Prime City Real Estate, Manila
Disregard the Philippines at your peril. A genuine Asian tiger, Philippines GDP has been rising at over 5% year on year and the Filipino peso appreciated a staggering 20% against the $USD since de-pegging just 12 months previously.
The capital city of Manila has fast become a major South East Asian trading post and is now competing against Bangkok as the commercial gateway to the East. The capital’s central business district is where it’s all at. An ever increasing abundance of multi national corporations, established Filipino companies, 5 star hotels, exclusive restaurants and the world’s first 24 hour floodlit golf course for busy executives has made Manila the location of choice for serious global investors. The time is now, and The Lancaster
Atrium Tower represents best of breed city real estate, promising higher than average yields (circa12%) and exceptional growth (off plan prices per m2 in this district have grown by 40% in the last 24 months).
The Lancaster Atrium
The Lancaster Atrium is the second of a triple skyscraper project in the prime centre of Ortigas, being developed by one of the fastest growing companies in the Philippines, Pacific Concord Properties Inc. The first tower, known as The Lancaster Suites is almost complete, built so far up to the 35th floor. The Lancaster Suites was sold out by the time construction began – such is the demand for prime city stock. The Lancaster Atrium is also 80% sold out already.
Pacific Concord is a blue chip developer and is featured in the Filipino “Superbrands” coffee table book. Another project recently completed by Pacific Concord is The Lancaster Cebu, a popular condotel (serviced apartments in a 'leisure and business' hotel environment) on the busy island of Cebu.
These images are of the completed Lancaster Suites – the first of the three towers – already 100% sold out.
The Lancaster Atrium apartments are available for sale now, prices below include fixtures, fittings, furniture and all dressing items (such as tableware, glassware, bedding, cutlery etc) – the units essentially come totally ready to rent: The cost of a unit is broken down into the property itself (we will call this the Bare Unit) and then the cost of the fit out and the furniture (we will call this the Fit Out). The prices are broken down in this way to minimize the amount of VAT buyers have to pay (VAT is only payable on the bare unit, not the fit out)
i) Studios range from 28m2 to 32m2 and cost circa £33,000 (bare unit and fit out)
ii) 1 beds range from 44m2 to 62m2 and cost circa £49,000 (bare unit and fit out)
iii) 2 beds range from 74m2 to 76m2 and cost circa £84,000 (bare unit and fit out)
iv) 3 beds are 106m2 and cost circa £118,200 (bare unit and fit out)
All payments are to be made in Filipino Peso, prices are in £sterling as a guide only
The payment schedule for the Bare Unit is as follows
1. $2000.00 deposit to reserve a unit
2. 30% due after a 30 day due diligence period
3. The 70% balance can be paid in 72 equal monthly installments, on an interest free credit basis*
*This in-house finance offer is non status and is open to foreign buyers and Filipino nationals.
The payment schedule for the Fit Out is as follows
1. There is nothing to pay at all for the first 3 years
2. The total cost of the fit out is payable in 12 equal monthly installments in year 4
3. There is nothing to pay in years 5 and 6
Rental and Management
Buyers taking up properties in The Lancaster Atrium have the option to lease their unit back to the in-house management company and obtain a rental yield, which conservatively is expected to be around 8% of the property purchase price, rising up to 12% after the first two or three years of operations.
Tenure
Foreigners can own property in the Philippines on a freehold basis, provided that the property falls under the Condominium Jurisdiction. In the case of The Lancaster Atrium, this project does fall under the condominium jurisdiction, so foreigners can benefit by owning these on a freehold basis.
This investment opportunity is second to none; the Filipino economy is delivering sustained yet aggressive growth and this is your chance to own real estate in the capital. The Lancaster Atrium’s location is a diamond site, in the heart of the central business district and the development company is a blue chip organisation. The units are keenly priced offering the chance for substantial capital growth, whereas the interest free credit allows buyers to spread their payments thus reducing the amount of cash required to make the purchase. The units can come fully furnished, fully managed and ready to rent. Take advantage of this hands free, high returning investment opportunity.
Pricing
The cost of a unit is broken down into the property itself (we will call this the Bare Unit) and then the cost of the fit out and the furniture (we will call this the Fit Out). The prices are broken down in this way to minimize the amount of VAT buyers have to pay (VAT is only payable on the bare unit, not the fit out)
All payments are in pesos - the £ prices below are a guide:
Studios range 28m2 to 32m2 and cost circa £33,000 (bare unit and fit out)
1 beds range from 44m2 to 62m2 and cost circa £49,000 (bare unit and fit out)
2 beds range from 74m2 to 76m2 and cost circa £84,000 (bare unit and fit out)
3 beds are 106m2 and cost circa £118,200 (bare unit and fit out)
Payment schedules
The payment schedule for the Bare Unit is as follows
1. $2000.00 deposit followed by a 30 day due diligence period
2. 30% of the total cost for the Bare Unit payable
3. The balance of 70% of the cost of the Bare Unit is then payable in 72 equal monthly installments, totally interest free
The payment schedule for the Fit Out is as follows
1. There is nothing to pay at all for the first 3 years
2. The total cost of the fit out is payable in 12 equal monthly installments in year 4
3. There is nothing to pay in years 5 and 6
Case study for a 30m2 studio - total price £33,000
Bare Unit price
The price of the Bare Unit per m2 is 75,888 pesos which is approx £900.00
So, as an example, a studio of 30m2 would cost approx £27,000
Fit Out price
The price of the Fit Out per m2 is 18,000 pesos which is approx £200.00
So, as an example, the studio of 30m2 would cost approx £6,000 to fit out
Total price
Bare Unit £27,000 + Fit Out £6,000 = £ 33,000
Rental return
Owners have the option to lease their apartments back to the management company and join the rental pool. Rental income starts after the unit is fully fitted out, furnished and turned over to the Condotel Management for enrolment. This happens at the end of year 4, so during years 5 and 6 buyers will receive a rental income. The projected income for the unit is approximately 8% per annum and expected to rise in the coming years.
Maintenance costs
The maintenance cost is variable depending upon size of your apartment and is payable monthly. The following are based on estimated costs and are subject to final assessment:
Association Dues is estimated at about Php 60.00/sqm payable monthly
Real Estate Taxes are estimated at circa Php 350.00/sqm payable yearly
Other costs
Titling and turnover
Based on Studio Unit: (One Time Payment Only)
Titling expenses estimate Php 82,000.00
Turnover expenses estimate Php 39,000.00
Total Php 121,000.00 circa £1,500
Tenure
Apartments in The Lancaster Atrium can be purchased on a Freehold basis.
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