Will the challenges at WPS affect investment at an island province

Every generation needs a revolution - an entrepreneurial revolution

For two years we have envisioned investment in a popular tourist oriented island province  Finally, we got a presentation from a business partner who is from the place.  That was Friday.

The following Monday, there was this ugly confrontation between the foreign armed forces and ours.

Can this, well this affect our foray into this island province?

Possible business, business deal in an island province

Every generation needs a revolution - an entrepreneurial revolution

A business colleague was kind enough to visit us today and meet up in Makati, as she pursues her duties as an officer of financial institution.  This is going to be part of her vision to provide mansions as mentioned in John 14 - 2:3.

It is going to be near an existing business, 4.4 hectares in area.  But its going to cost us in the high 4 numbers but we can get high selling price, the inventory being in such short supply in the area.  The area is only 5 km from the main city proper, and the airport.  

Its going to be positioned as a high end market (for the GE market) more luxurious more defined features.  

The only obstacle to the projects are:    1.  salability  - can we sell at P100K in 4 to 5 years. 2. can we have funds to cover the good 9 numbers selling price  (albeit small dp, 4 years qtrly payment.

Good luck to us.  Fortunately it rained hard as I was going home.   

We were comparing two investment options: one in a City in an island province, the other in Rizal equal number of population

Every generation needs a revolution - an entrepreneurial revolution

We were confronted with making a choice between possible investment

                      island province                              Rizal province

Area                 3.2 hectare                                   3.5 hectare

Docs                 titled                                            tax dec (untitled)

Populations      303K                                            313 K

Competition     3 other MPs but distant               none (will be the sole MP

deal                   purchase at  P8K/sm                   JV

Cash out          P200M                                         Max 20M

Degree of        high for cash flow                        high for titling

difficulty    

What is your choice?  Which do you prefer?

JV again

Every generation needs a revolution - an entrepreneurial revolution

A business acquaintance called me yesterday from a tourist island province.   She informed me that the botched land purchase we had (due to competition) is not proceeding smoothly.  Apparently the same problem we had was encountered by the mogul buyer, a big name in the industry

We dont mind this though because we a have jv in a tourism city in the north and it could be jv.

So the business partner informed me that to avoid the competition in the island province, we would shift to an AB market say 3 to 4 hectare and probably jv.  

A jv would be preferable because you save the cash flow for land acquisition and you can proceed right away with development and construction.    The landowner is assured of continuous source of income and becomes part of price increases

We hope we can be successful in both

More business opportunities at the beginning of 2023 - forecasted to be bad year of the Rabbit

Every generation needs a revolution - an entrepreneurial revolution

Just had a conversation the other day with a business friend, a bank executive regarding her query of the possibility of investing in a memorial park in the capital of island province.   There are no more inventories, and the land she presented to be a possible site 3 years ago at P400/00 sm is now a city

cemetery.

What are the things that favor such a project:

1.  The only memorial park in the city is sold out.

2.   The selling price is  P115k/plot - but there are no inventories

3.   The population of city is 307 k.

4.   The city is first class with annual revenue of P3.8 billion

Memorial opportunities:

    1.  Death rate at 0.5% = 15,000 (we can sell in one year)

    2.  Household  300,000/5 =  60,000

    3.  Class A and B buyers =  10% =  30,000.

We can have buyers in excess of inventories.  We can cover by having say 20,000 columbarium 

Possible sites:

1.  5.2 hectare going up north at P1,200/sm  (about 60m cash)

2.  JV with religious for a columbarium

For the 5.2 hectare, the yield would be about 12,500 plots that can be sold for P80k per plot or 1B

What to do:

1.  Talk to the religious for combi project of  MP and columbarium/crematorium

2.  Agree to P1,200  stagger payment, secure pre sales commitment to pay the balance.   

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