live and dobusiness in and thus will lay the foundations for future industry growth. The biggestopportunity for growth in the property sector is the housing.At the end of 2010,it issaddled with a backlog of 3.6 Million units, and as direct effect of population growth,this number is projected to rise to 5.7Million by 2016.
THE PROPERTY FOR SALEI.PARTICULARS OF THE PROPERTYThe property proposed for Residential Resort development is 100 hectaresand with the existing Verde Island Resort Facilities is 11.4 hectares ofbeachfront.The property is located in an area where the land proposed isgenerally for tourism, commercial and residential purpose.The 11.4 hectaresVerde Island resort has currently with buildings and development thatincludes:• Casa Maharlika with 32 rooms that needs repair• Casa Condesa with 12 rooms that needs repair• Main Restaurant/Bar and Main kitchen• Function rooms• Infinity pools• Pool house• Power house• View deck / Activity area and Walkways• Helipad• Dive site• Bamboo Plantation
II.PROPERTY LOCATIONVerde Island Resort is located at Sitio Subukin, Barangay San Antonio, IslaVerde, Batangas City,Philippines.the location 1.5 hour drive from Manilaand 40 minutes boat ride from Batangas City.To date, there are no ultra high endhotel resort and residential resort development in the whole Verde Island area.The Land area suited for residential resort development, foremost wellness centerand medical tourism is more or less 100 hectares and is situated alongside theVerde Island passage which is highly productive fishing ground for bothtraditional and commercial fishers, and where coastal tourism and developmentis booming. It is a major sea lane with commercial and fishing vessels regularlypassing through to reach the international ports of Batangas, Manila, and SubicBay.The property is a portion of Verde Island and is situated along the bodies ofVerde Island Passage between the islands of Luzon and Mindoro,Philippines.The eponymous Verde Island, located right in the center of the strait,is one of the best diving places in the Philippines due to its pristine clear watersand nice under water view. Daily trips for scuba divers are made from PuertoGalera. A team of marine conservationist declared in 2006 that the Philippines isthe Center of Marine Biodiversity in the world and Verde Island Passages as the"Center of the Center of Marine Shorefish Biodiversity".
THE PROJECTI.CONCEPTUAL DEVELOPMENT An exclusive masterplanned leisure development anchored on anexisting beach resort ,offering open lots,villas, condominiums andcondotel products and catering to the local middle and high endmarket.Land Area of 110 hectares. To be marketed as a world class top dive destination offering aunique resort experience of exceptional quality catering to theinternational dive and tourist market.Resort land area of 11.4hectares.
THE OPPORTUNITYI.MARKET AND INDUSTRY TRENDVerde island resort and Residential resort development product will beattractive to a variety of different markets.The first market it will appeal tois the local and International divers because of the low prices ofaccommodation for a high end resort facilities,and its proximity andaccessibility to the Metropolitan manila, Ninoy Aquino InternationalAirport and Central Business Districts.It also will appeal to the nearbybusiness people,groups and company outing and or for a leisure businessmeetings.It will also appeal to families because of the friendly and relaxedatmosphere that accompanies the low prices.other than that, TheInternational tourist arrival in the Philippines are growing in largenumber every year, combined with the local tourist are anticipated andthat this trend will continue. 2012 has recorded 4.27 Million foreigntourist arrival up by 9.1% from previous year.
TOURIST ARRIVAL RECORD 2000-20120500000100000015000002000000250000030000003500000400000045000002000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012TOURIST ARRIVALYEARTop source 2012 market of International tourist are Korea 24%, USA 15%, Japan10%, China 6%, Australia 4%, Taiwan 5%, Hong Kong 3%, Singapore 3%. Themain purpose of visit are Holiday 55.79% , Visit Friends and Relatives 3.47%, and Business 10.22%.Source:Department of Tourism
PROFILE OF FOREIGN TRAVELER0200,000400,000600,000800,0001,000,0001,200,000TOP TOURIST SOURCE COUNTRYSource: Department of TourismThe recorded average length of stay is around 9.61 nights and spending daily anaverage of US $92.99. Based on partial report from Department of Tourism the 2011arrivals generated 5.1 million separate overnight visits to destinations in thePhilippines, of which 4.4 million arrivals stayed in commercial touristaccommodation establishments. The top tourist destination in the Philippines in2011 are National Capital Region,Laguna,CamarinesSur,Cebu,Cavite, Zambales,Boracay Island,Batangas,Davao City,Baguio city,PuertoPrincesa city,Negros Occidental,Cagayan de Oro city and Pampanga with Batangashaving a growth rate of 76.48% next to Pampanga and Zambales.
