A win-win proposition in condominium building

In building the Adriatico Gardens, the newest three-tower condominium unit in Manila, property developer Suntrust took a less conventional route.

Instead of shelling out millions of pesos in cash to buy a land in which to put up the property, Suntrust decided to cut a deal with the local government of Manila. The deal saw the LGU hand over the title to Suntrust in exchange of—not cash—but 80 condominium units.

This was a “win-win” situation for everyone involved. For Suntrust, a company owned by real estate giant Megaworld, it means a more liquid cash flow that they can readily and immediately use to put up the buildings (instead of waiting for funds from pre-selling activities).

For the city of Manila, it means more economic activities in the city (with the construction, taxes to be collected, etc) as well as the chance to offer the condominium units to government employees at a more affordable price.

More importantly, it is the home buyers that benefit the most. Because Suntrust did not need to wait for funds (from pre-selling) or borrow money (which incurs interest), construction began as soon as all work permits were signed, resulting in faster delivery of units to the owners.

“With minimal cash out for Suntrust, we were able to create more packages that are more attractive to the consumers, with pricing of units at a more reasonable cost,” said Christine Bellen, Suntrust marketing manager.

Because they had the money to build, they did. Instead of constructing one building after the next as is usual, Suntrust built the three buildings all at the same time.

“We were not dependent on pre-selling. So despite the many calamities that hit Manila since we started construction in late 2008, we were able to deliver the units in time,” she said.

Adriatico Gardens (along Adriatico St in Manila; right beside SM Hypermarket) has a total area of 3,500 square meters. It has more than 700 saleable units among the three towers, ensuring low density of people per floor.

Emphasizing on the condo’s accessibility to just about anything (from schools, to entertainment hubs, to public transportation), Adriatico’s slogan of “Live without boundaries” is living up to expectations.

With studio, one-bedroom, and two-bedroom unit options, Adriatico Gardens appeals to overseas Filipino workers, assisted families, students, and government employees.

“Thank you (Suntrust) for helping change the skyline of the city … It’s really the businesses (and private investments such as this condominium) that contribute to the economic progress of the city of Manila,” said Manila Mayor Alfredo Lim, who graced the turnover ceremonies for the 80 units.

Lim said: “I extend protection and assistance in behalf of the city of Manila. I support this laudible project as this contributes to increased revenue for the city as well as for the adjacent projects that benefit from it. Condo owners pay taxes, too, which help the city (in more ways than one).”