REAL ESTATE developer Cebu Landmasters, Inc. (CLI) entered a joint venture worth P360 million with Terre D’Or Realty Corp. to develop a co-living space project named Sugbu Prime Estate, Inc. in Cebu.
CLI is entering the dormitory business after seeing a demand for shared spaces by young professionals and students.
“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,” CLI Chairman and Chief Executive Officer Jose R. Soberano III said in a statement on Wednesday.
The Farrarons family, which is behind Terre D’Or Realty, owns two hotels and a mall in Cebu City.
“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,” he added.
The project will start with a 7,500 square meter property in Banilad, which is walking distance from Cebu IT Park. It is also near Cebu Business Park and is a ride away from the University of Cebu-Banilad, the University of Southern Philippines, and the University of San Carlos in Talamban.
A self-storage facility will be included in the property, with CLI citing a market study that forecast the demand for warehousing. The real estate developer said it would be useful for businesses doing e-commerce and home owners looking for extra spaces.
The mixed-use property will also feature retail spaces and more than 300 dormitory rooms.
“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,” the company said.
CLI expects the project to be a success as it projects a growth of outsourcing firms opening in Cebu. The co-living venture is the real estate developer’s latest move to diversify its portfolio, which already includes residential developments and hotels.
The company said it would disclose hotel partnerships for 307 rooms in the coming months. The company aims to roll out nearly 1,450 hotel rooms in the Visayas and Mindanao regions by 2024.
CLI shares at the stock exchange closed at P5.27 on Wednesday, going up by 0.38% from P5.25. — Keren Concepcion G. Valmonte