TOP TOURIST DESTINATION 2011Source: Department of Tourism
Another major factor is the domestic tourism.Deparmentof Tourism reported that about 37.5 Million domestic travelin 2012 which exceeds its domestic travel target for2016.According to the survey conducted by Household surveyof domestic travel by National Statistics Office andDepartment of tourism in 2009 ,the main purpose ofdomestic travel is visiting friends and relatives53.3%, pleasure and vacation 34.3% ,business 9.8%,attendingmeetings,incentives,conventions and exhibition/events 2.8%and others 10.1%.International arrival to the Philippines increased by 6.5%per annum between 2000 to 2011.Assuming the same rate ofdevelopment as in past 11years,the Philippines could expect toachieve close to 5.4 Million arrivals out of 98 Million forecastby United Nation World Tourism Organization for SoutheastAsia by 2016.
FOREIGN TOURIST ARRIVAL – ACTUAL AND PROJECTION
II.COMPETITION AND OPPORTUNITYThe Resort main competitions are the resort located in PuertoGalera in Mindoro Province and is 20mins away by outrigger boatride from Verde Island Resort.The resorts which includes Mermaidresort,Atlantis dive resort,Blue crystal beach resort ,White beachresort,Dream wave hotel,Hollywood Palm beach,La Solana,BigApple dive resort,Apartel de Francesca,Villa Pamana,Buri resortand spa and coral cove resort.The area where this several resort are located have been describeas the poor man’s Boracay which showed varied occupancy ratebetween 50% to 70%.The majority of the room rates fall belowPhp3,500 and the only High end resort which is considered as themain competitor is the Buri resort and spa, but the resort has nobeachfront and at much higher room rate. Customers are usuallyfrom Metro Manila, Batangas,Japanese and Koreans.
On other locations, the popular beach resort in Batangas province are inLaiya,San Juan,Batangas.These are the Aquatico,Virgin resort,La Luz,BlueCoral resort,Kabayan Hotel,Sabangan and Laiya White Beach Coral.Mostof this resort experience a good occupancy rate minimum of 70%occupancy.Most of the resort rate fall below Php6,000/room.Only onehigh-end resort which also exhibit a high occupancy rate.The main marketof the resorts are usually from Metro Manila:Couples and Families,Groups and Company outings.
There are other resorts in Anilao,Mabini,Batangas.These are the ElSumbrero resort,Crystal Blue Resort,Anilao Outtrigger resort,PierUno,Vistamar,Anilao beach club,Leisure dive resort,Montecarlo and VistaMar Resort.All of the resorts are mid-priced room rates with no high enddevelopment.Some of the resort supplements their performance bycatering to Korean students and mostly caters to divers.
The finding and assessment of the recent study are thefollowing: No Ultra-high end development in the Area. The strongest area for resort is in Laiya,San Juan, Batangasfollowed by Puerto Galera Mindoro. The Beach quality are still the key factor for resortdevelopment. Even resorts in Laiya with minimal amenities still exhibits astrong occupancy rates. High- end resort starts from Php6,000/room.
ACTUAL AND PROJECTED FOREIGN AND DOMESTIC TRAVELER IN BATANGASSource: Department of Tourism
According to the accommodation capacity survey conducted byDepartment of Tourism,the number of establishment and rooms of theprovince of Batangas as of July 2012 is 2,134 including expansion and on-going construction.Based on data and projections on 2014 there will be alack of available rooms of 951 and by 2016 the numbers up to 3,794.BATANGAS ROOMS OCCUPANCY AND PROJECTIONS
PRICES Verde Island Resort : Php 370Million(more or lessUSD 9.025Million) 100 hecatres land : Php 700Million (more or less USD17.08 Million)Property price is based on Cuervo Appraisers Valuationon 2011
For Inquiries.Contact us through:Creating Abundance In Real Estate Multi-PurposeCooperative(CARENET Coop)Email: firstname.lastname@example.orgMobile: +63.917.913.5075